Financial News · Live Terminal

Sector Update: Tech

Technology stocks were declining premarket Monday, with the State Street Technology Select Sector SPDR Fund (XLK) down 0.6% and the State Street SPDR S&P Semiconductor ETF (XSD) 0.8% lower.Sony (SONY), SoftBank, NEC and Honda Motor (HMC) have jointly established a new artificial intelligence company to develop a domestic AI foundation model for use by Japanese companies, multiple media outlets reported. Shares of Sony Group were down more than 2% pre-bell.

$HMC$SONY

Oil Pushes Back Above US$100 As U.S. And Iran Fail To Reach Peace Deal; U.S. Promises To Blockade Iran

Oil pushed back above the US$100 per barrel mark early Monday after the United States said it will blockade Iran's ports after weekend peace talks in Pakistan ended without an agreement to end hostilities.West Texas Intermediate crude oil for May delivery was last seen up US$7.18 to US$103.75 per barrel, while June Brent oil rose US$7.00 to US$102.20.Direct and indirect talks between Iran and the United States failed to reach an agreement, with Iran refusing to agree to U.S. demands that it end its uranium-enrichment program. In response to the unsuccessful negotiations, the United States said it will blockade Iran's ports and block any ships paying Iran for passage through the Strait of Hormuz. Iran responded by threatening attacks on ports in the Persian Gulf and Sea of Oman, according to the Wall Street Journal.Failure to reach a peace deal leaves the Strait of Hormuz closed to tanker traffic, continuing to block 20% of daily oil demand supplied by Persian Gulf nations. The largest-ever supply shock likely to be magnified by the oncoming high-demand summer season."Once again, high stakes negotiations between the US and Iran deadlocked over Washington's zero uranium enrichment demand, setting the stage for further escalation in the 6-week war and prolonged supply disruptions in advance of summer driving season," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, wrote."In the absence of a negotiated deal, the White House is essentially left with the option of a strategic retreat that would leave Iran with de facto control over the Strait or a military escalation aimed ateliminating the Tehran tollbooth."

Global Markets Are On Backfoot Monday After U.S.-Iran Talks Fail, Says Scotiabank

Global markets are on back foot to start the week given what was the largely predictable collapse of negotiations between Iran and the United States over the weekend, said Scotiabank.Oil prices are sharply higher with WTI and Brent futures gaining by about US$7 to US$8/barrel and trickling into other maturities, alongside increases in other commodity prices, noted the bank.Gold is off by about US$40/oz but was down by about US$100/oz early in the Asian session.The US dollar (USD) is firmer against other majors, but with Norway's krone (NOK) and Russia's ruble (RUB) gaining while the Canadian dollar (CAD or loonie) holds firm, both of which are outperforming other crosses due to higher commodities, stated Scotiabank.U.S. and Canadian equity futures are off by about 0.5%, which is fairly modest so far, but European cash markets are faring a little worse, pointed out the bank.Sovereign bond yields are higher by a handful of basis points across major markets and maturities, added Scotiabank. OIS is leaning toward a half point of Bank of Canada hikes over H2.

$CAD$CXY$NOK$RUB$USD

Brent Crude Up 7.7% at Near US$102.50 and NY Crude Up 8.2% at Near US$102.50

Crude Oil Prices Jump After U.S. Announced Strait of Hormuz Blockade, Lack of Ceasefire Deal

Crude oil prices surged on Monday after the U.S. announced it will start a blockade of the Strait of Hormuz, which followed a failure to reach a ceasefire deal with Iran.Brent crude at last look jumped 7.7% to US$102.54/barrel and West Texas Intermediate crude rose 8.2% to $104.44/barrel. This comes after U.S. President Donald Trump said the U.S. Navy is preparing to block ships to and from Iran via the Strait of Hormuz, which could restrict Iranian oil exports, Reuters said in a Monday report.Iran's Revolutionary Guard said any military vessels attempting to approach the strait would be considered a violation of the ceasefire and will be dealt with, the report said."The announced U.S. blockade marks an admission that the ceasefire's central premise - at least as interpreted by the U.S. - which was the reopening of the Strait, is untenable for now," Nordic bank SEB analyst Erik Meyersson was quoted as saying by Reuters.

