2025-01-02 23:35
Weekly jobless claims at 211,000, below estimates Tesla slides after deliveries data Crypto stocks rise along with Bitcoin Energy follows oil higher on China optimism Indexes down: Dow 0.36%, S&P 0.22%, Nasdaq 0.16% NEW YORK, Jan 2 (Reuters) - Wall Street see-sawed to a lower close on Thursday amid choppy trading, as investors embarked on the new year facing the cross-currents of solid labor market data, a rising dollar and tumbling Tesla shares. All three major U.S. stocks ended the session in negative territory, a reversal of an earlier rally but off session lows. "We had some macro news but somewhat mixed and you know we have a very strong dollar today," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "There are a few hurdles over the next couple of weeks and those are next Friday’s employment data and the beginning of fourth quarter earnings." "In the short term, we’re looking at choppiness and a struggle for direction until we get those hurdles out of the way," Cardillo added. Shares of Tesla (TSLA.O) , opens new tab sank 6.1% after reporting its first annual drop in deliveries, as incentives failed to stem a decline in demand for its aging line-up of electric vehicles. A report from the Labor Department showed initial and continuing claims for unemployment benefits both fell last week, supporting the narrative of a solid jobs market and adding weight to the possibility that the U.S. central bank could let its key interest rate stand at this month's policy meeting. Looking past uncertainties regarding the pace of interest rate cuts from the Federal Reserve, policies to be enacted by the incoming Donald Trump administration and various hot spots of geopolitical unrest, market participants chose to focus on the strength of the United States economy. Wall Street's main indexes notched double-digit gains in 2024, with the benchmark S&P 500 recording its best two-year run since 1997-1998. Those gains were driven by the U.S. Federal Reserve's first rate cuts in three-and-a-half years, the ongoing artificial intelligence boom and expectations of pro-business policies from the incoming Trump administration. The rally lost steam in the closing weeks of 2024, with the S&P 500 and the Dow marking declines for December, as markets priced in the likelihood of fewer rate cuts from the Fed this year. The S&P and the Nasdaq have now posted five consecutive sessions in the red, their longest losing streaks since mid-April. The Dow Jones Industrial Average (.DJI) , opens new tab fell 151.95 points, or 0.36%, to 42,392.27, the S&P 500 (.SPX) , opens new tab lost 13.08 points, or 0.22%, to 5,868.55 and the Nasdaq Composite (.IXIC) , opens new tab lost 30.00 points, or 0.16%, to 19,280.79. Among the 11 major sectors of the S&P 500, consumer discretionary stocks (.SPLRCD) , opens new tab were down the most, weighed by Tesla. Energy shares (.SPNY) , opens new tab, buoyed by rising crude prices enjoyed the largest percentage gains. Apple (AAPL.O) , opens new tab lost 2.6% as the gadgetmaker offered rare discounts in China in order to compete against domestic rivals. Crypto stocks such as Coinbase (COIN.O) , opens new tab, MicroStrategy (MSTR.O) , opens new tab and MARA Holdings (MARA.O) , opens new tab gained between 2.6% and 3.6%, tracking rising Bitcoin prices. Advancing issues outnumbered decliners by a 1.14-to-1 ratio on the NYSE. There were 77 new highs and 114 new lows on the NYSE. On the Nasdaq, 2,386 stocks rose and 1,988 fell as advancing issues outnumbered decliners by a 1.2-to-1 ratio. The S&P 500 posted one new 52-week high and 11 new lows while the Nasdaq Composite recorded 60 new highs and 34 new lows. Volume on U.S. exchanges was 15.01 billion shares, compared with the 14.92 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-rise-ahead-wall-sts-first-trading-session-2025-2025-01-02/
2025-01-02 21:33
LONDON, Jan 2 (Reuters) - Investment bank Morgan Stanley (MS.N) , opens new tab said on Thursday it had decided to leave the Net-Zero Banking Alliance, becoming the latest U.S. lender to quit the sector's top global climate coalition. While the bank gave no reason for its decision, top banks have been under pressure from some U.S. Republican politicians over their membership, with accusations that any move to limit finance to fossil fuel companies could breach antitrust rules. Despite leaving the NZBA, Morgan Stanley said in a statement that its commitment to helping the world transition to net-zero carbon emissions "remains unchanged." "We aim to contribute to real-economy decarbonization by providing our clients with the advice and capital required to transform business models and reduce carbon intensity," it said. The bank said it would also continue to report on its efforts toward previously set 2030 targets to reduce the emissions tied to its loan book. The decision by Morgan Stanley follows similar moves in recent weeks by Citigroup (C.N) , opens new tab, Bank of America (BAC.N) , opens new tab, Wells Fargo (WFC.N) , opens new tab and Goldman Sachs (GS.N) , opens new tab. A U.S.-based environmental advocacy group urged New York state on Thursday to regulate the financial sector and ensure its policies align with climate goals. "These exits reveal the inadequacy of voluntary commitments and underscore the urgent need for state-level leadership and regulation," Vanessa Fajans-Turner, executive director of Environmental Advocates NY, said in a statement. Sign up here. https://www.reuters.com/business/finance/morgan-stanley-leave-sector-climate-coalition-2025-01-02/
