FINWIRES · TerminalLIVE
FINWIRES

Sector Update: Energy Stocks Fall Tuesday Afternoon

By

Energy stocks fell Tuesday afternoon, with the NYSE Energy Sector Index down 1% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.9%.

The Philadelphia Oil Service Sector Index was down 0.4%, and the Dow Jones US Utilities Index added 0.4%.

In geopolitical news, Iran pledged to fight back against expanded US sanctions aimed at isolating its economy, expressing confidence that major trading partners would resist the pressure campaign and saying that Washington was keen to revive talks, Reuters reported. Hours after the US sanctioned dozens of Chinese entities and threatened to target an unspecified "major financial institution" for its dealings with Tehran, Beijing responded by saying its relationship with Iran "should not be disrupted or undermined," Bloomberg reported. China will take "all necessary measures" to safeguard its interests, Foreign Ministry spokesperson Lin Jian was cited as saying.

Front-month West Texas Intermediate crude oil fell 3.2% to $82.32 a barrel, and the global benchmark Brent crude contract dropped 4% to $88.49 a barrel. Henry Hub natural gas futures shed 0.7% to $2.76 per 1 million BTU.

In corporate news, Shell (SHEL) shares were down 0.6%. The company put its Aphrodite offshore gas project in Trinidad and Tobago on hold following commercial disagreements with the country's National Gas Co., Reuters reported.

Equinor (EQNR) plans to boost production outside Norway to 950,000 barrels of oil equivalent per day (boepd) by 2030, while generating $20 billion of free cash flow from 2026 to 2030, said the oil giant's Executive Vice President Philippe Mathieu on Tuesday. Equinor's production outside Norway was 750,000 boepd in Q2, up more than 10% in two years, despite exits from positions in Azerbaijan and Nigeria. Separately, Equinor sees its long-delayed Tanzania liquefied natural gas project as more attractive amid disruptions to energy flows through the Strait of Hormuz, Reuters reported Tuesday, citing the company. The $42 billion project could provide Asian customers with an alternative source of natural gas that is less exposed to Middle East geopolitical risks, the report said. Equinor shares were shedding 2.3%.

Energy Transfer (ET) was Smart Insider's stock pick of the week after Chair Kelcy Warren and Director James Perry bought company shares. Energy Transfer shares were fractionally lower.

Related Articles

Sectors

Sector Update: Energy Stocks Decline Monday

Energy stocks fell Monday with the NYSE Energy Sector Index dropping 0.9% and the State Street Energy Select Sector SPDR ETF (XLE) declining 0.8%.The Philadelphia Oil Service Sector Index fell 2%, and the Dow Jones US Utilities Index rose 1.3%.In geopolitical news, the US will remove any entity facilitating money laundering on Iran's behalf from the US dollar system as part of "Operation Economic Outcast," Treasury Secretary Scott Bessent said at a press conference. In addition, Bessent said the Treasury's Office of Foreign Assets Control is currently sanctioning over 60 entities, individuals and vessels assisting Iran, and he expects a "major announcement" of sanctions against a financial institution later this week.West Texas Intermediate crude oil fell 2.1% to $85.25 a barrel, and global benchmark Brent declined 2.2% to $92.28 a barrel. Henry Hub natural gas futures increased 0.2% to $2.78 per 1 million BTU.In corporate news, Chevron (CVX) said its EMEA subsidiary signed a production sharing agreement with Libya's National Oil Corp. Chevron shares declined 1.1%.Braskem (BAK) said its board approved the filing of an out-of-court restructuring petition covering the company and certain subsidiaries, involving about $10.9 billion in unsecured financial obligations, Braskem shares fell 7%.ExxonMobil (XOM) plans to expand automated drilling technology to half of its Permian Basin rig fleet by 2028, Reuters reported. Exxon shares fell 0.6%.Shell (SHEL) has drawn interest from potential bidders including ExxonMobil, LyondellBasell (LYB) and Apollo Global Management (APO) for its US chemicals assets, which could fetch up to $8 billion, the Financial Times reported. Shell shares fell 0.4%.

$BAK$CVX$SHEL$XOM
Sectors

Sector Update: Financial Stocks Advance Late Afternoon

Financial stocks were higher in late Monday afternoon trading, with the NYSE Financial Index rising 0.8% and the State Street Financial Select Sector SPDR ETF (XLF) ahead 1.1%.The Philadelphia Housing Index was up 0.2%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) added 0.3%.Bitcoin (BTC-USD) was rising 1.5% to $78,868, and the yield for 10-year US Treasuries fell 3.4 basis points to 4.70%.In economic news, the US will remove any entity facilitating money laundering on Iran's behalf from the US dollar system as part of "Operation Economic Outcast," Treasury Secretary Scott Bessent said Monday at a press conference. In addition, Bessent said the Treasury's Office of Foreign Assets Control is currently sanctioning over 60 entities, individuals and vessels assisting Iran, and he expects a "major announcement" of sanctions against a financial institution later this week.Separately, President Donald Trump said US tariffs on Canadian cars, trucks, auto parts and steel will rise to 50% next year, escalating trade tensions between the two countries after bilateral trade talks collapsed on Friday.The Chicago Federal Reserve Bank's monthly National Activity Index fell to minus 0.08 in July from 0.06 in June, compared with expectations for a smaller decrease to minus 0.05 in a Bloomberg survey.In corporate news, Strategy (MSTR) established USD Cash, a separate US dollar liquidity pool within its Digital Credit Capital Framework for future bitcoin treasury purposes, the bitcoin treasury firm said in a Monday regulatory filing. Strategy shares climbed 2.8%.Zillow (Z) shares gained 2.9% after it said Monday it has resolved a lawsuit brought by the US Federal Trade Commission and five states over its partnership with Redfin.Ares Management (ARES) led a $400 million private credit loan deal to facilitate CVC Capital Partners' acquisition of a stake in Chess.com, Bloomberg reported. Ares shares were down 0.9%.BlackRock (BLK) is gauging buying interest among rival managers, including Ares Management, for all $671 million of loans held by its TCP Capital private credit fund, Bloomberg reported. BlackRock shares rose 1.1%.

$ARES$BLK$MSTR$Z
Sectors

Sector Update: Tech Stocks Fall Late Afternoon

Tech stocks were lower late Monday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 1.5% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 3.1%.The Philadelphia Semiconductor index shed 2.4%.In corporate news, a senior Nvidia (NVDA) manager was indicted by Taiwanese prosecutors for allegedly organizing, along with eight others, the shipment of 74 servers containing high-end B300 chips into China by way of Japan and Indonesia in order to circumvent US trade restrictions, Bloomberg reported Monday. Separately, Nvidia customers are facing price increases of over 15% on servers equipped with its AI chips due to rising memory costs, Bloomberg reported Saturday. Shares were down 2.4%.RoboStrategy (BOT) shares fell 2.9% after the company released its first shareholder letter.Amazon-backed (AMZN) Anthropic could seek to raise over $100 billion in an initial public offering that could value the AI firm at about $2 trillion, The New York Times reported Friday. Amazon shares were rising 1.4%.Alibaba (BABA) has rolled out its Wan3.0 AI video generation tool, Reuters reported, citing a post on China's WeChat platform. The new model is able to produce 30-second videos from documents, spreadsheets, slides and web pages, the report said. Separately, Alibaba Chief Executive Eddie Wu bought 350,000 shares of the company for about $5 million, according to a regulatory filing. Shares eased 0.2%.

$AMZN$BABA$BOT$NVDA