Sector Update: Energy

Energy stocks were higher Friday afternoon, with the NYSE Energy Sector Index rising 1% and the State Street Energy Select Sector SPDR ETF (XLE) adding 1.1%.

The Philadelphia Oil Service Sector Index was fractionally higher, and the Dow Jones US Utilities Index rose 0.7%.

Oil prices fell on Friday following media reports that the US and Iran are nearing a potential peace deal, just days after the two sides exchanged strikes in a sharp escalation of tensions since a ceasefire in April.

The US and Iran are edging closer to an interim agreement to reopen the Strait of Hormuz, Bloomberg reported Friday, citing senior officials. The signing of the potential agreement could come on the sidelines of the Group of Seven summit starting next week in France. The agreement would extend the existing ceasefire by around two months and open further negotiations over Iran's nuclear program, the report said.

Front-month West Texas Intermediate crude oil fell 3.6% to $84.59 a barrel, and the global benchmark Brent crude contract dropped 3.6% to $87.14 a barrel. Henry Hub natural gas futures rose 1.3% to $3.13 per 1 million BTU.

In corporate news, Exxon Mobil (XOM) is studying potential takeover targets, including Woodside Energy (WDS), as the energy giant looks to increase its presence in the liquified natural gas sector and in Asian markets, Bloomberg reported. Exxon shares rose 0.7%, and Woodside jumped past 6%.

Sector Update: Energy Stocks Fall Late Afternoon

Energy stocks fell late Thursday afternoon, with the NYSE Energy Sector Index down 0.5% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 1.6%.The Philadelphia Oil Service Sector Index was rising 0.7%, and the Dow Jones US Utilities Index was up 0.8%.President Donald Trump said Thursday on Truth Social he has cancelled previously announced strikes on Iran tonight as "final points" of a deal have been, "in both concept and great detail, approved by all parties involved." He said the time and place of a deal signing between the nations will "be announced shortly."Front-month West Texas Intermediate crude oil fell 4.2% to $86.23 a barrel, and the global benchmark Brent crude contract dropped 4.6% to $88.82 a barrel. Henry Hub natural gas futures shed 3.3% to $3.08 per 1 million BTU.In sector news, the Organization of the Petroleum Exporting Countries on Thursday lowered its global oil demand growth forecast for this year but raised its expectations for 2027. The cartel now expects oil consumption to rise by 970,000 barrels a day this year, down from its prior estimate that called for an increase of 1.17 million barrels. For 2027, OPEC now expects world oil demand to rise by 1.73 million barrels a day, compared with its last month's forecast of a 1.54 million-barrel increase.In corporate news, BP (BP) should provide clarity on its medium-term growth targets and balance sheet goals amid the ongoing boardroom drama with the recent removal of Chair Albert Manifold, RBC Capital Markets said in a note. BP shares were down 0.6%.Oklo (OKLO) shares jumped 7% after it said Thursday that the US Department of Energy has approved the preliminary documented safety analysis for the Aurora powerhouse at Idaho National Laboratory under the department's Reactor Pilot Program.Energy Fuels (UUUU) shares surged 10% after the company said it expects finished uranium production at its White Mesa Mill to reach about 1.6 million pounds by June 30, which would already be within its full-year guidance range of 1.5 million to 2.5 million pounds of U3O8.Black Hills' (BKH) pending merger with NorthWestern Energy (NWE) has an underappreciated strategic value as the combination will likely offer larger scale, stronger balance sheet, and wider jurisdictional diversity, BofA said in a note. BofA upgraded Black Hills to buy from neutral and increased the company's price target to $78 from $76. Black Hills shares rose 0.3%.

$BKH$BP$OKLO$UUUU

Sector Update: Financial Stocks Rise Late Afternoon

Financial stocks advanced in late Thursday afternoon trading, with the NYSE Financial Index rising 1.2% and the State Street Financial Select Sector SPDR ETF (XLF) adding 1%.The Philadelphia Housing Index climbed 3.2%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was up 0.4%.Bitcoin (BTC-USD) gained 3.2% to $63,436, and the yield for 10-year US Treasuries dropped 8.3 basis points to 4.459%.In economic news, core producer price index, which excludes the more volatile food and energy prices, increased by 0.4% in May, slower than the 0.5% gain expected in a Bloomberg-compiled poll and following a 0.7% gain in April. Core PPI remained at 4.9% year-over-year, but below the 5.4% consensus.US initial jobless claims rose to a level of 229,000 in the week ended June 6 from an unrevised level of 225,000 in the previous week, compared with expectations for an increase to 220,000 in a survey of analysts compiled by Bloomberg.In sector news, the US Supreme Court on Thursday overturned a lower court ruling, blocking activist investors from suing closed-end mutual funds over maneuvers they take to avoid activist-investor takeovers. Saba Capital Master Fund, which led the suing investors, alleged that such moves, like incorporating in favorable jurisdictions, violate the Investment Company Act of 1940.In corporate news, Citigroup (C) launched tokenized depositary receipts for private-company shares, expanding its use of blockchain technology in private markets. Citi shares rose 3.6%.BlackRock (BLK) placed an order to buy at least $5 billion worth of SpaceX shares, the Wall Street Journal reported. Individual investors placed more than $70 billion in orders, and the company also attracted demand from sovereign wealth funds and family offices, including a single family office order of over $1 billion, the report said. BlackRock shares were up 0.8%.KKR (KKR) and co-investors will acquire a majority stake in Chicago-based accounting firm Crowe in a $3 billion deal, The Wall Street Journal reported. Separately, KKR said it launched Helix Digital Infrastructure, a platform with over $10 billion in committed capital to finance AI infrastructure. KKR shares were up 0.1%.Charles Schwab (SCHW) said Thursday that it has lowered expense ratios on four of its equity index ETFs, including funds tracking US mid-cap, small-cap, international small-cap, and emerging markets stocks. Its shares eased 0.1%.

$BLK$C$KKR$SCHW

Sector Update: Consumer Stocks Advance Late Afternoon

Consumer stocks were higher late Thursday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) increasing 0.3% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 2%.In corporate news, Target (TGT) shareholders opposed a proposal to separate board oversight from executive leadership, allowing former chief executive Brian Cornell to remain executive chair, Reuters reported. Target shares rose 3.6%.Burlington Stores (BURL) is set to continue gaining market share and improving profitability as it strengthens merchandising, inventory allocation, and supply chain efficiency, UBS Securities said in a report. UBS has a buy rating on Burlington stock with a $435 price target. Burlington shares climbed 4%.Oxford Industries (OXM) shares dropped 18% after the clothing company provided a fiscal Q2 sales outlook below analyst estimates, while its results declined year over year in the prior three-month period.McGraw Hill (MH) reported a year-over-year decline in fiscal Q4 sales on Thursday amid weakness in the K-12 business. Its shares fell 3.5%.

$BURL$MH$OXM$TGT

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