US oil falls below $90
West Texas Intermediate crude futures, the US oil benchmark, fell below $90 a barrel on Thursday, sinking to their lowest level since February. Thursday’s decline builds on recent weakness in oil as recession fears weigh.
WTI last traded at $89.68 a barrel, down 1%. International benchmark Brent crude fell 1.3% to $95.53 a barrel.
“A disappointing summer driving season in the US, as well as in China, amid growth concerns has taken hold in the oil market,” said Bart Melek, head of commodities strategy at TD Securities. in a note on Thursday.
“[T]The oil market should still find solid support as extremely high supply risk premiums remain in the market and the world consumes what little is left of its excess capacity,” he added.
Coinbase steps up with BlackRock partnership
People watch as the logo of Coinbase Global Inc, the largest cryptocurrency exchange in the United States, is displayed on the Nasdaq MarketSite jumbotron in Times Square in New York, US, on April 14, 2021.
Shannon Stapleton | Reuters
Shares of Coinbase jumped more than 10% in premarket trading Thursday after BlackRock announced it would partner with the cryptocurrency exchange to offer cryptocurrency trading to major clients.
The partnership will initially focus on bitcoin, BlackRock said. BlackRock is the world’s largest asset manager.
Weekly jobless claims rise slightly to 260,000
Weekly jobless claims rose by 6,000 to 260,000 in the week ended July 30, according to a Labor Department report.
Stock futures were largely flat after the report. Investors will now be awaiting the June non-farm payrolls report due on Friday.
Tesla rises ahead of potential stock split approval
Tesla cars line up to wait for an open cargo bay on July 17, 2022 in Nephi, Utah. With more electric cars on the road, the lack of charging infrastructure is becoming a bigger problem for EV owners.
George Frey | Getty Images
Tesla shares rose more than 1% in premarket trading Thursday ahead of possible approval of a 3-for-1 stock split. The company officially proposed the stock split in a statement power of attorney presented in June. There will be a vote on the split at Tesla’s annual shareholder meeting today.
Sunrun appears after earnings
Shares of Sunrun rose more than 5% in premarket trading Thursday following the company’s second-quarter results.
The residential solar installer reported revenue of $584.6 million during the three-month period. Analysts polled by StreetAccount had expected revenue of $501.5 million.
Sunrun said its total number of customers rose 21% year over year to 724,177.
Eli Lilly, Paramount and Restaurant Brands advance in earnings announcements
Several companies reported quarterly earnings Thursday before the bell, sending stocks surging ahead of the market open.
Eli Lilly missed estimates and lost nearly 4%. Paramount Global also fell about 4% despite reporting better-than-expected results. Restaurant Brands reported a rise in earnings, rising about 1%.
Here are the moves other stocks made in pre-market trading.
Alibaba Jumps After Beating Earnings
The signaling of Alibaba Group Holding Ltd. covers the front facade of the New York Stock Exchange on November 11, 2015.
Brendan McDermid | Reuters
Alibaba shares rose as much as 7% in premarket trading after the company reported earnings that beat Wall Street expectations.
While the report beat estimates, it marked the first quarterly release where Alibaba showed flat growth. The company faced a number of headwinds during the quarter due to Covid and the global economy.
The Bank of England announces the biggest increase in interest rates in 27 years
The Bank of England raised interest rates by half a percentage point on Thursday, the sixth increase in a row and the first hike of this size since 1997, in an effort to cool inflation.
Inflation in the UK is also at a 40-year high and is set to rise further. The bank now expects headline inflation to peak at around 13% in October, meaning rate hikes are likely to continue.
Another bearish stage for stocks is coming, says Bernstein
Bernstein strategists led by Sarah McCarthy said they expect the market to drop another notch in the near term.
“While the longer-term sentiment indicators are bearish enough to have a positive view on stocks over a 12-month horizon, in the short-term we believe the market is likely to see another downside as we are just at the start of the earnings cut cycle. , and we have yet to see significant outflows from equity funds,” they said in a note to clients on Thursday.
These comments come as the market is enjoying a strong rally from mid-June lows. Since then, the S&P 500 is up 14.25%.
