oil Archives - Page 4 of 6

March 17, 2022

Stock futures drift, oil rises as Wall Street digests Fed rate hike

U.S. stock futures stumbled in pre-market trading Thursday following a pivotal session on Wall Street marked by the Federal Reserve’s long-anticipated move to hike short-term interest rates for the first time in three years.

Contracts tied to the S&P 500, Dow and Nasdaq dipped ahead of the open after all three indexes closed higher Wednesday as investors digested the move. Futures tied to the S&P 500 were down 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} as of 7:00 a.m. ET to 4,344.50 , and the Dow shed about 90 points to 33,968.00. Nasdaq futures edged 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} lower to 13,899.00. Meanwhile, WTI Crude Oil futures gained 4.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to near $100 per barrel.

At the end of its two-day policy-setting meeting, the central bank revealed Wednesday that it will lift the benchmark Federal Funds Rate by 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, to a target range of 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 0.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The move was in line with what market participants had anticipated after Fed Chair Jerome Powell indicated in Congressional testimony earlier this month a 25 basis-point bump was distinctly possible.

“By raising interest rates, the Federal Reserve has begun the process of unwinding their pandemic-era stimulus measures in an effort to tame inflation,” Bankrate chief financial analyst Greg McBride said in a note. “This isn’t a one-and-done but the start of a series of rate hikes for the remainder of this year and well into next.”

The Fed also unveiled in its updated Summary of Economic Projections, or “dot plot,” which reflects the individual economic projections of policymakers on the Federal Open Market Committee, that the median member anticipates up to six more rate hikes in 2022, which would bring rates 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher at the end of this year. Before Wednesday’s decision, the benchmark interest rate was deliberately held near zero since mid-2020 as part of the Fed’s easy-money policies used to keep financial conditions running smoothly during the pandemic.

“The Fed didn’t rock the boat much,” LPL Financial chief market strategist Ryan Detrick said. “Yes, they lowered economic expectations in 2022 while also increasing inflation, but much of that was already priced into things. Overall, they still see strong growth, which helps support the recovery.”

The Marriner S. Eccles Federal Reserve Board building is seen in Washington, DC, March 16, 2022. - The Federal Reserve is expected to announce the first interest rate increase since the Covid-19 pandemic began at the conclusion of its policy setting meeting later today. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images) — The Marriner S. Eccles Federal Reserve Board building is seen in Washington, DC, March 16, 2022. – The Federal Reserve is expected to announce the first interest rate increase since the Covid-19 pandemic began at the conclusion of its policy setting meeting later today. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

Although the key decision provided some clarity to investors who for months have awaited for the central bank to take steps forward on tightening monetary conditions, the Fed’s path forward remains muddied by geopolitical turmoil in Eastern Europe. War in Ukraine and penalizing sanctions against Russia for its invasion of the country have raised uncertainty in recent weeks over the conflict’s toll on the global economic picture.

The Fed acknowledged in a statement that came out of its meeting that implications for the U.S. economy are “highly uncertain” but likely to worsen already decades-high inflationary pressures.

“Playing catch up is the theme that Fed officials signaled to markets today as the narrative has shifted from normalizing monetary policy to laying the groundwork for a more restrictive policy and moving beyond neutral,” Allianz Investment Management senior market strategist Charlie Ripley said in commentary.

Elsewhere in markets, shares of Warren Buffett’s Berkshire Hathaway closed at $500,000 for the first time on Wednesday. The price underscored Berkshire’s status as a defensive stock at a time markets have been roiled by economic and geopolitical uncertainty.

Berkshire’s Class A shares have advanced 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in 2022, even as the S&P 500 is down about 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-to-date. Prior to a relief rally on Wednesday, the benchmark index on Tuesday (the 50th trading day of the year) locked in its 6th worst start to a year ever, data from LPL financial reflected. The silver lining? The previous five worst starts were followed by notable gains, with an average gain for the rest of the year of 36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, with the exception of only 2001.

“Although we aren’t expecting 36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} gains the rest of this year, it does suggest that things might be quite bad now, but we’ve been here before and we’ve seen stocks come back way more than expected,” LPL’s Detrick said.

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9:03 a.m. ET: New U.S. home construction rebounds to strongest pace since 2006

U.S. housing starts in February rose to the strongest pace since 2006, pointing to better success by homebuilders navigating material and labor snafus during the month.