$CLX1$LCOX1$USO

Sector Update: Financial Stocks Decline Friday

Financial stocks declined Friday with the NYSE Financial Index decreasing 0.6% and the State Street Financial Select Sector SPDR ETF (XLF) falling 1.1%.The Philadelphia Housing Index was little changed, and the State Street Real Estate Select Sector SPDR ETF (XLRE) rose 0.2%.Bitcoin (BTC-USD) rose 1.8% to $73,058, and the yield for 10-year US Treasuries rose 2.4 basis points to 4.317%.In economic news, US consumer inflation in March accelerated to its highest monthly reading in almost four years as the Middle East conflict drove energy prices higher. The consumer price index advanced 0.9% last month, the fastest pace of growth since June 2022, Bureau of Labor Statistics data showed, matching expectations from a Bloomberg survey of analysts. Prices rose 0.3% in February. Annually, inflation rose to 3.3% versus February's 2.4% increase, falling short of Wall Street's 3.4% projection.US consumer sentiment in April fell to the lowest ever, reflecting heightened worries about higher prices and the overall economic fallout from the Middle East conflict, the University of Michigan's preliminary survey showed. The main sentiment index plunged about 11% to 47.6 from March. Wall Street expected 51.5 print, according to a Bloomberg poll.In corporate news, KKR (KKR) and EQT AB are among private equity firms showing takeover interest in PolyPeptide Group, Bloomberg reported. KKR shares dropped 1.7%.Ares Management (ARES) is planning to launch a flagship US direct lending fund with a preliminary target of $20 billion, smaller than its previous record-breaking investment vehicle of $33.6 billion, Bloomberg reported. Ares shares fell 4.1%.Fair Isaac (FICO) shares dropped 14% after Barclays cut its price target on the stock to $1,950 from $2,400 while maintaining its overweight rating.Blackstone (BX) is mulling an initial public offering that could raise $2 billion for a firm that will acquire data centers, Bloomberg reported. Blackstone shares fell 1.8%.

$ARES$BX$FICO$KKR

Sector Update: Energy Stocks Mixed Late Afternoon

Energy stocks were mixed late Friday afternoon, with the NYSE Energy Sector Index fractionally higher and the State Street Energy Select Sector SPDR ETF (XLE) decreasing 0.9%.The Philadelphia Oil Service Sector Index was shedding 0.5%, and the Dow Jones US Utilities Index was down 0.4%.In sector news, oil prices stabilized at under $100 a barrel on Friday ahead of US-Iran talks in Pakistan as markets sought clarity on whether this weekend's huddle in Islamabad could lead to a long-term peace deal. Earlier in the week, the US and Iran agreed to a two-week ceasefire, pausing a war that had spread across the Middle East and curtailed shipments through the crucial Strait of Hormuz. Oil prices on Wednesday posted their sharpest one-day pullback since 2020 after the ceasefire announcement.Front-month West Texas Intermediate crude oil fell 2.3% to $95.58 a barrel, and the global benchmark Brent crude contract shed 1.7% to $94.39 a barrel. Henry Hub natural gas futures fell 1.1% to $2.64 per 1 million BTU.In corporate news, ConocoPhillips (COP) has sent a team to Venezuela to evaluate the prospects of oil drilling in the country, the company said in an emailed statement to. ConocoPhillips shares were down 1.2%.Shell (SHEL) confirmed in an email toon Friday that it is in talks with Venezuela to produce natural gas at the Loran-Manatee offshore field, which crosses the border of Venezuela and Trinidad and Tobago. The company expects to produce gas from Manatee in 2027 but has yet to take a final investment decision on the Loran field, according to a spokesperson. Shell shares were up 1.3%.The Port of Antwerp in Belgium, which is home to European refineries operated by Exxon Mobil (XOM) and TotalEnergies (TTE), was blocked following an oil spill during a ship refueling operation, preventing large vessels from entering or leaving the port, the port authority said Friday. Exxon shares shed 0.8%, and TotalEnergies was up 2.9%.EQT (EQT) and Glencore committed to acquiring an extra 1 million metric tons of liquefied natural gas annually from Commonwealth LNG through 20-year agreements, Reuters reported, citing a regulatory document. EQT shares were down 1.4%.

$COP$EQT$SHEL$TTE$XOM

Sector Update: Tech Stocks Gain Late Afternoon

Tech stocks were higher late Friday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) up 0.7% and the State Street SPDR S&P Semiconductor ETF (XSD) rising 2.4%.The Philadelphia Semiconductor index climbed nearly 3%.In corporate news, Amazon-backed (AMZN) Anthropic is exploring plans to design its own AI chips as it grapples with industry-wide shortages, Reuters reported. Amazon shares were up 2%.ServiceNow (NOW) shares fell 8.3%. The enterprise software company's competitive advantage may have eroded amid growing evidence that workflow automation tasks can be automated by harnessing AI models, UBS Securities said in a note. The brokerage downgraded its rating on the stock to neutral from buy and lowered its price target to $100 from $170.CoreWeave (CRWV) shares surged past 10% after the AI cloud computing company struck a deal to support the development and deployment of Anthropic's Claude AI models.Commvault Systems (CVLT) is exploring a sale after receiving takeover interest from multiple private equity firms and strategic buyers, Reuters reported. The data protection software provider is working with Goldman Sachs (GS) to weigh its options, the report said. Commvault shares popped 9%.

