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Sector Update: Health Care

Health care stocks were mixed premarket Tuesday, with the State Street Health Care Select Sector SPDR ETF (XLV) gaining by 0.7% and the iShares Biotechnology ETF (IBB) unchanged.Novartis (NVS) shares retreated 0.6% pre-bell after the company reported lower Q1 core earnings and net sales.

$IBB$NVS$XLV

Sector Update: Tech

Technology stocks were lower pre-bell Tuesday, with the State Street Technology Select Sector SPDR ETF (XLK) retreating by 2.2% and the State Street SPDR S&P Semiconductor ETF (XSD) falling 3.3%.Microsoft (MSFT) was down more than 1% premarket after Raymond James and BMO Capital cut their price targets for the company. The Wall Street Journal reported that Microsoft-backed OpenAI recently missed its own targets for new users and revenue.

$MSFT$XLK$XSD

Sector Update: Consumer

Consumer stocks were mixed premarket Tuesday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) advancing 0.8% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) retreating 0.7%.Coca-Cola Company (KO) shares rose more than 2% after the company reported higher Q1 adjusted earnings and revenue.

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Oil Prices Jump as Progress on Ending the Iran War Stalls

Oil prices were sharply higher early on Tuesday, with the U.S. benchmark price rising back above US$100 per barrel for the first time in three weeks as hopes for an end to the war on Iran fade and the Strait of Hormuz remains closed.West Texas Intermediate crude oil for June delivery was last seen up US$4.94 to US$101.31 per barrel, the highest since April 7, while June Brent oil was up US$3.66 to US$111.89.Weekend talks expected to be held in Pakistan between Iran and the United States failed to take place, while a Monday proposal from Iran to reopen the Strait of Hormuz in return for lifting a U.S. blockade of its ports and deferring talks over its nuclear program was rejected by President Trump.Iran closed the Strait of Hormuz after the United States and Israel launched attacks on the country on Feb. 28. The Strait is the chokepoint for 20% of daily global oil demand supplied by Persian Gulf nations and its closure has produced the largest-ever supply shock, pushing up oil prices by 44% since the start of the war."Oil extended its rally ... amid no signs of progress toward reopening the Strait of Hormuz, where US and Iranian blockades have reduced daily transits to near zero. Warnings over the severity of the global supply squeeze continue to intensify, with tightness in refined fuel markets already pushing diesel and jet fuel prices toward USD 200 per barrel," Saxo Bank noted.The closure of the Strait has pushed up spot price for oil, as the Asian nations that rely on Gulf producers compete for available barrels. Rising prices have heightened inflation and raises the risk of a global recession as the lack of supply forces demand destruction and chokes off economic growth."Alarm bells will ring loudly if the SoH (Strait of Hormuz) doesn't reopen during May. Spot crude and product prices will trade higher and higher. And if a decent reopening doesn't take place before June/July, then the risk is significant for a real crisis where the world may be forced to reduce its oil consumption closer to the level of availability," Bjarne Schieldrop, Chief analyst commodities at SEB Research, wrote.

Brent Crude Up 3.1% at US$111.55 and NY Crude Up 3.6% at Near US$99.90

U.S. Crude Oil Stocks Likely Fell 2.0 Million Barrels in Week Ended April 24, Macquarie Says

U.S. crude oil inventories are forecast to have fallen 2.0 million barrels in the week ended April 24, following an increase of 1.9 million barrels in the prior week, Macquarie said in a Monday note.From refineries, crude runs are expected to have increased 0.1 million barrels per day. Net imports are projected to have sharply declined, with exports up 1.3 million barrels per day and imports up 0.1 million barrels per day, Macquarie said.Implied domestic supply is expected to have risen 0.3 million barrels per day. Strategic petroleum reserves are forecast to have dropped 7.1 million barrels, according to Macquarie.Gasoline stocks are forecast to have decreased 4.0 million barrels, while distillate stockpiles are expected to have fallen 2.4 million barrels. Jet stocks, meanwhile, are projected to have gained 0.8 million barrels. Implied domestic demand for these three products are projected at 14.4 million barrels per day, Macquarie said.

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Crude Oil Prices Jump Amid Stalled Talks Between U.S., Iran

Crude oil prices surged on Tuesday as stalled peace talks between the U.S. and Iran fueled market concerns about prolonged disruptions in supply flows through the Strait of Hormuz.Brent crude at last look rose 2.8% to US$111.23/barrel and West Texas Intermediate crude climbed 3.1% to $99.31/barrel. U.S. President Donald Trump is not satisfied with Iran's latest proposal to end the war, leaving the conflict deadlocked, Reuters said in a Tuesday report, citing an unnamed U.S. official.Iranian sources reported that it avoided addressing the nuclear program until hostilities cease and Gulf shipping disputes are resolved, the report said."With peace talks stalled and no clear path to reopening the Strait of Hormuz, traders are factoring in a prolonged disruption to a critical artery of global supply," Reuters quoted Rystad Energy analyst Jorge Leon as saying."Even in a best-case scenario, any US-Iran agreement is likely to be narrow and partial, leaving the Strait issue unresolved, which means the upside risks to prices remain," Leon added.

