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Sector Update: Financial

Financial stocks were advancing in late Monday afternoon trading, with the NYSE Financial Index rising 0.6% and the State Street Financial Select Sector SPDR ETF (XLF) increasing 0.1%.The Philadelphia Housing Index shed 1.1%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) gained 1.3%.Bitcoin (BTC-USD) was adding 1.7% to $64,364, and the yield for 10-year US Treasuries rose 5.8 basis points to 4.509%.In corporate news, Carlyle (CG) is working with its portfolio managers to proactively evaluate and then possible de-risk assets from weather-related damages, Bloomberg reported. Carlyle shares were fractionally lower.

$CG

California Consumers Sue Fuel Retailers Over Alleged AI Pricing Scheme

A group of California consumers filed a lawsuit on Monday alleging that an artificial intelligence-driven pricing system used by major fuel retailers drove gasoline prices higher statewide by reducing competition and enabling coordinated pricing.The complaint targets pricing technology developed by Kalibrate and its fuel retailing clients, including Marathon Petroleum (MPC), 7-Eleven, Walmart (WMT), Circle K, BP (BP), TravelCenters of America, and Albertsons, among others.Consumers argue in the filing that Kalibrate's "Fuel Pricing" platform functions as an algorithmic pricing system that integrates competitive market data from nearby fuel stations and recommends retail prices.The plaintiffs allege that the system reduces price competition among retailers by encouraging simultaneous price increases across markets.The filing claims that historically, California fuel stations competed by undercutting rivals on price, but that dynamic has shifted as retailers increasingly rely on algorithmic pricing tools.It alleges that the system enables coordinated pricing responses across competing stations, including what it describes as "market-wide restorations," in which multiple stations raise prices simultaneously.The plaintiffs further allege that participating fuel retailers have adopted a "price-over-volume" strategy facilitated by the software, resulting in elevated profit margins while consumers face higher pump prices.California gasoline prices have at times approached $7 per gallon amid global energy volatility, though the complaint argues that crude oil costs, refining expenses, regulation or taxes cannot fully explain local surcharges.The filing estimates that even a one-cent increase in per-gallon fuel prices in California could translate into about $134 million in additional annual consumer costs, given the state's fuel consumption.Price: $247.24, Change: $+4.33, Percent Change: +1.78%

$BP$MPC$WMT

US Crude Stocks Seen Falling 1.9 Million Barrels on Robust Exports, Macquarie Says

Weekly US crude inventory data from the Energy Information Administration is forecast to show a 1.9-million-barrel draw for the week ending June 19, Macquarie strategists said in a weekly note on Monday, following an 8.3 mmbbls draw the previous week.Crude runs are projected to drop by about 200,000 barrels per day during the week. Crude exports are projected to rise by 500,000 b/d, while imports are projected to increase by 800,000 b/d."Timing of cargoes remains a source of potential volatility in the weekly crude balance," Macquarie strategists said.Macquarie projected that domestic supply, which includes production, adjustments, and transfers, rose by 400,000 b/d for the week ended June 19, while stocks in the Strategic Petroleum Reserve decreased by 9.1 million bbls.On the products front, gasoline inventories are forecast to rise by 400,000 b/d, 900,000 b/d for distillate inventories and 800,000 b/d for jet fuel stocks.Macquarie forecasts the combined implied demand for gasoline, distillates, and jet fuel at about 14.5 mmb/d.