2025-01-02 21:07
COPENHAGEN, Jan 2 (Reuters) - Norway's Equinor (EQNR.OL) , opens new tab said on Thursday it had secured a financing package of more than $3 billion for its Empire Wind 1 offshore wind power project in the United States. The company expects the total capital investments, including fees for the use of the South Brooklyn Marine Terminal, to be around $5 billion, including the effect of future tax credits, it said in a statement. Equinor intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure, it added. Empire Wind 1 will power 500,000 New York homes and is expected to reach its commercial operation date in 2027, according to Equinor. Sign up here. https://www.reuters.com/markets/deals/equinor-secures-3-bln-financing-us-empire-wind-1-project-2025-01-02/
2025-01-02 21:07
MOSCOW, Jan 2 (Reuters) - Russian investigators have determined that an oil spill from two tankers in the Black Sea last month was smaller than initially thought, the Transport Ministry said on Thursday. The oil leaked from two ageing tankers that were hit by a storm on Dec. 15. One sank and the other ran aground. More than 10,000 people have been working to shovel up viscous, foul-smelling fuel oil from sandy beaches in and around Anapa, a popular summer resort. Environmental groups have reported deaths of dolphins, porpoises and sea birds. The ministry said experts had established that approximately 2,400 metric tons of oil products had spilled into the sea. "This is significantly less than the initial estimate, which was based on the account of one of the tanker captains," it said. When the disaster struck, state media reported that the stricken tankers, both more than 50 years old, were carrying some 9,200 metric tons (62,000 barrels) of oil products in total. The ministry said the spill involved heavy M100-grade fuel oil that solidifies at a temperature of 25 degrees Celsius and, unlike other oil products, does not float to the surface but sinks to the bottom or remains suspended in the water column. "There are no proven technologies in the world to remove it from the water column. Therefore, the main method is collection from the shoreline," the ministry said. Sign up here. https://www.reuters.com/world/europe/oil-spill-black-sea-smaller-than-first-thought-russia-says-2025-01-02/
2025-01-02 21:06
A third of surveyed see 'significantly' faster permit times Weak natural gas prices depress profits, hurt spending Wide gap between small and larger firms over emissions reduction HOUSTON, Jan 2 (Reuters) - U.S. energy executives expect faster permitting times for drilling on federal lands under President-elect Donald Trump, according to a Federal Reserve Bank of Dallas survey released on Thursday. The overall outlook brightened and activity levels increased while uncertainty declined in the final quarter of 2024, according to a December survey of 134 energy firms in Texas, Louisiana and New Mexico. Trump has vowed to lower gasoline prices and speed up permitting for energy projects under his "drill, baby drill" campaign mantra. A third of executives polled said they think the permitting process will become significantly faster over the next four years. "We are anticipating that regulatory compliance issues will decrease, primarily due to an incoming administration that is pro-business and pro-fossil-fuel production," said one exploration and production (E&P) firm executive who was not identified by the Dallas Fed. Trump's transition team is set to quickly roll out a wide-ranging energy package that includes the approval of export permits for new liquefied natural gas (LNG) projects and increased federal land and sea oil drilling. "The new administration will lift regulations, stop subsidizing green energy and seek LNG build-outs to place more demand on natural gas," another E&P executive told pollsters. The new administration could benefit hard-hit oilfield services firms, some executives said, citing a fresh bout of optimism for the first quarter of 2025. The survey showed a wide gap between large and small producers in plans to tackle greenhouse gas emissions. Nearly two-thirds of larger firms indicated