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Oil bounces to two-week high as Saudi says OPEC will do ‘whatever necessary.’ (00:29) PHINIA (PHIN) swings higher on first day of trading (01:19). Instagram (META) launches ‘Twitter killer’ Threads text app (01:37).
This is an abridged transcript of the podcast.
Saudi Arabia’s energy minister says OPEC and its allies will do “whatever necessary” to support the oil market, hinting at the potential for further production cuts.
Prince Abdulaziz bin Salman said new joint oil output cuts announced this week by Russia and Saudi Arabia have proven skeptics wrong.
Saudi Arabia said it would extend a July production cut of 1M bbl/day through August, while Russia said it would cut exports by 500K bbl/day.
But analysts at Morgan Stanley cut their oil price forecast, saying that while anticipating a decrease in inventories in 2023 they forecast a surplus in 2024’s H1, with non-OPEC supply growing faster than demand.
PHINIA Inc. (NYSE:PHIN) began trading on Wednesday on the New York Stock Exchange as an independent company after being spun off from BorgWarner (BWA) on July 3.
The new company’s brands include Delphi, Delco Remy, and Hartridge.
PHINIA (PHIN) ended the trading day up more than 22%.
Premarket PHIN is down 2%.
Now an update to our top story from Wednesday, Instagram has launched Threads, its short-posting text app.
After signaling a launch expected for today, with preorder links set up only for the iOS Threads app, Meta released its app Wednesday evening on Apple’s App Store as well as an Android app for Google Play.
Meta Platform’s CEO Mark Zuckerberg said more than 10M people have signed up to use Threads within hours of it launching.
Premarket META is up 1.5%.
Other headlines to look out for on Seeking Alpha:
BuzzFeed seeking $150M for Complex Networks – report
Vietnam in talks with Exxon on supply for planned LNG-fired power plants
Pinterest, Amazon partnership is live ‘earlier than expected’, says RBC
NY Fed’s John Williams says he 110% supports June’s hawkish pause
Google alleges India’s antitrust agency protecting Amazon in Android case – report
On our catalyst watch for the day, The highly-anticipated FDA action date on the full approval of Biogen’s (BIIB) Alzheimer’s disease drug Leqembi. An advisory panel of the FDA voted unanimously in June to recommend full approval of the drug.
And the European Commission’s Phase 1 review of Amazon’s (AMZN) purchase of iRobot (IRBT) will expire. Shares of iRobot trade about 25% below the $61 per share all-cash offer from Amazon.
Wall Street’s major averages on Wednesday ended marginally lower, as investors returned from the Independence Day holiday.
The Nasdaq (COMP.IND) lost ground by 0.18% the S&P 500 (SP500) retreated 0.20% while the Dow (DJI) slipped 0.37%.
Of the 11 S&P sectors, seven ended trading in the red, led by Materials and Industrials. Communication Services, Utilities, Real Estate and Consumer Discretionary were the three gainers.
Treasury yields were higher. The 10-year yield (US10Y) was up 9 basis points to 3.93% while the 2-year yield (US2Y) was up 3 basis points to 4.94%.
Meanwhile, the Fed minutes from the FOMC meeting in June showed that some officials favored raising the key policy rate by 25 basis points, citing a still-tight labor market, stronger-than-anticipated economic activity and persistent inflation.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are pointing lower. The Dow is down 0.4%, the S&P 500 is down 0.4% and the Nasdaq is down 0.3%. Crude oil is up 0.6% at more than $72 a barrel. Bitcoin is up 2.2% at more than 31,000.
In the world markets, the FTSE 100 is down 1.3% and the DAX is down 1.1%.
On today’s economic calendar, the OPEC meeting continues, at 830am Initial jobless claims will be released. Traders will be watching to see if last week’s decline to 239K was a one-off after three straight weeks of more than 260K new jobless claims being reported. And at 845 am the Fed’s Lorrie Logan will speak before the Central Bank Research Association on the topic, “Policy Changes for Central Banks.”
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