Residential starts jumped 6.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} last month to a 1.77 million annualized rate, according to data out of Washington out Thursday. Applications to build, a measure of future construction, abated to an annualized 1.86 million units but remained elevated overall.

Economists surveyed by Bloomberg estimated a pace of 1.7 million for housing starts in February.

MIAMI, FLORIDA - APRIL 16: Construction workers build a home on April 16, 2021 in Miami, Florida. The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced that housing starts surged 19.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in March to their highest level since 2006. (Photo by Joe Raedle/Getty Images) — MIAMI, FLORIDA – APRIL 16: Construction workers build a home on April 16, 2021 in Miami, Florida. The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced that housing starts surged 19.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in March to their highest level since 2006. (Photo by Joe Raedle/Getty Images)

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8:30 a.m. ET: Jobless claims fall to 214,000 in latest weekly data

Applications for unemployment insurance fell in the latest weekly data to extend a broader trend downward after surging COVID-19 infections earlier this winter briefly disrupted the labor market’s recovery to start the year.

The Labor Department latest weekly jobless claims report showed 214,000 claims were filed in the week ended March 12, coming in better than the 220,000 economists surveyed by Bloomberg had expected.

Jobless claims came in below 250,000 for a seventh consecutive week and hovered around pre-pandemic levels. Continuing claims, which track the total number of individuals claiming benefits across regular state programs, have held well below levels from even before the pandemic, coming in under 1.5 million for four straight weeks now compared to an average of around 1.7 million per week in 2019.

Although COVID’s impact on the labor market has appeared to ease, the economic toll the war in Eastern Europe may have remains unclear.

“Staggeringly high inflation is set to go higher in forthcoming reports because of impacts from Russia’s invasion of Ukraine and continuing supply chain disruptions including in China,” Mark Hamrick, senior economic analyst at Bankrate, wrote in an email. “These higher costs crimping household budgets risk dampening consumer discretionary purchases. It remains to be seen how much this could negatively affect the job market in the months to come.”

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7:03 a.m. ET: Futures slip, oil rises as investors continue to weigh rate hike

Here’s how markets fared ahead of the open Thursday

S&P 500 futures (ES=F): -9.00 points (-0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,349.00
Dow futures (YM=F): -67.00 points (-0.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,992.00
Nasdaq futures (NQ=F): -32.00 points (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,921.00
Crude (CL=F): +$4.20 (+4.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $99.24 a barrel
Gold (GC=F): +$35.20 (+1.84{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,944.40 per ounce
10-year Treasury (^TNX): +2.8 bps to yield 2.1880{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:02 p.m. ET Wednesday: Futures tick up after stocks close higher following Fed decision

Here’s where stock futures were ahead of the overnight session Wednesday:

S&P 500 futures (ES=F): +8.25 points (+0.19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,366.25
Dow futures (YM=F): +51.00 points (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,110.00
Nasdaq futures (NQ=F): +29.25 points (+0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,982.25
Crude (CL=F): +$0.30 (+0.32{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $95.34 a barrel
Gold (GC=F): +$17.00 (+0.89{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,926.20 per ounce
10-year Treasury (^TNX): +2.8 bps to yield 2.1880{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MARCH 16: Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2022 in New York City. The Dow started off the day in positive territory, extending yesterday's rally. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – MARCH 16: Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2022 in New York City. The Dow started off the day in positive territory, extending yesterday’s rally. (Photo by Spencer Platt/Getty Images)

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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March 16, 2022

Stocks, Oil and Businesses React to Ukraine-Russia War: Live Business News

Credit rating…Joe Raedle/Getty Images

In an abrupt move, Starbucks mentioned Wednesday that Kevin Johnson, its main executive due to the fact 2017, was retiring soon after 13 yrs with the business.

Howard Schultz, who joined Starbucks in the early 1980s and constructed it into a global large, will phase in as interim chief govt when Mr. Johnson, 61, leaves his career on April 4, the firm explained. Mr. Schultz, 68, experienced been chief executive for two former stints, most a short while ago from 2008 to 2017, when Mr. Johnson took above and Mr. Schultz became executive chairman. Starbucks stated it experienced employed a lookup organization and envisioned to decide on a new chief by slide. Mr. Schultz, who left the corporation in 2018, will also rejoin the company’s board of directors.

