Consumer stocks were declining pre-bell Wednesday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) 0.1% lower and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) down 0.4%.
US Foods (USFD) increased the overall commitments under its asset-based lending agreement to $2.5 billion from $2.3 billion, the company said. Shares of US Foods Holding were down 2% in recent premarket activity.
Technology stocks were edging higher premarket Wednesday, with the State Street Technology Select Sector SPDR Fund (XLK) up 0.1% and the State Street SPDR S&P Semiconductor ETF (XSD) advancing by 1.6%.Cognyte Software (CGNT) stock was down more than 19% after the company reported lower fiscal Q1 non-GAAP earnings.
Gold prices fell early on Wednesday as the dollar rose to a two-month high after oil prices rose following fresh hostilities between the United States and Iran, renewing worries energy inflation will force central banks to raise interest rates.Gold for July delivery was last seen down US$32.30 to US$4,487.60 per ounce.The drop comes as oil prices rose for a third day on fresh hostilities between Iran and the United States. The Wall Street Journal reported Iran launched attacks on Kuwait and Bahrain and the United States attacked Iran's military ground control stations on Qeshm Island and struck at an empty oil tanker attempting to run its blockade of Iranian ports and load oil at Iran's Kharg Island."Gold trades lower as the market continues to take its cues from oil, with the latest rise in crude prices weighing on bullion through its inflationary impact. Higher energy costs have underpinned bond yields and the dollar while reducing expectations for Federal Reserve rate cuts," Saxo Bank noted.The dollar rose to the highest since April 7, with the ICE dollar index last seen up 0.26 points to 99.48. Treasury yields also rose, with the U.S. two-year note last seen up 4.4 basis points to 4.094%.
Oil prices rose for a third day early on Wednesday as the ceasefire between Iran and the United States appeared to fracture as the two sides exchanged strikes, lowering hopes for a deal to end the war and reopen the Strait of Hormuz.West Texas Intermediate crude oil for July delivery was last seen up US$1.92 per barrel, while August Brent oil was up US$2.09 to US$98.09.The Wall Street Journal reported Iran launched attacks on Kuwait and Bahrain and the United States attacked Iran's military ground control stations on Qeshm Island and struck at an empty oil tanker attempting to run its blockade of Iranian ports and load oil at Iran's Kharg Island.The strikes are lowering hopes for an end to the war that is now in its fourth month. The closure of the Strait of Hormuz since the war began on Feb. 28 has shut in most exports from the Persian Gulf nations that supplied a fifth of daily oil demand. While U.S. President Trump has claimed a deal to end the war is near, Iran on Monday said it is refusing further talks until Israel ends its attacks ol Lebanon."Crude oil is trading higher for a third consecutive session, with Brent pushing above USD 97 as market pessimism once again grows over the prospects of a US-Iran deal that could pave the way for a reopening of the Strait of Hormuz. The latest escalation saw US forces intercept Iranian missiles and drones before striking an Iranian command center in response. For now, the risk premium continues to be partly offset by President Trump's repeated insistence that an interim agreement remains within reach," Saxo Bank noted.Dwindling U.S. inventories are also supporting prices. In its weekly survey, the American Petroleum Institute report U.S. oil stocks fell by 6.75-million barrels last week, the seventh-straight weekly drop and well more than the consensus estimate for a drop of 3.6-million barrels, according to Investing.com. The Energy Information Administration will release official inventory data later on Wednesday morning.