Accenture's Fiscal Q3 Earnings Beat Offset by Weaker-Than-Expected Bookings, UBS Says

Accenture's (ACN) fiscal Q3 earnings per share beat and capital return were offset by weaker-than-expected bookings and moderate growth amid ongoing market volatility, UBS Securities said.Bookings declined to $19.3 billion from $19.7 billion a year earlier. The company raised the low end of its fiscal 2026 EPS guidance to $13.78 to $13.90 from $13.65 to $13.90. Furthermore, it lowered the high end of its revenue growth guidance to 3% to 4% from 3% to 5%, according to the note Thursday.Free cash flow guidance was unchanged at $10.8 billion to $11.5 billion and capital return was raised to at least $9.5 billion from about $9.3 billion.Accenture reported a majority stake in Dragos and acquired runZero and NetRise for about $4.18 billion earlier this month. UBS said the deals increase the company's fiscal 2026 inorganic contribution to $9 billion from $5 billion.UBS forecasts fiscal Q4 EPS at $3.24, compared with Street consensus of $3.28.UBS has a buy rating on Accenture with a price target of $320.Shares of the company fell nearly 7% in late Monday afternoon trading.Price: $119.53, Change: $-8.45, Percent Change: -6.60%

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US Interior Unveils Oil and Gas Rule Changes to Ease Federal Leasing

The US Department of the Interior announced Monday proposed changes to federal oil and gas leasing and waste prevention rules aimed at lowering costs, reducing regulatory burdens and supporting domestic energy production.The department plans to replace the Biden-era statewide bonding requirement of $500,000 with the previous $25,000 standard while it seeks public input on a longer-term approach, according to the announcement.The department also expects revisions to the waste prevention rule to reduce compliance costs by nearly $17 million per year, while simplifying requirements and improving transparency.Bloomberg estimated that the change represents a 95% reduction in the statewide bonding requirement for oil and gas operators."These targeted updates cut through the red tape that has historically deterred investment, ensuring our public lands remain a reliable engine for economic growth and innovation," Secretary of the Interior Doug Burgum said.The proposed rule would allow companies to obtain leases without an auction and would remove the review process previously required before land could be offered for lease.DOI also plans to shorten public participation periods for lease actions from 90 days to 10 days, while seeking feedback on current bond levels and on updating filing fees.The proposal would also allow replacement lease sales when prior offerings are delayed or canceled and would limit lease suspension approvals to 1 year, with revised timing requirements.Separately, the waste prevention proposal would remove waste minimization plans and self-certification requirements from permit-to-drill applications, according to the department.The rule would also replace subjective evaluations with defined royalty standards and establish clearer definitions for avoidable and unavoidable losses, venting, flaring, emergencies, and measurement requirements.Interior said combining the revisions into a single rulemaking would provide greater clarity for operators. The agency also plans to rename the regulation "Royalty for Oil and Gas Lost from Onshore Federal and Indian Leases."Publication of the proposals in the Federal Register will begin a 60-day public comment period. The department said the changes support broader efforts under Executive Order 14154, Secretary's Order 3418 and the Working Families Tax Cuts Act to expand domestic energy production.

TE Connectivity Shares Fall After Evercore ISI Downgrade

TE Connectivity (TEL) shares fell 2.5% on Monday after Evercore ISI downgraded the stock to inline from outperform, and cut its price target to $230 per share from $260.Trading volume stood at nearly 1.4 million shares compared with a daily average of over 2.6 million.Price: $212.14, Change: $-5.51, Percent Change: -2.53%

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Oil & Energy38d ago

Middle East Supply Losses Top 1.2 Billion Barrels as Recovery Takes Shape, Kpler Says