The announcement will come ahead of Starbucks’s yearly shareholder conference on Wednesday, all through which Mr. Johnson will converse. Mr. Johnson reported that he had first mentioned his designs with the company’s board of administrators previous yr.

“A calendar year ago, I signaled to the board that as the world pandemic neared an close, I would be contemplating retirement from Starbucks,” Mr. Johnson reported in a company assertion. Shares of Starbucks rose a lot more than 6 p.c on Wednesday.

Below Mr. Johnson, Starbucks was a single of the significant winners of the pandemic. As Covid-related restrictions closed places to eat to friends close to the country, Starbucks efficiently utilized — and grew — its drive-throughs, app and loyalty benefits software to swiftly supply lattes and treats to prospects. By spring 2021, Starbucks mentioned that income at its dining places experienced manufactured a “full recovery” from pandemic closures.

Final fiscal yr, which finished Oct. 3, 2021, Starbucks observed revenues jump much more than 23 percent, or $6 billion, to $29 billion from a year earlier when the pandemic shut down parts of the country for weeks. Working income additional than doubled to $4.8 billion.

But even though Starbucks’s financials have been strong, the company has struggled in modern months to regulate a wave of retail outlet unionizations. Ahead of past December, none of the company’s 9,000 shops had unionized. Given that staff at two Buffalo-space retailers voted to unionize in December, at the very least 6 areas have carried out so and personnel at additional than 100 outlets have filed for union elections.

Starbucks on Tuesday was strike with a complaint from the National Labor Relations Board, which accused the chain of illegally penalizing two Arizona staff involved in the union push at a Phoenix site, the hottest in the company’s labor disputes.

SBWorkersUnited, which has updating and rallying workforce on social media about the unionization thrust, on Wednesday morning tweeted for “Howard Schultz, who has been a leader of Starbucks’ anti-union campaign to put union-busting behind him and embrace Starbucks’ unionized future.” In November, just in advance of voting commenced on unionization at a few Starbucks areas in Buffalo, Mr. Schultz showed up to discuss with employees.

“We’re not a ideal corporation,” Mr. Schultz advised workforce at the assembly, according to a transcript provided by the company. “Mistakes are made. We learn from them, and we test and repair them.” He argued that the company’s record of accomplishing suitable by its personnel, together with offering wellbeing care benefits and fairness, showed that it had their pursuits in thoughts.

In the announcement Wednesday, Starbucks said that Mr. Johnson will proceed to serve on the board and as a guide through September. The enterprise, which claimed it has been engaged in succession arranging because last 12 months, said it anticipates to have a new chief executive by the slide.

This isn’t the first time Mr. Schultz, who joined a little Seattle coffee shop identified as Starbucks in 1982 ahead of later obtaining it, has returned to direct the organization.

Immediately after stepping down as chief executive in 2000 but remaining its chairman, Mr. Schultz returned in 2008, abruptly replacing Jim Donald, then the main government, when the organization was having difficulties with a downturn in the economic climate, an inflow of espresso competitors and missteps.

“When I returned, in January 2008, items were really even worse than I’d believed,” Mr. Schultz told Harvard Small business Critique in 2010.

In 2017, Mr. Johnson, then Starbucks’s president and a former senior government at Microsoft, became chief executive. A yr later, Mr. Schultz stepped down as executive chairman and board member.

Correction:

March 16, 2022

An earlier version of this posting misstated who will communicate at Starbucks’s once-a-year shareholder assembly on Wednesday. It is Mr. Johnson and Mellody Hobson, not Mr. Johnson and Mr. Schultz.

March 11, 2022

Stocks rise, recovering some losses as oil prices sink

Stocks rose Wednesday to recover some losses after a volatile start to the week, as concerns over the impact of the punitive measures countries and companies have taken against Russia weighed on U.S. equity markets.

The S&P 500 closed 2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher at 4,277.89 — posting its biggest gain since June 2020. The Dow gained 650 points, or 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, closing at 33,286.25. The Nasdaq jumped 3.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} closing at 13,255.55, logging its biggest advance since exactly a year ago on March 9, 2021. The CBOE Volatility Index, or VIX, dropped nearly 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} but still held above the 30 level. A day earlier, the S&P 500 dropped another 0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Tuesday to bring its year-to-date losses to 12.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Dow shed more than 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to sink further into a correction, while the Nasdaq Composite extended losses after sliding into a bear market earlier this week.

