Oil Gains On OPEC+ Cut Talks

OPEC+ will resume talks today with a view to planning for 2021 and the continuation of output cuts to support the oil price in a time when demand is lower as the world recovers from the pandemic. A deal is expected to be reached for cuts of 7.7 million barrels per day which has seen oil trickle up overnight and trade around the $45.50 mark. The question mark will be on compliance to these cuts which had been a problem previously with some of the smaller member nations reluctant to cut their supply (OIL).

In corporate news, Salesforce (CRM) stock slumped after confirming its $27.7bn Slack (WORK) acquisition and setting out a lower than expected growth forecast. The cloud-based software company’s share price fell by 8.5% as, although it beat analyst earnings expectations, the firm said it expects Q4 revenues to be around 15% lower than analysts had anticipated.

Famine or feast day for S&P 500 sectors

The major US stock indices took a breather yesterday, with all three close to flat for the day. That overall result hides big disparities in performance between different sectors, with the S&P 500’s energy sector up 3.2% while the materials sector fell 1.4%. In the S&P, nine firms gained more than 5%, including cruise firm Carnival (CCL), Occidental Petroleum (OXY) and Boeing (BA). Salesforce was the worst performer in the index, followed by home appliance company Whirlpool (WHR) which fell by 5.2%.

Tesla (TSLA) once again made headlines this week, after chief executive Elon Musk sent an email to employees on Tuesday warning them to control costs: “Investors are giving us a lot of credit for future profitability but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a souffle under a sledgehammer,” he said. Tesla stock made moves in after-hours trading yesterday, swinging from a 2.7% loss for the day into positive territory.

S&P 500: +0.2% Wednesday, +13.6% YTD (SPX, SPY)

1 2 3
View single page >> |

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.