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Sector Update: Energy Stocks Rise Premarket Tuesday

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Energy stocks were rising premarket Tuesday, with the State Street Energy Select Sector SPDR ETF (XLE) up 1.1%.

The United States Oil Fund (USO) was up 3% and The United States Natural Gas Fund (UNG) was 2% lower.

Front-month US West Texas Intermediate crude oil was 3.2% higher at $101.25 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 3.2% to $107.49 per barrel, and natural gas futures were down 1.7% at $2.86 per 1 million British Thermal Units.

Venture Global (VG) shares were up more than 7% after the company reported higher Q1 earnings and revenue.

Petrobras (PBR) stock was down more than 1% even after the company posted higher Q1 net income and sales revenue.

Shell (SHEL) plans to divest its gas station network in France, according to a Google translation of a Monday report from French newspaper Les Echos. Shell shares were up 0.2% premarket.

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Natural Gas Falls as Rising Production Offsets Warming Forecasts

Natural gas traded lower early Tuesday despite warm forecasts as production continues to rise. Gas for June delivery was last seen down $0.04 to US$2.87 per million British thermal units.Long-term forecasts from the National Weather Service expect nearly all states to see warmer than seasonal temperatures over its six to 14 day outlook, offering some cooling demand amid the spring shoulder season.However production continues to rise, boosting inventories of the fuel and limiting prices."U.S. production continues to trend higher, supported by solid shale output and rising associated gas volumes from oil directed drilling, particularly in the Permian Basin....Combined with relatively mild winter weather, this has left inventories in a comfortable position," TD Economics wrote.

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Sector Update: Financial Stocks Edge Higher Pre-Bell Tuesday

Financial stocks were edging higher pre-bell Tuesday, with the State Street Financial Select Sector SPDR ETF (XLF) advancing by 0.1%.The Direxion Daily Financial Bull 3X Shares (FAS) was 0.7% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.3%.EToro (ETOR) stock was up 0.4% after the company reported an increase in Q1 adjusted earnings.CME Group (CME) said it is partnering with Silicon Data to launch a compute futures market later this year, pending regulatory review. Shares of CME Group were 0.8% higher premarket.Goldman Sachs' (GS) private equity business within Goldman Sachs Alternatives acquired FGI Worldwide, the company said. Goldman Sachs stock was down 0.2% pre-bell.

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Gold Trading Lower as USD and Yields Rise as U.S. Inflation Surged Last Month

Gold moved lower early Tuesday, dropping for a second day as the dollar and yields rose after the United States reported inflation continued to surge last month on higher energy prices that followed the war on Iran. Gold for June delivery was last seen down $28.80 to US$4,700.50 per ounce.The U.S. Bureau of Labor Statistics reported the April Consumer Price Index (CPI) rose at a 3.8% annualized pace, up from 3.3% in March, but matching expectations according to Marketwatch.Core CPI, excluding food and energy costs, rose 2.8%, up from 2.6% a month earlier, and above consensus estimates for a 2.7% rise.The rise comes as the Strait of Hormuz has been blocked since Feb. 28, when the United States and Israel launched the war on Iran, keeping 20% of daily oil demand supplied by Persian Gulf nations from the market, creating the largest-ever energy supply shock and raising oil prices by nearly half.Rising energy costs have raised concerns central banks will raise interest rates to slow inflation, sending investors to bonds and the dollar and keeping gold rangebound."Gold's rally has paused as higher real rates cap upside, but ongoing geopolitical risks and solid central-bank demand should provide downside support," TD Economics wrote.The dollar rose following the CPI report, with the ICE dollar index last seen up 0.29 points to 98.25. Treasury yields also rose, with the yield on the U.S. two-year note up 2.5 basis points to 3.994%, while the 10-year note was paying 4.446%, up 3.3 points.

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