Crude oil prices pulled back from 14-year highs after Ukraine signaled it was aiming to pursue a diplomatic solution to Russia’s war. West Texas intermediate crude sank to just over $110 per barrel, while Brent crude traded just above $112 per barrel Wednesday afternoon. Gas prices at the pump, however, spiked to a fresh high across the U.S.

“You can’t have the rise at the fuel pumps not hit the economic pockets of everyday Americans, because it’s going to make everything go up in costs,” Victoria Greene, G-Squared Private Wealth founding partner, told Yahoo Finance Live. “Anything that rides on four wheels or six wheels, including all your shipping — it’s going to make all your costs rise. We’re already in an inflationary environment … it really is going to be something that we have to watch.”

“I don’t think that sanctions are going to go away,” she added. “The world is … angry at this situation. So let’s say miraculously we get a ceasefire tomorrow, I think the general shrinkage and the issues with supply chains are going to be a sticky situation for the rest of the year.”

And beyond the growing list of government-imposed sanctions against Russia, a myriad of major U.S. companies announced fresh plans to stop doing business in Russia for the foreseeable future. In the restaurants space, McDonald’s (MCD), Starbucks (SBUX), Coca-Cola (KO) and PepsiCo (PEP) said they would close some or all operations in Russia. Amazon Web Services said it would stop bringing on new sign-ups from Russia and Belarus, and Shopify announced it was suspending operations in the countries as well.

Given the ongoing geopolitical uncertainty and push to isolate Russia from the global economy, some strategists suggested investors should brace for more market volatility.

“I don’t think we’ve seen the bottom yet. And I’d like to be more optimistic, but the reason I say this is, when it comes to oil [and] other commodities, we’re still seeing shocks make their way through the system,” Ann Berry, Wheelhouse chief investment officer, told Yahoo Finance Live on Tuesday.

“We’re not done when it comes to oil and gas yet,” she added. “The U.K. and Europe have said that by the end of this year they’ll start weaning themselves from Russian exports – it’s not fast enough. And if the situation in Ukraine doesn’t get better, I do think there’s a scenario here where Europe will be pushed to take tougher actions faster, which is going to send oil prices only one way which is up from where it is right now.”

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4:00 p.m. ET: Nasdaq jumps 3.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in biggest advance in a year

Here were the main moves in markets as of 4:00 p.m. ET:

S&P 500 (^GSPC): +107.16 (+2.57{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,277.86
Dow (^DJI): +652.65 (+2.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,285.29
Nasdaq (^IXIC): +459.99 (+3.59{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,255.55
Crude (CL=F): -$14.10 (-11.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.60 a barrel
Gold (GC=F): -$49.40 (-2.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,993.90 per ounce
10-year Treasury (^TNX): +7.6 bps to yield 1.9480{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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1:11 p.m. ET: Crude oil prices sink, Brent drops more than 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after Ukraine official says country is ‘ready for a diplomatic solution’

Prices for West Texas intermediate and Brent crude oil prices sank Wednesday afternoon after a Ukrainian foreign policy aide to President Volodymyr Zelenskiy said the country was “ready for a diplomatic solution,” according to an interview with Bloomberg Television.

“Our first and foremost pre-condition for having such kind of negotiations is immediate cease-fire and withdrawal of Russian troops,” Ihor Zhovkva, deputy chief of staff to Zelenskiy, told Bloomberg. He added, however, that Ukraine would not trade “a single inch” of Ukrainian territory to Russia, and noted that Ukraine will continue to pursue NATO membership.

Zelenskiy also reiterated to German media outlet Bild TV Wednesday that he believed “only after the direct talks between the two presidents can we end this war,” referring to discussions with Russian President Vladimir Putin. For now, Zelenskiy has not had direct contact with Putin.

Brent crude oil prices dropped more than 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to trade just above $112 per barrel, while West Texas intermediate sank to hover just over $111 per barrel.

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10:47 a.m. ET: Bitcoin prices jump 9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, topping $42,000 after Biden announces crypto regulation executive order

The White House on Wednesday unveiled President Joe Biden’s executive order creating a framework for agencies to study and come up with a government-wide approach to regulating cryptocurrencies.

Bitcoin prices jumped nearly 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to top $42,000 following the announcement, which had been hinted at for weeks now. The executive order was originally set to be signed last month, though the timing was shifted due to the Russia-Ukraine crisis, Yahoo Finance’s Jennifer Schonberger reported.