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Sector Update: Financial Stocks Rise Late Afternoon

Financial stocks were advancing in late Monday afternoon trading, with the NYSE Financial Index increasing 0.6% and the State Street Financial Select Sector SPDR ETF (XLF) adding 0.8%.The Philadelphia Housing Index rose 0.4%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was decreasing 0.8%.Bitcoin (BTC-USD) was falling 2.6% to $76,605, and the yield for 10-year US Treasuries was rising 2.6 basis points to 4.336%.In economic news, the Dallas Fed's monthly manufacturing index fell to minus 2.3 in April from minus 0.2 in March, compared with expectations for a 0.8 print. The index indicates faster contraction, in contrast with other regional manufacturing readings already released.In corporate news, First Bancorp (FBP) shares gained 3.6% in Monday trading after Raymond James upgraded the company's stock to strong buy from outperform and raised its price target to $27 from $26.Investors in a Blue Owl Capital (OWL) business development company tendered less than 1% of shares to Boaz Weinstein's Saba Capital Management and Cox Capital Partners, which had offered to buy them out at a significant discount, Bloomberg reported. Blue Owl Capital shares were down 2.3%.Citigroup (C) plans to strengthen its investment banking divisions in Japan and China by recruiting upper-level executives to capture additional buyout opportunities, Reuters reported, citing the firm's regional division head, Kaustubh Kulkarni. Citi shares added 1%.Oppenheimer (OPY) shares climbed 4.9% after the company said its Oppenheimer & Co. unit agreed to pay $70 million to settle a class-action lawsuit tied to its cash sweep program, avoiding a trial where damages could have exceeded $440 million.

$C$FBP$OPY$OWL

Sector Update: Health Care Stocks Softer Late Afternoon

Health care stocks fell late Monday afternoon with the NYSE Health Care Index easing 0.2% and the State Street Health Care Select Sector SPDR ETF (XLV) losing 0.3%.The iShares Biotechnology ETF (IBB) shed 0.4%.In corporate news, Eli Lilly (LLY) agreed to acquire Ajax Therapeutics for up to $2.3 billion in cash. The deal includes an upfront payment and subsequent payouts based on the achievement of clinical and regulatory milestones. Lilly shares fell 1.6%.HCA Healthcare (HCA) may face pressure through at least H1 as investors rotate toward managed care, although better trends in March and in-line exchange dynamics support the longer-term outlook, RBC Capital Markets said. HCA Healthcare shares rose 3.2%.Organon (OGN) shares jumped 17% after the company agreed to be acquired by India's Sun Pharmaceutical Industries for $14 a share in cash, valuing the company at $11.75 billion.Moderna (MRNA) is facing a patent infringement lawsuit from CureVac, which alleged that Moderna's COVID-19 vaccine Spikevax used its proprietary mRNA technology without authorization, Reuters reported Saturday. Moderna shares fell 4.7%.

$HCA$LLY$MRNA$OGN

Sector Update: Energy Stocks Mixed Late Afternoon

Energy stocks were mixed late Monday afternoon, with the NYSE Energy Sector Index fractionally higher and the State Street Energy Select Sector SPDR ETF (XLE) little changed.The Philadelphia Oil Service Sector Index was adding 0.9%, and the Dow Jones US Utilities Index increased 0.1%.Front-month West Texas Intermediate crude oil rose 2% to $96.31 a barrel, and the global benchmark Brent crude contract advanced 2.5% to $107.98 a barrel. Henry Hub natural gas futures added 1.2% to $2.55 per 1 million BTU.In corporate news, US Energy (USEG) shares jumped 20% after it said Monday it has signed a five-year helium sales agreement with an unnamed investment-grade global industrial gas company, securing long-term contracted cash flow for its Big Sky Carbon Hub project in Montana ahead of targeted Q1 2027 operations.Shell (SHEL) agreed to buy Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of $16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin. Shell shares were down 2.4%.The UK's Seagreen wind farm, which is 25.5%-owned by TotalEnergies (TTE), has delayed a fixed-price government contract, preferring to sell electricity at higher market rates, Bloomberg reported Monday, citing data that it compiled. TotalEnergies shares were decreasing 0.7%.Greenland Energy (GLND) said Monday it has signed an agreement with Halliburton (HAL) for integrated consulting services and logistical management related to the planning and transportation of equipment and services. Greenland shares were down 12%, and Halliburton shed 0.5%.