Middle Eastern oil supply could return faster than expected as tanker movements improve and producers prepare to restore output, Kpler said in a Monday note.Recent Israeli strikes have delayed the formal signing of a memorandum of understanding between the US and Iran, while renewed attacks in southern Lebanon added fresh uncertainty to negotiations, according to Kpler.Switzerland's Foreign Ministry said US-Iran talks had been postponed. At the same time, reports indicated the US lifted its naval blockade on Iranian shipping, creating conditions for a gradual recovery in exports.Cargo-tracking data showed more Iranian-linked tankers transiting the Strait of Hormuz with AIS active. A few very large crude carriers reappeared on tracking systems after extended periods of limited visibility.Kpler estimates that over 10 million barrels per day of Middle Eastern crude and condensate production remained offline as of June 19, resulting in cumulative losses exceeding 1.2 billion barrels.Kuwait may restore production faster than expected after Kuwait Petroleum said it aims to increase output by 2 million b/d within one week.Kpler estimates Kuwaiti production could rise from about 950,000 b/d in June to 2 million b/d in July and nearly 2.4 million b/d in August, compared with pre-war output of 2.74 million b/d.Kpler said limited storage, with inventories near 50% capacity, and the availability of tanker vessels could support a quicker recovery in Kuwaiti exports, although prolonged restrictions in the Strait of Hormuz could slow the pace.Iran could also recover output rapidly if export restrictions continue to ease. Kpler estimates that Iranian crude production fell by as much as 1.3 million b/d during the blockade, largely because exports stopped rather than because oil fields were damaged.The firm expects Iran's crude production to reach 3.4 million b/d by August, exceeding pre-conflict levels of 3.2 million b/d to 3.3 million b/d. Kpler said Iran's export system can recover more quickly than many neighboring producers once shipping routes normalize.Saudi Arabia and the UAE could return to pre-conflict production levels within several weeks to two months. Saudi inventories remain about 55% full, while UAE inventories stand near 44%, allowing both countries to support exports while tanker traffic recovers.Kpler expects Middle Eastern crude and condensate outages to fall to roughly 1.2 million b/d by the end of August. The firm forecasts Saudi Arabia and the UAE will return to pre-war production levels by August, while Iraq and Kuwait should recover by November.

Update: WTI Oil Trading Near Four-Month Low as Talks Between US, Iran Progress

(Updates prices in the second paragraph and adds detail on the US waiver for Iranian exports in paragraph four.)West Texas Intermediate (WTI) closed at the lowest in more than three months on Monday as talks between Iran and the United States are progressing, raising hopes the Strait of Hormuz could fully reopen and allow Persian Gulf energy exports to flow more freely, and the United States lifted sanctions on Iran's oil exports.WTI crude oil for July delivery closed down 2.3% to settle at US$74.82 per barrel, the lowest since March 4, while August Brent oil was last seen down 3.6% to US$77.70.US Vice President JD Vance said technical talks aimed at formalizing last week's memorandum of understanding between the United States and Iran are progressing well, despite threats directed at Iran that President Donald Trump posted on social media over the weekend.A deal between the two countries could fully reopen the Strait of Hormuz, the chokepoint for exports from the Persian Gulf nations that supplied a fifth of daily oil demand prior to the Feb. 28 start to the war. Tankers have started moving through the waterway and Iran has resumed exports. The United Arab Emirates, Kuwait and Iraq reportedly promised to deliver more oil to customers.The US Treasury Department on Monday granted Iran a 60-day waiver to freely export oil and petrochemicals, and to collect payments in US dollars.

$CLN6$LCOQ6$USO

Cleveland-Cliffs Shares Fall After Morgan Stanley Downgrade

Cleveland-Cliffs (CLF) shares fell 3.7% on Monday after Morgan Stanley downgraded the stock to equalweight from overweight and adjusted its price target to $12.50 per share from $12.Trading volume stood at nearly 9.3 million shares compared with a daily average of over 17.8 million.Price: $11.83, Change: $-0.46, Percent Change: -3.71%

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Sector Update: Tech

Tech stocks were higher late Monday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 0.1% and the State Street SPDR S&P Semiconductor ETF (XSD) adding 1.4%.The Philadelphia Semiconductor index rose 1.1%.In corporate news, Dell (DELL) shares climbed 1.9% after it introduced the PowerEdge XE8812, a new server designed to handle large AI-computing workloads and built with Nvidia's (NVDA) Vera Rubin platform.