One of the key tenets of the order calls for the government to explore a central bank digital currency (CBDC).

“The Order directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests,” according to the White House. “The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a U.S. CBDC, including development of a plan for broader U.S. Government action in support of their work.”

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10:14 a.m. ET: Job openings hold near record high in January: JOLTS

U.S. job openings held at a near-record level in January, with widespread labor shortages still weighing on the domestic economy while keeping leverage high for workers looking to switch jobs.

Vacancies totaled 11.263 million in the first month of 2022, the Labor Department said in its Job Openings and Labor Turnover Summary (JOLTS) on Wednesday. This compared to an upwardly revised 11.4 million openings in December, which marked a record in data going back to 2001. Consensus economists were looking for 10.950 million vacancies for January, according to Bloomberg consensus data.

The number of quits in January edged down just slightly, or by 151,000 compared to December, to reach 4.3 million. And the quits rate decreased to 2.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, which was still elevated but retreated from December’s record high of 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

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9:32 a.m. ET: Stocks open sharply higher, Nasdaq gains more than 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

The three major indexes posted a rebound Wednesday morning to pare some recent declines as investors eyed the fallout from Russia’s invasion of Ukraine and mounting global sanctions.

The S&P 500, Dow and Nasdaq moved sharply higher Wednesday morning. Technology stocks led the way higher, helping the Nasdaq jump more than 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Dow added more than 500 points, or 1.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. In the S&P 500, the consumer discretionary, information technology and financial sectors led the way higher.

Treasury yields rose across the curve as peak concerns over U.S. and global economic growth came down, and investors rotated back toward risk assets. The benchmark 10-year yield rose by nearly 4 basis points to break above 1.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

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7:22 a.m. ET: Stocks point to a higher open, Dow futures gain 450+ point

Here’s where markets were trading Wednesday morning:

S&P 500 (^GSPC): +64.75 points (+1.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,233.50
Dow (^DJI): +459.00 (+1.41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,061.00
Nasdaq (^IXIC): +257.50 (+1.94{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,524.50
Crude (CL=F): -$2.81 (-2.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $120.89 a barrel
Gold (GC=F): -$21.60 (-1.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $2,021.70 per ounce
10-year Treasury (^TNX): +3.9 bps to yield 1.91{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:10 p.m. ET Tuesday: Stock futures open lower

Here’s where stocks were trading Tuesday evening:

S&P 500 futures (ES=F): -11.50 points (-0.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,157.25
Dow futures (YM=F): -44 points (-0.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,558.00
Nasdaq futures (NQ=F): -53.25 points (-0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,213.75

NEW YORK, NEW YORK - MARCH 08: Traders work on the floor of the New York Stock Exchange (NYSE) on March 08, 2022 in New York City. The Dow was up slightly in morning trading as the Russian invasion of Ukraine continues to unsettle global markets. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – MARCH 08: Traders work on the floor of the New York Stock Exchange (NYSE) on March 08, 2022 in New York City. The Dow was up slightly in morning trading as the Russian invasion of Ukraine continues to unsettle global markets. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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March 5, 2022

Elon Musk calls for increase in US oil, gas production to combat Russia despite negative effect on Tesla

University of Louisville economics professor Alexei Izyumov predicts the oil current market will carry inflation and desire charges even higher.

Tesla co-founder and CEO Elon Musk referred to as on the United States to increase its domestic oil output in reaction to Russia’s invasion of Ukraine, while also acknowledging that his electrical car company would be negatively impacted by that go.

“Dislike to say it, but we want to boost oil & gas output instantly,” Musk tweeted Friday. “Incredible situations desire remarkable actions.”

(Photo by Patrick Pleul - Pool/Getty Images)

GRUENHEIDE, GERMANY – AUGUST 13: Tesla CEO Elon Musk ((Photo by Patrick Pleul – Pool/Getty Visuals) / Getty Photos)

REPUBLICANS, Electricity Authorities SAY KEYSTONE XL CANCELLED BY BIDEN WOULD HAVE Helped Lessen Require FOR RUSSIAN OIL

Musk extra, “Clearly, this would negatively impact Tesla, but sustainable power methods just are unable to respond instantaneously to make up for Russian oil & fuel exports.”

The Biden administration has faced elevated criticism from each sides of the aisle in the latest days for not accomplishing much more to concentrate on American power creation in response to Russia’s invasion of Ukraine, which has disrupted power marketplaces globally.