$GLND$HAL$SHEL$TTE$USEG

Sector Update: Tech Stocks Slide Late Afternoon

Tech stocks declined late Monday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) fractionally lower and the State Street SPDR S&P Semiconductor ETF (XSD) falling 3.2%.The Philadelphia Semiconductor index dropped 1.4%.In corporate news, Advanced Micro Devices (AMD) shares fell 3.4% after Northland downgraded the company's stock to market perform from outperform.The European Commission on Monday proposed measures that would require Alphabet's (GOOGL) Google to open its Android ecosystem to rival AI services and launched a public consultation under the EU's Digital Markets Act. Alphabet shares were up 2.1%.Microsoft (MSFT) and OpenAI have amended their partnership under which the tech giant will no longer pay a revenue share to the ChatGPT maker, among other things, with Wedbush Securities calling the development a net positive for Microsoft. Microsoft shares rose 0.3%.Meta Platforms' (META) $2 billion acquisition of AI startup Manus was blocked by China's National Development and Reform Commission, media outlets reported Monday, citing the Chinese regulator. Meta shares were up 0.6%.

$AMD$GOOGL$META$MSFT

Sector Update: Consumer Stocks Fall Late Afternoon

Consumer stocks fell late Monday afternoon with the State Street Consumer Staples Select Sector SPDR ETF (XLP) declining 1% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) shedding 0.6%.In corporate news, United Airlines (UAL) CEO Scott Kirby confirmed he approached rival American Airlines (AAL) about a possible merger, and American declined to engage, closing the door on a deal. Separately, American is selling $1.14 billion of bonds financing a group of planes, Bloomberg reported. United shares fell 1.2%, and American dropped 3%.Domino's Pizza (DPZ) reported weaker-than-expected Q1 results on Monday, with the company's CEO saying consumer uncertainty and inflation weighed on demand late in the quarter. Its shares slumped past 9%.Verizon Communications (VZ) lifted its full-year earnings outlook on Monday and reported a Q1 bottom line above market estimates, while it unexpectedly added postpaid phone subscribers in the three-month period. Its shares rose 1.2%.Toyota Motor (TM) reported Monday total worldwide sales of 897,871 vehicles in March, down 7.3% from a year earlier. Toyota shares were fractionally higher.

$AAL$DPZ$TM$UAL$VZ

Sector Update: Financial

$OWL

Sector Update: Energy

Energy stocks edged down late Monday afternoon, with the NYSE Energy Sector Index and the State Street Energy Select Sector SPDR ETF (XLE) both fractionally lower.The Philadelphia Oil Service Sector Index was adding 0.9%, and the Dow Jones US Utilities Index increased 0.1%.Front-month West Texas Intermediate crude oil rose 2% to $96.31 a barrel, and the global benchmark Brent crude contract advanced 2.5% to $107.98 a barrel. Henry Hub natural gas futures added 1.2% to $2.55 per 1 million BTU.In corporate news, US Energy (USEG) shares jumped 25% after it said Monday it has signed a five-year helium sales agreement with an unnamed investment-grade global industrial gas company, securing long-term contracted cash flow for its Big Sky Carbon Hub project in Montana ahead of targeted Q1 2027 operations.

$USEG

Sector Update: Health Care

Health care stocks were lower late Monday afternoon with the NYSE Health Care Index easing 0.2% and the State Street Health Care Select Sector SPDR ETF (XLV) decreasing 0.3%.The iShares Biotechnology ETF (IBB) shed 0.5%.In corporate news, HCA Healthcare (HCA) may face near-term pressure through at least the first half as investors rotate toward managed care, although better trends in March and in-line exchange dynamics support the longer-term outlook, RBC Capital Markets said. RBC reiterated its outperform rating and lowered its price target to $534 from $593. HCA Healthcare shares were up 2.3%.

$HCA

Sector Update: Tech

$AMD

Sector Update: Consumer

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Update: WTI Oil Rises as Expected Talks Between Iran and the U.S. Fail to Take Place

West Texas Intermediate (WTI) crude oil closed higher Monday as talks expected to be held over the weekend between the United States and Iran in Pakistan didn't happen, even as Iran offered to reopen the Strait of Hormuz in return for it being allowed to continue its nuclear program and the U.S. ending the blockade of its ports.WTI oil for June delivery closed up US$1.97 to settle at US$96.37 per barrel, while June Brent oil was last seen up US$3.13 to US$108.46.Iran closed the Strait of Hormuz after the United States and Israel launched attacks on the country on Feb. 28. The Strait is the chokepoint for 20% of daily global oil demand supplied by Persian Gulf nations and its closure has produced the largest-ever supply shock, pushing up oil prices by 41% since the start of the war.Talks expected to be staged in Islamabad over the weekend were cancelled as negotiators failed to turn up, though a ceasefire held as the war enters its third month."With face to face negotiations failing to materialize in Islamabad despite the market hour headlines pointing to progress in the talks, it seems that neither side feels sufficient pressure to make serious concessions. For eight weeks, the White House has been exceedingly successful in deploying the "over soon" message to keep a lid on front month prices," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, wrote.The Guardian on Monday reported Iran is offering to end its chokehold on the Strait in return for an end to the U.S. blockade, and without addressing concerns around its nuclear program, which U.S. President Trump has made a key demand for ending the war. The paper said the proposal was passed to the United States by Pakistan.

June WTI Crude Oil Contract Closes Up US$1.97; Settles at US$96.37 per Barrel