Stock futures are little changed after Wednesday’s monster rally
Traders work on the floor at the New York Stock Exchange (NYSE), New York, August 3, 2022.
Andrew Kelly | Reuters
US stock futures pointed to a muted open on Thursday as the market took a breather after a rally in the previous session. Futures tied to the Dow Jones Industrial Average rose less than 0.1 percent, along with S&P 500 and Nasdaq 100 futures.
muted European markets; a big hike from the Bank of England is expected
European shares were muted on Thursday as uncertainty returned after the previous session’s gains.
The pan-European Stoxx 600 was up 0.2% by mid-morning. Retail stocks were the top performers, rising 2.2%, while telecoms fell 0.5%.
The UK’s FTSE retreated ahead of the Bank of England’s monetary policy decision later Thursday. The central bank is widely expected to raise interest rates by 50 basis points, its biggest single increase since 1995.
Alibaba shares in Hong Kong gained 4% ahead of earnings
Alibaba will report fiscal first-quarter earnings before the market opens, and analysts expect the Chinese e-commerce giant to post its first-ever revenue decline.
Alibaba is expected to have revenue of 203.19 billion yuan ($30 billion) for the June quarter, down 1.2 percent from a year ago, according to Refinitiv consensus forecasts.
Alibaba has faced a series of headwinds, from a tighter regulatory environment in China to a resurgence of Covid in the world’s second-largest economy that led to lockdowns in major cities. These factors have weighed on the Chinese economy, dampening advertising budgets and consumer spending, which will likely weigh on Alibaba’s June quarter results.
Still, analysts expect the company to return to growth in the coming quarters. Hong Kong-listed Alibaba shares were more than 4% ahead of earnings.
– Arjun Kharpal
Jim Cramer says the charts point to a rally in gold
One-kilo gold bars are shown at the plant of gold and silver refiner and bullion maker Argor-Heraeus in Mendrisio, Switzerland, on July 13, 2022.
Denis Balibouse | Reuters
CNBC’s Jim Cramer said now is a good time to buy gold as signs point to a rally, according to analysis by commodities trader Larry Williams.
The “Mad Money” host explained Williams’ analysis by looking at gold’s weekly action since 2014 and data on the positioning of small speculators on gold from the Commitments of Traders report from the Commodity Futures Trading Commission.
According to Williams, gold prices typically peak shortly after small speculators become too bullish on the precious metal and bottom out when small speculators are too bearish.
“The charts, interpreted by the legendary Larry Williams, suggest that the general public is giving up on gold in droves and believes that this makes it the perfect entry time to do some buying,” Cramer said.
– Abigail Ng, Krystal Hur
Here’s how to invest for returns to get you through a bad year for stocks and bonds, according to the pros
Stocks are volatile and bonds haven’t fared much better this year, with US investment-grade bonds falling in 2022.
But recently analysts have been bullish on income investing as yields start to rise again.
Here are some ways professionals suggest investors can position their portfolios for diversification and protection against market volatility, as well as seek higher returns as inflation continues to rise. Professional subscribers can read the story here.
– Weizhen Tan
Fortinet shares fall
Fortinet shares fell more than 9% in extended trading after the cybersecurity firm reported its quarterly results, which included free cash flow of $283.5 million, compared with estimates of FactSet of $337.2 million. Service revenue also missed estimates.
Other cybersecurity stocks also fell after hours. CrowdStrike fell 1% and Palo Alto Networks lost more than 1%.
– Tanaya Machel
Walmart begins layoffs, about a week after its earnings announcement
Walmart has begun laying off corporate employees about a week after the retail giant cut its profit outlook and warned of a pullback in consumer discretionary spending due to inflation. The company described the layoffs as a way to “better position the company for a strong future” in a statement to CNBC. Shares were down less than 1% after hours.
– Tanaya Machel
Lucid shares fall nearly 12%
Courtesy: Lucid Motors
Shares of luxury electric vehicle maker Lucid Group fell 11.7% in extended trading after the company cut its full-year production targets for the second time to 6,000. The original forecast was 20,000. The company also reported a quarterly loss of 33 cents per share.
– Tanaya Machel