BLINKEN States ‘NO STRATEGIC INTEREST’ IN RUSSIA Electricity SANCTIONS, RESISTS Phone calls FOR OIL IMPORT BAN

Additionally, reviews have revealed that the U.S. is getting 650,000 barrels a day from Russia, which some have argued is basically funding Russian President Vladimir Putin’s war equipment.

Russian President Vladimir Putin (Yuri Kochetkov/Pool Picture by using AP / AP Newsroom)

Russia is the producer of one particular out of every 10 barrels of oil eaten by the globe, in accordance to the New York Situations, generating it the third-premier oil producer in the planet.

On Friday, Secretary of Condition Antony Blinken downplayed the idea of sanctioning Russia’s strength sector arguing that the United States has “no strategic interest” in performing so.

Musk’s initial Twitter article was retweeted nearly 20,000 occasions in 30 minutes of staying posted.

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“Founder of electric powered automobile enterprise suggests drill toddler drill!” AEI Senior Fellow Marc Thiessen responded.

“Knowledge from gentleman whose organization would not be helped by what he is recommending,” Fox News Senior Political Analyst Brit Hume tweeted.

A woman cries outside houses damaged by a Russian airstrike

A lady cries outside the house properties ruined by a Russian airstrike (AP Photo/Vadim Ghirda / AP Newsroom)

“America is funding Russia’s war by getting Russian oil and gasoline somewhat than making our own,” Republican Congresswoman Lauren Boebert responded.

Minutes soon after the simply call to maximize oil manufacturing, Musk tweeted yet again displaying solidarity with the people of Ukraine.

“Keep robust Ukraine,” Musk tweeted. “And also my sympathies to the good men and women of Russia, who do not want this.”

March 5, 2022

U.S. finance firms urged to sever ties with Russian oil

BP, for instance, announced Sunday it would exit its virtually 20 percent stake in Rosneft, a state-controlled oil enterprise (Energywire, March 1).

Now, environmentalists want Western finance firms to do the exact same. They say major financial commitment banking companies with stakes in Russia and its largest emitters should abide by fit to even further squeeze Russian President Vladimir Putin and his nation’s financial system. Executing so, they incorporate, also can enable the corporations mitigate economic chance.

Choose JPMorgan Chase & Co.

In accordance to information from Rainforest Action Network, the Wall Street huge is the biggest global banker of Gazprom, a further condition-owned electrical power firm. Concerning 2016 and 2020, the group states, the agency supplied the firm with about $3.5 billion in financing.

UniCredit SpA, a European commercial lender and Gazprom’s up coming greatest banker, arrived next at more than $2.3 billion, and was followed by Sberbank, Deutsche Lender AG and Crédit Agricole, which are based mostly in Russia, Germany and France, respectively. Aside from JPMorgan, no other major U.S. banking institutions have been in the top 10.

“There are so several corporate connections to Russia. But this just feels like a truly significant a single that hasn’t gotten much, if any, notice. Gazprom is the biggest Russian oil and gas firm, and their No. banker is JPMorgan Chase,” mentioned Jason Disterhoft, who prospects Rainforest Action Network’s fossil gasoline funding marketing campaign.

“It feels like a thing really worth contacting out,” Disterhoft included, in particular supplied governments’ and other companies’ mounting initiatives to exit the place. “In the context of everything heading on, they ought to be accountable.”

Citigroup Inc. also is beneath fire for its typical investments in Russia and its role as a so-known as depositary bank for Lukoil, one more Russian oil and gasoline huge.

In accordance to Citi, the work involves offering a “corporate governance seal of approval” to assist corporations access international money and reassure buyers that all those companies are harmless investments.

The bank’s once-a-year investor working day was held Wednesday. In response, advocacy groups together with Extinction Rebel NYC, New York Communities for Modify, Financial institution On Our Foreseeable future and Amazon Check out held a demonstration at Citi’s New York Metropolis headquarters to spotlight that connection and to simply call on the agency to close it for ethical-, local weather- and risk-related factors.

“Frankly, every greenback invested in Russian oil and gas supports Putin’s war of aggression, and his capability to wage long term wars of aggression. So which is the ethical implication,” Grace Regullano, a coordinator at Lender On Our Foreseeable future, claimed in an job interview.

