Valero Energy Corporation (VLO)

Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which can produce 1.2 billion gallons per year of renewable diesel.

Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which can produce 1.2 billion gallons per year of renewable diesel.

With total capacity of approximately 3.0 million barrels per day, Valero is the world's largest independent petroleum refiner and marketer. The company has 15 refineries and 11 ethanol plants in the U.S., Canada, the U.K., and the Caribbean, and its refineries can process heavy, low-quality crude oil. The company is a component of the S&P 500 and employs approximately 10,300 people.

Headline events this week include the Federal Reserve meeting scheduled for Tuesday and Wednesday as well as a long list of companies reporting earnings. Stocks were volatile last week and ended with the Dow Jones Industrial Average up 0.4%, the S&P 500 down 0.5%, and the Nasdaq off by 1%. Year to date, the Dow is up 9%, the S&P 500 by 11%, and the Nasdaq by 12%. On the economic calendar, the next rate decision from the Federal Open Market Committee (FOMC) comes on Wednesday. As of Friday, the odds for no change in rates were at 92%. Traditionally, the FOMC does not move on rates when Election Day is near, as is the case currently. Looking ahead, the final meeting for the Federal Reserve in 2026 will be on December 9. Also on the calendar this week is the release of the latest Personal Consumption Expenditures Index, which is due out on Thursday. On the earnings calendar, nearly 900 U.S. publicly traded companies will be reporting this week. Verizon reports on Monday; Visa, Coca-Cola, and Boeing on Tuesday; Alphabet, Microsoft, and SK Hynix on Wednesday; Amazon, Eli Lilly, Mastercard, Intel, Merck, Caterpillar, and Anheuser-Busch on Thursday; and ExxonMobil, Chevron, AbbVie, AstraZeneca, and Colgate-Palmolive on Friday. Only 24% of S&P 500 companies had reported as of Friday. Earnings so far are up 31% from last quarter, with the Financial sector most heavily represented but the Energy sector in the lead for EPS growth. Turning to other economic metrics, gas prices fell five cents last week to an average of $4.28 per gallon for regular gas. Elsewhere, the Atlanta Fed GDPNow forecast calls for GDP growth of 3.5% in the third quarter, slightly lower than the forecast from last week. The Cleveland Fed Inflation Nowcast is at 3.8% for October CPI, compared to 3.7% in September. Mortgage rates fell eight basis points last week, with the average 30-year fixed-rate mortgage now at 7.32%, according to FreddieMac. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 6% year to date, while the leading emerging market ETF (EEM) is up 13%. U.S. growth stocks are up 1% when looking at ETF IWF, while value stocks (IWD) are up 21%. Crude oil prices continue to be volatile. On Friday, oil was at about $103 per barrel, up 78% for the year. In other asset classes for the year to date, AGG bonds are down 4%, gold is down 9%, and Bitcoin is down 7%. The U.S. dollar is up 4%, tracking DXY. The VIX Volatility Index was at about 20 on Friday, matching its historical average. Turning to sector performance, the list from first to worst so far in 2026 is Energy (+51%), Information Technology (+27%), Healthcare (+17%), Consumer Staples (+16%), Materials (+14%), Industrials (+7%), Real Estate (+5%), Financials (+3%), Utilities (flat), Consumer Discretionary (-4%), and Communication Services (-8%).