$AMZN$CRWV$CVLT$NOW

Sector Update: Health Care Stocks Fall Late Afternoon

Health care stocks declined late Friday afternoon, with the NYSE Health Care Index falling 1.1% and the State Street Health Care Select Sector SPDR ETF (XLV) dropping 1.4%.The iShares Biotechnology ETF (IBB) shed 1.7%.In corporate news, AbbVie (ABBV) is expected to report Q1 earnings within its guidance range, but that may not be enough to improve sentiment toward the drugmaker, RBC Capital Markets said in a client note. The brokerage expects AbbVie to report per-share earnings of $2.59 for the first quarter, while the current consensus on FactSet is for non-GAAP EPS of $2.83. AbbVie shares were down 2.1%.Replimune (REPL) shares tumbled 19%. The company's biologics license application for vusolimogene oderparepvec to treat unresectable advanced cutaneous melanoma was rejected by the US Food and Drug Administration, the regulator said in a complete response letter.Abbott Laboratories (ABT) has been ordered by a jury in Chicago to pay $53 million in compensatory damages to a group of families related to four cases over its infant formula, the Chicago Tribune reported. The families accused the company of allegedly failing to inform them that its infant formula could develop a dangerous intestinal disease in premature infants, the report said. Abbott shares fell 2.7%.Organon (OGN) is closing in on a deal to be acquired by Sun Pharmaceutical Industries for $12 billion, The Economic Times reported. Organon shares surged 27%.

$ABBV$ABT$OGN$REPL

Sector Update: Consumer Stocks Softer Late Afternoon

Consumer stocks were lower late Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 1.4% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) decreasing 0.1%.In sector news, US consumer sentiment hit the lowest on record this month, reflecting heightened worries about higher prices and the overall economic fallout from the Middle East conflict, University of Michigan's preliminary survey showed Friday. The main sentiment index plunged about 11% to 47.6 in April from March. That's the lowest print on record, BMO Capital Markets said in a note. Wall Street expected a 51.5 print, according to Bloomberg's poll.In corporate news, Nike (NKE) Chief Innovation Officer Tony Bignell is leaving the company after less than a year on the job, The Wall Street Journal reported. Bignell will be succeeded by Andy Caine, Nike vice president and creative director for sportswear, effective Sunday, the report said. Nike shares fell 3.4%.Nexstar Media's (NXST) $6.2 billion merger with Tegna is facing fresh hurdles after a federal judge extended the restraining order on the deal by one week to April 17 to review whether a longer preliminary injunction is needed, the Associated Press reported Friday. Nexstar shares were up 2.8%.Simply Good Foods (SMPL) shares fell 11% after Stephens downgraded the company's rating to equal-weight from overweight and cut its price target to $14 from $24.CarMax (KMX) shares rose 2.3% after it said late Thursday it plans to add William Cobb and James Kessler to its board following "constructive engagement" with activist investor Starboard Value.

$KMX$NKE$NXST$SMPL

Sector Update: Energy

Energy stocks declined late Friday afternoon, with the NYSE Energy Sector Index easing 0.1% and the State Street Energy Select Sector SPDR ETF (XLE) decreasing 0.8%.The Philadelphia Oil Service Sector Index was shedding 0.5%, and the Dow Jones US Utilities Index was down 0.4%.Front-month West Texas Intermediate crude oil fell 2.3% to $95.58 a barrel, and the global benchmark Brent crude contract shed 1.7% to $94.39 a barrel. Henry Hub natural gas futures fell 1.1% to $2.64 per 1 million BTU.In corporate news, ConocoPhillips (COP) has sent a team to Venezuela to evaluate the prospects of oil drilling in the country, the company said in an emailed statement to. ConocoPhillips shares were down 1.1%.

$COP

Sector Update: Financial

Financial stocks were lower late Friday afternoon, with the NYSE Financial Index decreasing 0.4% and the State Street Financial Select Sector SPDR ETF (XLF) falling 1%.The Philadelphia Housing Index was down 0.4%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was shedding 0.2%.Bitcoin (BTC-USD) was increasing 1.8% to $73,058, and the yield for 10-year US Treasuries rose 2.4 basis points to nearly 4.32%.In corporate news, KKR (KKR) and EQT AB are among private equity firms showing takeover interest in PolyPeptide Group, Bloomberg reported. KKR shares were down 2%.