plans to cut methane and 86% to reduce the burning of unwanted gas. In comparison, just 29% of smaller firms have plans to reduce methane and only 14% plant to reduce flaring, the report showed. POTENTIAL 2025 BOTTLENECKS Weak natural gas prices continued to pressure some exploration and production firms in the fourth quarter, executives said. Gas prices at the Waha Hub in West Texas fell into negative territory a record number of times in 2024. Negative gas prices force operators to pay for their gas to be taken away, reducing oil profit margins. "The low price for natural gas is crushing current cash flow. For smaller independents, cash flow is what feeds future investment," an executive reported. Mergers and acquisitions have hurt services firms, muting growth compared with the previous three years as producers consolidated and either held flat or reduce capital spending budgets, they said. Lower oil demand and efficiency gains in extraction technology have pressured services businesses, with greater efficiency boosting production but not activity levels. "It appears supply and demand are in close balance while production is sufficient for market needs," one executive said. On average, respondents expect a West Texas Intermediate (WTI) oil price of $71 per barrel by the end of 2025, with responses ranging from $53 to $100 per barrel. Meanwhile, survey participants anticipate a Henry Hub natural gas price of $3.19 per million British thermal units over the same period. Sign up here. https://www.reuters.com/business/energy/us-oil-executives-expect-faster-permitting-under-trump-says-dallas-fed-2025-01-02/
2025-01-02 21:04
US LNG exports approach monthly record in December US maintains spot as world's leading LNG exporter in 2025 Two new facilities to add to US output gains this year HOUSTON, Jan 2 (Reuters) - U.S. LNG exports reached near record levels in December, rising to 8.5 million metric tonnes (MT) as two new plants , opens new tab started, and driving up full-year shipments 4.5% over 2023, according preliminary data from financial firm LSEG. December's output was just short of the record monthly export of 8.6 MT recorded in December 2023 and was 9% higher than the 7.75 MT exported in November, according to LSEG data. For the year, LNG exports hit 88.3 MT, up from 84.5 MT in 2023, ensuring the U.S. maintained its crown as the world's largest LNG exporter , opens new tab, according to LSEG data. Cheniere Energy's (LNG.N) , opens new tab startup of its Stage 3 expansion at Corpus Christi, Texas, and Venture Global LNG's launch of its Plaquemines plant in Louisiana, are expected over time to add 30 MTPA to U.S. annual output. "Growth in U.S. exports from new capacity coming online particularly at Plaquemines given its large scale will be crucial to tempering some of the global LNG price volatility we expect in 2025," said Alex Munton director of global gas and LNG research at consulting firm Rapidan Energy Group. MARKET TO CHANGE IN 2025 Global LNG supply growth last year was minimal but the impact on prices was muted since last winter was mild in Europe, helping gas in storage stay high. Russian gas also continued to flow to Europe through Ukraine. Neither of those conditions are expected to continue this year, and supply-to-demand conditions will be significantly tighter, putting a spotlight on U.S. export growth, said Munton. Europe remained the preferred destination for U.S. LNG exports in December, with 5.84 MT or 69% of the superchilled gas sold to the continent, compared to 5.09 MT in November. U.S. exports to Europe saw a myriad of countries buying the superchilled gas as winter began to set in, with Turkey being one of the major European destinations for U.S. LNG in December, according to LSEG data. Total exports to Asia grew slightly in December to 2.01 MT, or 24%, up from 1.64 MT or 21% of total exports in November. Latin America took .58 MT, the same as November 2024, LSEG data showed. There was also one cargo for .07 MT sold to Jordan, according to LSEG data. In 2024 Europe accounted for 55% of total US LNG exports, 34% of total US exports went to Asia while the next 11% went mainly to Latin America with a few cargoes to the Middle East, mainly to Egypt and Jordan, LSEG data showed. Higher LNG production in late December has led to record feedgas demand and producers will have to play catch up this year, said Ira Joseph, an LNG market expert and senior researcher at Columbia University's Center on Global Energy Policy. “U.S. gas producers have long prepared for the ramp up in LNG feedgas demand, which is starting and picking up pace in 2025, but what is also true is that data center- and AI-related demand is coming at the same time," said Joseph. Sign up here. https://www.reuters.com/business/energy/us-lng-exports-soar-december-lifting-full-year-growth-by-45-2025-01-02/
