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Sector Update: Energy Stocks Decline Late Afternoon

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Energy stocks were lower late Thursday afternoon, with the NYSE Energy Sector Index easing 0.2% and the State Street Energy Select Sector SPDR ETF (XLE) decreasing 0.4%.

The Philadelphia Oil Service Sector Index was shedding 0.6%, and the Dow Jones US Utilities Index was declining 0.9%.

In geopolitical news, an Iran-aligned militia group's threat to the alternative shipping route through the Strait of Hormuz grew stronger. Iran-aligned Houthis seized control of Yemen's port city of Mocha on Thursday, military sources said, gaining further leverage over the Bab el-Mandeb Strait, the southern outlet of the Red Sea and an important shipping route, Reuters reported.

Front-month West Texas Intermediate crude oil jumped 6.4% to $102.23 a barrel, and the global benchmark Brent crude contract popped 6.2% to $107.44 a barrel. Henry Hub natural gas futures rose 0.6% to $2.84 per 1 million BTU.

In sector news, the Organization of the Petroleum Exporting Countries cut its global oil demand outlook for 2026 on Thursday as high energy prices are expected to weigh on consumption. The cartel now expects oil consumption to increase by 380,000 barrels this year, down from its prior forecast that called for a gain of 580,000 barrels.

US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 1.6 million barrels in the week ended Sept. 4 following a decrease of 7.6 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks fell by 400,000 barrels after a 4.5-million-barrel decline in the previous week, a much smaller drop than the 1.4-million-barrel decrease expected in a survey compiled by Bloomberg.

US natural gas stocks rose by 40 billion cubic feet in the week ended Sept. 4, above the 34 billion increase expected in a survey compiled by Bloomberg and following an increase of 30 billion cubic feet in the previous week.

In corporate news, Constellation Energy (CEG) agreed to acquire RISEC Holdings, owner of the Rhode Island State Energy Center, from Shell's (SHEL) North America energy unit, for $715 million. Constellation shares fell 2%, and Shell rose 0.5%.

Braskem (BAK) said Wednesday that its subsidiary Voqen Energia amended a natural gas supply agreement with Petrobras (PBR), extending the contract through Dec. 31, 2029, from Dec. 31, 2026. Braskem shares jumped past 7%, and Petrobras was up 2.3%.

TotalEnergies (TTE) and its partners plan to invest $10 billion in Angola over the next five years to increase oil output in the country, news outlets reported as early as Wednesday, citing remarks made by TotalEnergies CEO Patrick Pouyanne at a conference. TotalEnergies shares were down 0.2%.

Vistra (VST) was Smart Insider's stock pick of the week after Chief Executive Jim Burke bought $1.2 million worth of shares between Aug. 24 and Sept. 1 at an average price of $135.38. Vistra shares were shedding 2.2%.

What else is happening in Sectors?

Sectors

Sector Update: Energy Stocks Gain Late Afternoon

Energy stocks were higher late Wednesday afternoon, with the NYSE Energy Sector Index rising 1.2% and the State Street Energy Select Sector SPDR ETF (XLE) adding 1.1%.The Philadelphia Oil Service Sector Index was up 0.4%, and the Dow Jones US Utilities Index fell 1%.Brent crude prices crossed $100 per barrel for the first time since late July as Iran attacked 10 ships near the Strait of Hormuz, deepening the Middle East conflict.Front-month West Texas Intermediate crude oil rose 3.6% to $96.39 a barrel, and the global benchmark Brent crude contract gained 3.5% to $101.34 a barrel. Henry Hub natural gas futures fell 3.8% to $2.81 per 1 million BTU.In corporate news, BP (BP) has attracted interest from several potential buyers for its North Sea operations, Bloomberg reported. Potential suitors include Equinor (EQNR) and Shell (SHEL) joint venture Adura and TotalEnergies-backed (TTE) NEO Next+, the report said. BP shares rose 1.7%.Baker Hughes (BKR) said it now expects full-year revenue of $28.50 billion to $30.30 billion, compared with prior outlook of $26.65 billion to $28.05 billion. Analysts surveyed by FactSet expect $28.03 billion. Its shares lost 0.3%.New Fortress Energy (NFE) said Wednesday that its board approved a 1-for-50 reverse stock split of its class A common stock. The reverse stock split is intended to help the company regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Global Select Market. New Fortress shares rose 4.8%.Shell Lubricants and Faw Trucks have jointly developed a battery pack that has been successfully tested on the Shell Starship 3.0 hybrid concept truck and is ready for future use in Faw's hybrid commercial vehicles, the companies said. Shell shares were up 0.3%.

$BKR$BP$NFE$SHEL
Sectors

Sector Update: Healthcare Stocks Softer Late Afternoon

Healthcare stocks were lower late Wednesday afternoon with the NYSE Healthcare Index and the State Street Health Care Select Sector SPDR ETF (XLV) each shedding 0.2%.The iShares Biotechnology ETF (IBB) declined 0.8%.In corporate news, UnitedHealth (UNH) sold an interest in some of its Optum Health operations in Florida to TPG (TPG), Bloomberg reported. UnitedHealth shares were down 2.2%.Agilent Technologies (A) shares fell 1.2% after UBS downgraded the stock to neutral from buy.Rezolute (RZLT) said Wednesday that the US Food and Drug Administration is still reviewing data from a phase 3 study of ersodetug for the potential treatment of hypoglycemia due to congenital hyperinsulinism. The company said it does not have a specific timeline on when it will receive feedback or guidance from the FDA on potential next steps. Rezolute shares were down past 7%.Opus Genetics (IRD) shares jumped 35% after it said that patients with Bestrophin-1-related retinal diseases showed clinically meaningful improvement in visual function in the low-dose cohort 1 of its BIRD-1 phase 1/2 trial evaluating OPGx-BEST1.

$A$IRD$RZLT$UNH
Sectors

Sector Update: Tech Stocks Ease Late Afternoon

Tech stocks eased late Wednesday afternoon with the State Street Technology Select Sector SPDR ETF (XLK) little changed after erasing earlier gains and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 0.2%.The Philadelphia Semiconductor index rose 0.2%.In corporate news, Apple (AAPL) introduced iPhone Duo, its first foldable iPhone, featuring a 7.6-inch inner display and 5.4-inch outer display, both using Super Retina XDR technology. Apple shares fell 0.2%.Dell Technologies (DELL) is set to raise $5 billion via an investment-grade bond sale that attracted about $23 billion in peak orders, Bloomberg reported. Dell shares were little changed.Meta Platforms (META) launched a new personal AI agent called Muse AI, which can send emails, book travel plans, and continue working after users close the app. Meta shares jumped 6.4%.Analog Devices (ADI) agreed to buy Alif Semiconductor for $1.35 billion in cash to add AI-native microcontrollers and fusion processors. Analog Devices shares eased 0.1%.

$AAPL$ADI$DELL$META