$KKR

Sector Update: Health Care

$ABBV

Sector Update: Tech

$AMZN

Sector Update: Consumer

Consumer stocks were lower late Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 1.4% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) decreasing 0.1%.In corporate news, Nexstar Media's (NXST) $6.2 billion merger with Tegna is facing fresh hurdles after a federal judge extended the restraining order on the deal by one week to April 17 to review whether a longer preliminary injunction is needed, the Associated Press reported Friday. Nexstar shares were up 3.4%.

$NXST

Update: WTI Oil Closes Lower Amid a Shaky Ceasefire Between the U.S. and Iran

West Texas Intermediate (WTI) crude oil closed lower on Friday amid doubts over the state of the ceasefire between Iran and the United States as Israel continues its attacks on Lebanon and the Strait of Hormuz remains closed.WTI crude oil for May delivery closed down US$1.30 to settle at US$96.57 per barrel, while June Brent oil was last seen down US$0.60 to US$95.32.A fragile two-week ceasefire for the United States' war on Iran reached this week looked more uncertain on Friday as Iran is said to be refusing to attend peace talks scheduled to be held this weekend in Pakistan as long as Israel continues its attacks on Lebanon. Reports on Thursday said Israeli Prime Minister plans to open talks with Lebanon but its attacks on Hezbollah militants in the country continue."Western outlets have reported that the Iranian delegation has already arrived in-country while some Iranian outlets dispute this claim, continuing to suggest that the talks are conditional on a ceasefire with Lebanon where Israel / Hezbollah continue to trade strikes," Tudor, Pickering, Holt analyst Matt Portillo wrote.Iran continues to block the passage of tankers stranded in the Persian Gulf through the Strait of Hormuz, the choke point for exports from the region that supplies 20% of daily oil demand. The closure of the Strait has pushed oil futures up 41% since the start of the conflict, but spot prices have risen even more, reaching a record high this week as buyers hunt for supply."The physical market remains relatively supported as traders resist significant revisions in differentials in the near term, largely opting for a "show me" mentality despite speculation over the future of Strait of Hormuz transits swirling in oil markets. While Dated (spot) Brent trimmed from Tuesday's all-time record of $144.42/bbl (assessed at $124.68/bbl on April 8) and Middle Eastern cash differentials waned, Atlantic Basin crudes have continued to see strength as limited prompt availability of cargoes remains," Christopher Louney, a commodities strategist at RBC Capital Markets, wrote.

May WTI Crude Oil Contract Closes Down US$1.30; Settles at US$96.57 per Barrel

Sector Update: Energy Stocks Lower Friday Afternoon

Energy stocks declined Friday afternoon, with the NYSE Energy Sector Index fractionally lower and the State Street Energy Select Sector SPDR ETF (XLE) decreasing 0.8%.The Philadelphia Oil Service Sector Index was shedding 0.7%, and the Dow Jones US Utilities Index was down 0.1%.In sector news, President Donald Trump said Friday in a phone interview with the New York Post that US warships are being restocked with ammunition in order to resume strikes should peace talks with Iran falter this weekend.Front-month West Texas Intermediate crude oil was rising 0.6% to $98.39 a barrel, and the global benchmark Brent crude contract was advancing 0.7% to $96.70 a barrel. Henry Hub natural gas futures fell 0.8% to $2.65 per 1 million BTU.In corporate news, Shell (SHEL) confirmed in an email toon Friday that it is in talks with Venezuela to produce natural gas at the Loran-Manatee offshore field, which crosses the border of Venezuela and Trinidad and Tobago. The company expects to produce gas from Manatee in 2027 but has yet to take a final investment decision on the Loran field, according to a spokesperson. Shell shares were up 0.8%.The Port of Antwerp in Belgium, which is home to European refineries operated by Exxon Mobil (XOM) and TotalEnergies (TTE), was blocked following an oil spill during a ship refueling operation, preventing large vessels from entering or leaving the port, the port authority said Friday. Exxon shares fell 1.6%, and TotalEnergies was up 1.8%.EQT (EQT) and Glencore committed to acquiring an extra 1 million metric tons of liquefied natural gas annually from Commonwealth LNG through 20-year agreements, Reuters reported, citing a regulatory document. EQT shares were down 1.1%.

$EQT$SHEL$TTE$XOM