“On the trader side,” Regullano additional, “continued financial investment in Russian oil and gas signifies sizeable hazard for Citigroup investors.”

A spokesperson for JPMorgan declined to respond to advocates’ concerns. A Citi spokesperson also declined to comment on advocates’ problems, but did reference a recent community disclosure that reported the firm’s publicity to Russia makes up just .3 p.c of its overall property.

Clark Williams-Derry, an analyst with the Institute for Electrical power Economics and Monetary Evaluation, agreed in theory that JPMorgan and other economic establishments have just about every reason to consider a hard glance at their Russian investments and relationships — including in the electricity sector.

But he did increase a noteworthy caveat when it comes to JPMorgan particularly: “The money has by now gone to Gazprom, so by canceling those people loans basically it is like saying, hey, you never have to repay individuals loans,” Williams-Derry claimed.

For that cause, he thinks the very best course of motion would be for JPMorgan to establish a “giant monetary no-fly zone” about Russia moving ahead.

“Even if you are disregarding weather fears, the possibility profile for Russia is so higher … that a bank like JPMorgan should really be cautiously reassessing just about every one buying and selling and banking relationship with just about every one Russian business, starting up with the fossil fuel firms,” he claimed.

Notably, MSCI ESG Exploration LLC downgraded Russia’s ecosystem, social and governance rating to the second-cheapest amount this week. Those rankings are meant to replicate how governments’ skill to control their organic methods, workforce, money devices and more might affect the “long-term sustainability and competitiveness of its economic system.”

Apart from downgrading Russia’s ranking, MSCI also claimed it is monitoring the expense outlook of Russian equities given mounting financial sanctions in opposition to the place.

JPMorgan, meanwhile, introduced that new personal debt issued by sanctioned Russian entities will not be suitable for the firm’s investment indices, and that it is mulling the possibility of eradicating Russia from its ESG fund suite.

Matthew Moscardi, a former executive director at MSCI, chalked the moves up to the firms responding to economic sanctions and logistical difficulties introduced on by key exchanges about the world halting the trading of Russian stocks.

‘Private sector equal of sanctions’

Advocates are not just targeting JPMorgan and Citi.

Environmentalists at Stand.earth revealed research this week that highlighted some of the world’s greatest cash managers’ investments in Russian oil and fuel. The group explained 7 corporations like JPMorgan, BlackRock Inc., the Vanguard Team Inc. and Condition Avenue Corp. have investments worth $5.8 billion in Russian oil and gas — and referred to as on them to exit people investments.

“Oil and gas exports from Rosneft, Gazprom, and Lukoil are essential to Russia’s ability to fund its armed forces, and its ability to retain leverage in world-wide politics,” the team argued.

In turn, they claimed the mammoth prosperity managers, which count on passive investment decision indexes that include firms in each individual sector across the economy, “can make a actual change by divesting from Rosneft, Lukoil, Gazprom, and the other Russian carbon majors that make up Putin’s war chest.”

Pavel Molchanov, an electrical power analyst with Raymond James & Associates Inc., stated that course of motion would mainly be symbolic since shifting shares from one particular owner to one more commonly does not have economic repercussions for the underlying firm.

But if corporations such as JPMorgan were to deny Russian corporations banking or insurance coverage services, he wrote in an electronic mail, that would be a “much extra direct means of action.”

“In essence, this is the personal-sector equivalent of sanctions,” Molchanov said. “Just as foreign central banks will no longer cooperate with Russia’s central lender in reaction to Russia’s invasion of Ukraine, it would be a huge deal for significant worldwide industrial financial institutions to prevent operating with Gazprom, Rosneft or Lukoil.”

Spokespeople for BlackRock and State Street did not respond to a ask for for remark.

Vanguard spokesperson Michael Nolan wrote in an email that the company is “reviewing the several international sanctions and analyzing the impacts to our funds, and will comply with applicable sanctions and federal government orders.”

Correction: A past edition of this post misstated the affiliation of Grace Regullano and the companies guiding the demonstration at Citi. Even though Regullano operates for the Sunrise Task, Sunrise spokesperson Jason Schwartz said in this instance she was talking in her capability with Bank On Our Long run. Schwartz also clarified that the Sunrise Undertaking was not associated in organizing the Citi protest.

A variation of this report initial ran in E&E News’ Climatewire. Get entry to more thorough and in-depth reporting on the energy changeover, purely natural assets, climate adjust and a lot more in E&E Information.

