Connect with us

Markets

U.S. stocks recovered from early losses on Monday

Published

on

Traders work on the floor of the New York Stock Exchange

U.S. stocks recovered from early losses on Monday to close higher, helped by firmer oil prices, as investors awaited an expected Federal Reserve interest rate hike later in the week.

The S&P 500 benchmark index rallied in the afternoon after falling earlier in the session in a volatile trading day. Concerns about high-yield bonds, oil price swings and the Fed made for a skittish market, said Peter Costa, president of Empire Executions Inc.

“It’s a lot of uncertainty,” he said.

While investors widely expect the Fed to announce its first rate hike in nearly a decade on Wednesday, they are also waiting for commentary from policymakers about what will happen next.

Traders see an 83-percent chance that the Fed will lift rates by 25 basis points, according to the CME Group’s FedWatch program.

The Dow Jones industrial average .DJI rose 103.29 points, or 0.6 percent, to 17,368.5, the S&P 500 .SPX gained 9.57 points, or 0.48 percent, to 2,021.94 and the Nasdaq Composite.IXIC added 18.76 points, or 0.38 percent, to 4,952.23.

The S&P energy sector .SPNY was up 0.8 percent. U.S. crude oil settled up 1.9 percent after moving within a hair of 11-year lows, but analysts and traders said it is still too early to declare the market reached bottom.

Although stocks closed higher, equity investors are still concerned about the high-yield bond market. Third Avenue Management LLC’s junk bond fund collapsed last week and the company said Monday its chief executive agreed to leave.

“It’s just the fear of the unknown,” said Angel Mata, managing director of listed equity trading, Stifel Capital Markets in Baltimore. “2008 – though it was seven years ago – is still fresh in everybody’s mind and the fear is we could have a kind of situation that we had back then, which was driven by the fixed-income side.”

Nine of the 10 major S&P sectors ended the day higher.

S&P materials .SPLRCM were the only sector to show losses, down 1.4 percent, hurt by Dow Chemical and DuPont, which agreed on Friday to merge. DuPont shares (DD.N) were down 3.6 percent, while Dow Chemical (DOW.N) fell 3.9 percent.

Newell Rubbermaid (NWL.N) was down 6.9 percent at $42.15. Newell, known for its food containers, agreed to buy Sunbeam and Coleman products maker Jarden Corp (JAH.N) for more than $15 billion. Jarden was up 2.7 percent at $54.09.

NYSE declining issues outnumbered advancing ones 2,326 to 810, for a 2.87-to-1 ratio on the downside; on the Nasdaq, 1,804 issues fell and 1,034 advanced, for a 1.74-to-1 ratio favoring decliners.

The S&P 500 posted 2 new 52-week highs and 54 new lows; the Nasdaq recorded 18 new highs and 236 new lows.

About 8.9 billion shares changed hands on U.S. exchanges on Monday, above the 7.03 billion average for the last 20 sessions, according to Thomson Reuters data.

Reuters

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

Published

on

Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

Continue Reading

Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

Published

on

Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

Continue Reading

Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

Published

on

Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending