2025-04-22 20:56
3M jumps after results Northrop Grumman, RTX tumble IMF cuts US growth forecast Indexes up: Dow 2.66%, S&P 500 2.51%, Nasdaq 2.71% Stocks surge in extended trade after Trump says no plan to fire Powell April 22 (Reuters) - U.S. stocks rebounded on Tuesday as a spate of quarterly earnings reports and hints at the de-escalation of U.S.-China trade tensions brought buyers in from the sidelines. U.S. stocks jumped further in extended trade after President Donald Trump said he has no plans to fire Federal Reserve Chair Jerome Powell, stepping back from his recent rhetoric against the central bank chief. Sign up here. Trump also told reporters he would be very nice in negotiations with China, and that tariffs on imports from the country would fall significantly following a deal, but not to zero. In a sign that traders expect Wall Street to rally on Wednesday, S&P 500 futures jumped almost 2% following Trump's comments, while Amazon.com (AMZN.O) , opens new tab and Nvidia (NVDA.O) , opens new tab were last up 3% each and Apple (AAPL.O) , opens new tab climbed 2% in after-hours trading. During Tuesday's session, a broad rally boosted all three major U.S. indexes by more than 2.5%, as investors looked past Trump's attacks against Powell, who is widely considered a stabilizing force for the markets. After being battered for weeks by the White House's erratic and multi-front tariff disputes, the S&P 500 at Tuesday's close was nearly 14% below its record closing high reached on February 19. Earlier on Tuesday Treasury Secretary Scott Bessent said that while trade negotiations with Beijing will likely be "a slog," he believes there will be a de-escalation of U.S.-China trade tensions. "The roller coaster continues," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "Some thawing of the aggression (between) U.S. and China, thanks to Bessent’s comments, helped push things higher." "Washington understands that the uncertainty around tariffs is hurting markets and maybe we can get some type of positive news going forward on the trade front," Detrick added. Those uncertainties helped prompt the International Monetary Fund to slash its forecasts for U.S. economic growth to 1.8% in 2025, citing the impact of U.S. tariffs, now at 100-year highs. Meanwhile, the first-quarter earnings season gathered steam. So far, 82 of the companies in the S&P 500 have reported. Of those, 73% have beaten expectations, according to LSEG. Analysts now see aggregate S&P 500 earnings growth at 8.1% for the January - March period, down from the 12.2% growth forecast at the beginning of the quarter, per LSEG. "Current earnings are showing a continuation of good fundamentals, which is not a surprise," said Bill Merz, head of Capital Market Research at U.S. Bank Wealth Management, Minneapolis, who added investors are parsing corporate guidance for "clarity on what companies are planning to do in response to tariff policy." Shares of industrial conglomerate 3M Co (MMM.N) , opens new tab jumped 8.1% after the company posted better-than-expected first-quarter profit expectations, though it flagged a likely hit to 2025 profit from tariffs. Northrop Grumman (NOC.N) , opens new tab slumped 12.7% after it reported a sharp drop in profit. Aerospace and defense company RTX (RTX.N) , opens new tab tumbled 9.8% after flagging a potential $850 million hit to its annual profit due to tariffs. The Dow Jones Industrial Average (.DJI) , opens new tab rose 1,016.57 points, or 2.66%, to 39,186.98, the S&P 500 (.SPX) , opens new tab gained 129.56 points, or 2.51%, to 5,287.76 and the Nasdaq Composite (.IXIC) , opens new tab gained 429.52 points, or 2.71%, to 16,300.42. All 11 major sectors in the S&P 500 advanced, with financials (.SPSY) , opens new tab and consumer discretionary (.SPLRCD) , opens new tab enjoying the largest percentage gains. Advancing issues outnumbered decliners by a 6.4-to-1 ratio on the NYSE. There were 50 new highs and 44 new lows on the NYSE. On the Nasdaq, 3,580 stocks rose and 796 fell as advancing issues outnumbered decliners by a 4.5-to-1 ratio. The S&P 500 posted 4 new 52-week highs and one new low while the Nasdaq Composite recorded 31 new highs and 76 new lows. Volume on U.S. exchanges was 15.21 billion shares, compared with the 18.94 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/us-stock-futures-rebound-after-selloff-corporate-earnings-focus-2025-04-22/
2025-04-22 20:55