March 3, 2022

Stock futures dip amid Russia-Ukraine, rising oil prices

Stock futures pointed to a slightly lower open Thursday morning after rallying a day earlier, as concerns over rising energy prices and Russia’s ongoing war in Ukraine weighing on risk assets.

Contracts on the S&P 500 edged lower. The index ended higher by 1.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Wednesday afternoon as each of the Dow and Nasdaq also rallied. The move higher came following affirmation from Federal Reserve Chair Jerome Powell that the central bank will take a measured approach to raising interest rates amid geopolitical uncertainty helped to momentarily appease volatile markets.

Namely, investor focus turned to Powell’s testimony before the House Financial Services Committee on Wednesday, during which the Fed chief said explicitly that he would back a quarter-point interest rate hike following the Fed’s March meeting later this month. Powell left open the possibility that the Fed would raise interest rates and tighten more aggressively later this year, however, given the current, persistent inflationary pressures rippling across an otherwise solid U.S. economy.

“By expressing that 25 basis points is the likely path of the Fed, that takes away some of the uncertainty. And there was a big debate in the markets about whether it would be 25 basis points or 50 basis points out of the gate,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, told Yahoo Finance Live on Wednesday.

“Clearly, [with] the conflict in Ukraine and the sanctions potentially dampening global economic growth, that makes it more likely that the Fed would want to go a little more slowly,” Zaccarelli added. “But on the other hand, inflation is rising … It’s our concern that they will have to go for longer and higher than people are currently expecting.”

Powell is set to deliver the second day of his semi-annual address before the Senate Banking Committee on Wednesday.

And a continued melt higher in energy prices has further stoked inflation concerns. U.S. crude oil prices jumped above $116 per barrel on Wednesday to reach a more than decade high, as investors monitored the potential energy-market fallout from Russia’s invasion of Ukraine. And meanwhile Brent crude — the international standard — rocketed further to near $120 per barrel.

And other data on the U.S. economy have pointed to a tight labor market, suggesting rising wages will also remain an ongoing contributor to inflation. ADP said Wednesday that U.S. private-sector payrolls grew by 475,000 in February, or well above the 375,000 jobs expected, following a jump of more than half a million jobs in January. The Labor Department’s official February jobs is due for release Friday morning, and is expected to show a 5.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annual increase in average hourly earnings.

“Wage growth right now is too high for comfort, no matter how optimistic you might be about the outlook for productivity growth, and the Fed has to signal to the private sector that it is serious about preventing a wage/price spiral,” Ian Shepherdson, chief economist for Pantheon Macroeconomics, said in a note Wednesday. “QT [Quantitative tightening] remains under discussion, with no announcement imminent, but we think that every voting FOMC member right now expects to vote for a hike this month.”

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7:29 a.m. ET Thursday: Stock futures hold overnight losses

Here’s where markets were trading Thursday morning:

S&P 500 futures (ES=F): -2.5 points (-0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,379.25
Dow futures (YM=F): -7 points (-0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 33,842.00
Nasdaq futures (NQ=F): -26 points (-0.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,213.25
Crude (CL=F): +$1.72 (+1.56{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $112.32 a barrel
Gold (GC=F): +$15.70 (+0.82{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,938.00 per ounce
10-year Treasury (^TNX): -0.7 bps to yield 1.858{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:13 p.m. ET Wednesday: Stock futures dip

Here were the main moves in markets Wednesday evening:

S&P 500 futures (ES=F): -6.25 points (-0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,375.50
Dow futures (YM=F): -39 points (-0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 33,810.00
Nasdaq futures (NQ=F): -34.75 points (-0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,204.50

NEW YORK, NEW YORK - FEBRUARY 28: Traders work on the floor of the New York Stock Exchange (NYSE) after New York City Mayor Eric Adams rang the Opening Bell at the New York Stock Exchange (NYSE) on February 28, 2022 in New York, New York. Stocks plunged over 400 points as investors continue to weigh the situation in Ukraine as Russia continues its invasion of the nation. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – FEBRUARY 28: Traders work on the floor of the New York Stock Exchange (NYSE) after New York City Mayor Eric Adams rang the Opening Bell at the New York Stock Exchange (NYSE) on February 28, 2022 in New York, New York. Stocks plunged over 400 points as investors continue to weigh the situation in Ukraine as Russia continues its invasion of the nation. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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