$DELL$NVDA

ConocoPhillips Shares Higher After Roth Capital Upgrade

ConocoPhillips (COP) shares were up about 1.5% in Monday trading after Roth Capital Partners upgraded the stock to buy from neutral and raised its price target to $130 from $124.Trading volume stood at more than 3.8 million shares, against a daily average of roughly 8.3 million.Price: $109.36, Change: $+1.62, Percent Change: +1.50%

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Sector Update: Healthcare

Healthcare stocks were higher late Monday afternoon, with the NYSE Healthcare Index rising 1.2% and the State Street Health Care Select Sector SPDR ETF (XLV) adding 0.8%.The iShares Biotechnology ETF (IBB) climbed 1.7%.In corporate news, Regenxbio (RGNX) shares jumped 19% after it said the US Food and Drug Administration has agreed on the next steps for a potential accelerated approval of Navsunli, its experimental gene therapy for Mucopolysaccharidosis II, following discussions related to its appeal of a complete response letter issued in February.

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Treasury38d ago

US Treasury Closing Levels

3:00 Monday vs 3:00 Thursday2yr 99-18 vs 99-23; 4.234% vs 4.166%5yr 99-08 vs 99-18+; 4.288% vs 4.218%10yr 98-29+ vs 99-13+; 4.509% vs 4.445%30yr 100-25+ vs 101-18+; 4.946% vs 4.898%2/10 27.241 bps vs 27.719 bps5/30 65.701 bps vs 67.761 bps

Teradyne Robotics, Vention Report Collaboration

Teradyne's (TER) Teradyne Robotics and Vention said Monday they are collaborating to speed up the design and deployment of robot cells by leveraging Vention's digital twin technology optimized for the Universal Robots platform.The collaboration will help Teradyne Robotics' customers with solution design and demonstrations, the companies said.Price: $448.85, Change: $+10.93, Percent Change: +2.49%

$TER

Sector Update: Consumer

Consumer stocks were lower late Monday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) decreasing 0.4% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) falling 1.5%.In corporate news, Uber (UBER) was sued Monday by shareholders who accused the ride-sharing company's board of ignoring warnings about compliance failures that allegedly contributed to thousands of sexual assault and harassment lawsuits, Reuters reported. Separately, Uber is expected to invest a "meaningful" amount and be named as an anchor investor for Lime's IPO, The Information reported. Uber shares were up 0.2%.

$UBER

APA Shares Rise After Upgrade From Roth Capital Partners

APA (APA) shares were up more than 3% in Monday trading after Roth Capital Partners upgraded the company's stock to buy from neutral and raised its price target to $38 from $37.Trading volume stood at about 4 million shares against a daily average of roughly 7.3 million.Price: $34.04, Change: $+1.01, Percent Change: +3.06%

$APA

Visteon Shares Rise After Barclays Upgrade

Visteon (VC) shares rose 5.8% in Monday trading after Barclays upgraded the stock to overweight from equalweight and raised its price target to $145 from $115.Intraday volume topped 678,500 shares, compared with the daily average of 545,335.Price: $120.40, Change: $+6.59, Percent Change: +5.79%

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US Biofuels Update: Crop Weather Pressures Soybean Futures, Soybean Oil Prices Rise

Biofuels feedstock futures closed mixed on Monday, as the soybean market dropped while the soybean oil prices recovered from a three-day skid.The Chicago Board of Trade July soybean futures contract closed 0.62 lower at $11.15 3/4 per bushel, while CBOT July soybean oil futures contract settled 2.09% higher at 71.15 cents per pound.The Nymex July ethanol futures contract settled 1.36% higher on Thursday at $1.86 per gallon.Rhett Montgomery, a DTN analyst, said favorable crop weather has its thumb on soybean prices."The soybean market was pressured by the same bearish weather aspects weighing on corn but also supported by a strong recovery session for soybean oil to begin the week," Montgomery said in a daily note.He added that after prices traded higher for three straight sessions on rumors, which were later confirmed, of Chinese purchases, "July soybean futures have again turned lower over the past two sessions."In the week ending June 18, a total of 8.9 million bushels of soybeans were inspected for export, well below the previous week's 19.6 mb and a marketing year low, the US Department of Agriculture data show.Inspections to date total 1.35 billion bushels and are down 19% from the same point a year ago, with USDA expecting a 20% year-over-year drop in soybean exports to 1.51 bb.