MarketWatch: U.S. stocks end lower as rising Treasury yields weigh on tech shares
U.S. stocks ended modestly lower on Tuesday,...
U.S. stocks ended modestly lower on Tuesday, as Treasury yields rose, keeping pressure on the rate-sensitive Nasdaq Composite Index. The Dow Jones Industrial AverageDJIA shed about 37 points, or 0.1%, ending near 32,394, while the S&P 500 index SPX fell 0.2% and the NasdaqCOMP closed 0.5% lower, according to preliminary data from FactSet. Stocks fell, but ended off the session lows, as the 2-year Treasury rateTMUBMUSD02Y climbed 10.5 basis points to 4.06%. Bond yields and prices move in the opposite direction. Tuesday also saw a raft of relatively upbeat economic data and increased expectations by traders in fed-funds futures of no rate hike for the Federal Reserve’s May policy meeting. Another area of focus was a hearing on the collapse of Silicon Valley Bank and Signature Bank, with regulators saying the run on Silicon Valley Bank caused it to lose $142 billion in two days.
Shares of Occidental Petroleum Corp. OXY, +2.62% climbed 2.3% in premarket trading Tuesday, after the oil and gas exploration and production company was upgraded at TD Cowen, citing a “superior” risk-reward balance. Analyst David Deckelbaum lifted his rating to outperform the market to perform and boosted his stock price target to $70 from $63. He listed a number of reasons for his bullishness, such as “superior” exposure to crude oil pricing, capital structure shifts, a favorable free cash flow yield, well productivity and “captive buying support” from Warren Buffett’s Berkshire Hathaway Inc.BRK.B, -0.24%BRK.A, -0.13%, which has been steadily increasing its stake in the company since early 2022 to be Occidental’s largest shareholder. Deckelbaum noted that Berkshire owns 26% of Occidental’s shares outstanding, and has about 10% further exposure through warrants to buy stock. “Asset and inventory quality is a key focal point for investors in a range-bound commodity tape where we see a superior profile for OXY, but also note ideal exposure to higher oil pricing in the event that macro views of an under-supplied situation in 2H23 emerge,” Deckelbaum wrote in a note to clients. The stock has lost 3.9% over the past three months, while crude oil futures CL.1, +0.67% have dropped 8.5% and the S&P 500 SPX, -0.22% has gained 3.6%.
US stock futures traded mixed early Tuesday as banking sector concerns continue to ease....
US stock futures traded mixed early Tuesday as banking sector concerns continue to ease. Investors are now awaiting US home price data and The Conference Board's consumer confidence report, due out later today.Here are the latest market moves.
On the docket: Walgreens Boots Alliance, Micron Technology, and McCormick, all reporting.
ConocoPhillips remains faithful to Alaska's oil potential
Despite the departure of oil majors such as BP and Shell...
Despite the departure of oil majors such as BP and Shell due to environmental, operational, and regulatory issues, ConocoPhillips is determined to continue drilling in Alaska, buoyed by the Biden administration's recent approval of the $7 billion Willow oil project. The state has been a lucrative investment for ConocoPhillips, representing around 25% of its annual earnings from 2012 to 2022, and ongoing investments have cemented the company's position as Alaska's biggest oil producer.
API report: US petroleum demand, exports ticked up in Feb.
US petroleum demand climbed by 45,000 barrels per day month over month to 19.8 million bpd in February,...
US petroleum demand climbed by 45,000 barrels per day month over month to 19.8 million bpd in February, the highest since November, although the figure marked a 3.1% decrease from February 2022, shows the American Petroleum Institute's latest monthly statistical report. The US also witnessed a 400,000-bpd jump in petroleum exports to 10 million bpd, while petroleum imports rose marginally, making the country a petroleum net exporter of 1.1 million bpd in February, the second-highest monthly level since 1947.