WASHINGTON, April 22 (Reuters) - A Michigan nuclear reactor hoping to be the first in the United States to restart after permanent closure has received about 10% of $1.52 billion in U.S. financing approved during former President Joe Biden's term, the Energy Department said on Tuesday. The department's Loan Programs Office approved disbursement on Tuesday of nearly $47 million of the loan guarantee to the Palisades nuclear plant Holtec Inc hopes to reopen late this year, perhaps as early as October. Sign up here. It was the second disbursement by the administration of President Donald Trump to Palisades, after one last month, and the third after the conditional loan guarantee was finalized during the Biden administration. More than $151 million of the original loan guarantee has been disbursed. "With projects like the Palisades Nuclear Plant, the Energy Department is working to ensure America's nuclear renaissance is just around the corner," Energy Secretary Chris Wright said in a release. Many politicians from both major parties support nuclear power as electricity demand rises for the first time in two decades, boosted by artificial intelligence, crypto-currency and electric vehicles. Power company Entergy closed the 800-megawatt Palisades reactor in Michigan in 2022, after the plant generated electricity for more than 50 years. It shut two weeks ahead of schedule over a glitch with a control rod, despite a $6 billion federal program to save nuclear plants suffering from rising costs. Holtec still needs permits from the Nuclear Regulatory Commission to reopen Palisades. Holtec is repairing steam generators at the reactor as the standard procedure for maintaining the units was not followed when the plant went into shutdown. The LPO has hundreds of billions available in financing but the Trump administration is likely to use the financing more narrowly than the Biden administration and mainly approve loans for nuclear power, development of critical minerals, power transmission and geothermal power, a source said. The LPO has been hit hard by staffers taking buyouts offered by the Trump administration, with about 100 out of 220 workers leaving. https://www.reuters.com/business/energy/us-disburses-part-loan-michigan-nuclear-power-plant-restart-2025-04-22/
2025-04-22 20:52
NEW YORK, April 22 (Reuters) - Power grid use in the far northeast United States registered an all-time low over the weekend as mild weather and rooftop solar panels slashed demand on the regional electrical system, grid operator ISO New England said on Tuesday. WHY IT MATTERS The U.S. power grid is shifting as climate change, the rise of renewable electricity generation and the electrification of buildings and industries like transportation upend long-held supply and demand trends. Sign up here. On April 20, power demand on the New England power grid dropped to 5,318 megawatts after three consecutive years of registering record lows, ISO New England, the grid operator, said in a statement. This record was more than 1,200 megawatts, or about 20%, lower than last year's. After reaching a trough in the afternoon, power demand more than doubled on the grid throughout the day as the sun set, rooftop solar energy diminished, and homes and business drew more power from the grid. At its peak on the day, so-called behind-the-meter solar peaked at about 6,600 megawatts. KEY QUOTE "The trend toward more 'duck curve' days, when demand is lowest in the afternoon instead of overnight, illustrates the region’s changing resource mix, and the role different types of resources play over the course of a day," ISO New England said. New England is in the midst of a broader shift in consumption, with a longer-term move away from the traditional peaking demand in the summer towards winter peaks as more buildings incorporate electric heat pumps. https://www.reuters.com/business/energy/new-england-grid-demand-hits-record-low-rooftop-solar-kicks-2025-04-22/
2025-04-22 20:44
April 22 (Reuters) - EQT (EQT.N) , opens new tab said on Tuesday it plans to buy the upstream and midstream assets of oil-and-gas producer Olympus Energy for $1.8 billion to expand its presence in the natural gas-rich Marcellus region in the U.S. A wave of consolidation in the U.S. energy sector since 2023 started to show signs of fatigue towards the end of last year, but North America is expected to remain a leader in global M&A activity. Sign up here. EQT's cash-and-stock deal comes even as the natural gas producer attempts to reduce debt it had accumulated after the $14 billion purchase of pipeline operator Equitrans Midstream last year. It had net debt of $8.1 billion as of March 31 and expects to reach about $7 billion by the year-end. The deal with Olympus, expected to close early in the third quarter of 2025, consists of 26 million shares of EQT common stock worth $1.3 billion and $500 million in cash, which the company expects to fund with cash on hand and borrowings under its revolving credit facility. "Olympus Energy has over 10 years of high-quality Marcellus inventory at maintenance activity levels, with an additional 7 years of upside from the Utica," EQT said in a statement. Both Marcellus and Utica are large shale formations in the United States. The Marcellus formation accounts for about 21% of all U.S. gross natural gas production, according to the Energy Information Administration (EIA). FIRST-QUARTER RESULTS EQT also beat first-quarter profit estimates, benefiting from higher natural gas prices and sales volumes. Average natural gas prices have risen over the past few quarters, reaching a two-year high on March 10, supported by record flows to liquefied natural gas (LNG) export facilities and concerns over supply in the lead-up to the summer season. EQT's average realized price for natural gas during the quarter was up 17% year-over-year, at $3.77 per thousand cubic feet equivalent (Mcfe), while sales volume was up 6.9% to 570,751 million cubic feet equivalent (MMcfe). The company also raised its full-year production forecast by 25 billion cubic feet equivalent (Bcfe) to between 2,200 and 2,300 Bcfe. EQT reported an adjusted profit of $1.18 per share for the quarter ended March 31, above analysts' average estimate of $1.02 per share, according to data compiled by LSEG. https://www.reuters.com/business/energy/eqt-acquire-upstream-midstream-assets-olympus-energy-18-billion-2025-04-22/
2025-04-22 20:40
WASHINGTON, April 22 (Reuters) - U.S. President Donald Trump's administration would be willing to offer Argentina a credit line if an "external shock" jeopardized the country's economic turnaround, according to a transcript of comments by Treasury Secretary Scott Bessent seen by Reuters. The comments were made in a closed-door meeting in Washington and shared with Reuters by a person inside the room. Bloomberg first reported the news, citing sources. Sign up here. According to the comments by Bessent, who recently traveled to Buenos Aires, the U.S. government would be willing to use the Exchange Stabilization Fund , opens new tab to support Argentina if something happened through no fault of its own. Argentina, a major grains producer with large troves of shale and battery metal lithium, is battling to exit one of its worst economic crises, with tough austerity under libertarian President Javier Milei helping stabilize the economy. Milei is a close ideological ally of Trump and recently sealed a $20 billion loan deal from the International Monetary Fund. Milei has pushed a zero deficit agenda and focused on tamping down inflation. "I think if they continue with what they are doing, if they stay the course, even, I would be willing to use the exchange stabilization fund to smooth over their adjustment," Bessent said, according to the comments shared with Reuters. "If something happens for no fault to their own, then I think that we at Treasury would be willing to step in and help smooth things over." Milei has won plaudits from economists and investors for stabilizing Argentina's currency, reining in triple-digit inflation and navigating through a tough recession. The country, however, remains on fragile ground, with foreign currency reserves depleted - though boosted by the new IMF funds - and local industry in need of investment. Bessent, however, suggested Milei could avoid the traps previous governments have walked into, including conservative Mauricio Macri who pushed orthodox reforms and got a massive IMF bailout in 2018 that failed to avert economic crisis. "The Macri government had an incredible opportunity, and I was a big fan of Mauricio, but he blinked," Bessent said, according to the comments shared with Reuters. "And as soon as he blinked, the market came and got him. My sense is that Milei is not going to blink." https://www.reuters.com/world/americas/bessent-signals-us-willingness-offer-argentina-credit-line-bloomberg-reports-2025-04-22/
2025-04-22 20:38
WASHINGTON, April 22 (Reuters) - The Senate Commerce Committee said Tuesday it plans to hold a May 1 confirmation hearing for Paul Dabbar to serve as deputy U.S. commerce secretary. Dabbar is a former CEO of Bohr Quantum Technology, developing and deploying technologies for the emerging quantum internet and a director at Dominion Energy. Dabbar, a former nuclear submarine officer, served in the first Trump administration as a senior Energy Department official. Sign up here. https://www.reuters.com/world/us/us-senate-panel-hold-may-1-confirmation-hearing-deputy-commerce-secretary-2025-04-22/
