2025-11-05 21:51

Nov 5 (Reuters) - Devon Energy (DVN.N) , opens new tab surpassed Wall Street expectations for third-quarter profit on Wednesday, as the U.S. shale producer benefited from higher output. Shares of the company rose 1.8% after the bell. Sign up here. U.S. oil and gas production rose to record highs in August, data from the Energy Information Administration showed. U.S. crude oil output rose 86,000 barrels per day, while gross natural gas production from the lower 48 states rose to a record 122.8 billion cubic feet per day (bcfd). Devon also benefited from a 26% jump in U.S. natural gas prices during the July-September period from a year earlier, driven by soaring demand to power data centers as well as a rise in liquefied natural gas exports. The energy sector has been benefiting from a rise in demand for natural gas, supported by LNG exports and increasing power consumption due to hotter temperatures and data center operations. Devon's third-quarter production rose to 390,000 barrels of oil per day, from 335,000 boepd a year ago. Its average realized prices — or the price received for production — came in at $36.46 per boe during the reported period, compared with $40.71 per boe last year. The firm slightly lowered its 2025 capital expenditure budget to a range of $3.5 billion to $3.7 billion from a prior forecast of $3.6 billion to $3.8 billion. Top U.S. oil and gas producers have cut their capital expenditure forecasts for 2025 by about $2 billion amid lower oil prices and a wave of industry consolidation. Devon's total output rose 17% to 853,000 barrels of oil equivalent per day during the quarter, while natural gas output rose nearly 3% to 1.41 million cubic feet per day. The Oklahoma City-based company posted an adjusted profit of $1.04 per share for the three months ended September 30, compared with the analysts' average estimate of 93 cents apiece, according to data compiled by LSEG. https://www.reuters.com/business/energy/devon-energy-beats-third-quarter-profit-estimates-2025-11-05/

2025-11-05 21:35

Nov 5 (Reuters) - U.S. President Donald Trump nominated former congressman Stevan Pearce to serve as director of the Bureau of Land Management, the agency responsible for managing 245 million acres of public lands. Pearce, 78, is from New Mexico, the largest producer of oil and gas on federal lands. He has long supported expanding domestic oil production and nuclear power. Sign up here. As head of the BLM, Pearce will oversee federal leasing programs for oil and gas, mining, grazing and renewable energy development. Trump has looked to federal lands to carry out his "energy dominance" agenda to maximize domestic energy and minerals production and slash red tape. The BLM is a division of the Interior Department. A Republican, Pearce represented New Mexico in the House of Representatives from 2003 to 2009 and again from 2011 to 2019. He ran unsuccessfully for the Senate in 2008 and for governor in 2018. Prior to entering politics, Pearce owned an oilfield services company. He also served as a pilot in the U.S. Air Force during the Vietnam War. https://www.reuters.com/legal/government/trump-taps-former-new-mexico-lawmaker-run-public-lands-bureau-2025-11-05/

2025-11-05 21:27

Nov 5 (Reuters) - Albemarle (ALB.N) , opens new tab reported a smaller-than-expected loss for the third quarter on Wednesday, as the lithium producer's tight leash on costs and resilient sales volumes softened the squeeze from persistently low prices for the metal. Albemarle has sharpened its focus on efficiency and cash preservation as the industry grapples with the fallout of an oversupplied market. Sign up here. The company lowered its 2025 capital spending forecast to around $600 million, down 65% from $1.7 billion in 2024, and said it expects to generate positive free cash flow of $300 million to $400 million this year. Albemarle has been cutting capital spending and operating costs to manage the fall in prices lithium, a critical component used in batteries, amid the waning demand for electric vehicles. The company reported an adjusted loss of 19 cents per share for the quarter ended September 30, compared with analysts' average estimate for a loss of 78 cents per share, according to data compiled by LSEG. https://www.reuters.com/business/albemarle-posts-smaller-than-expected-loss-cost-cuts-take-hold-2025-11-05/

2025-11-05 21:20

Indexes up: Dow 0.48%, S&P 500 0.37%, Nasdaq 0.65% US economy adds more private jobs in October than expected Supreme Court questions legality of Trump tariffs McDonald's, Amgen, Match Group's shares rise after results NEW YORK, Nov 5 (Reuters) - U.S. stocks rebounded on Wednesday as jitters over inflated tech stock valuations abated and upbeat earnings and better-than-expected economic data fueled investors' risk appetite. A broad rally sent all three major U.S. equity indexes higher on the day, with a bounce-back in tech and tech-related momentum stocks leading the charge. Sign up here. But the rally lost some momentum after JPMorgan Chase CEO Jamie Dimon told Reuters that asset prices are quite high and there is always a risk of markets going down. Technology and artificial intelligence-related shares have muscled the stock market to record-breaking highs in recent months, leading to worries of inflated valuations and prompting Wall Street executives to issue pullback warnings. Those worries came to a head on Tuesday, when the S&P 500 and the Nasdaq posted their largest single-day percentage drops since October 10. Even so, investors viewed the selloff as healthy profit-taking. "Valuation concerns are very legitimate and a 10% to 15% short-term correction is something that should be anticipated at any time," said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. "There is a little bit of a mentality amongst investors that if there's a pullback, it'll be short-lived and things will bounce back, therefore buy the dip and don't worry." The U.S. Supreme Court raised doubts over the legality of U.S. President Trump's market-jarring tariffs in a case with global economic implications that tests the extent of his powers. Beijing said it would lift some retaliatory tariffs on U.S. imports, but maintained 10% levies imposed after what Trump called Liberation Day on April 2. Imports of U.S. soybeans, however, will still face a 13% tariff. ADP's National Employment Report showed private payrolls rebounded in October, increasing by 42,000. Still, the labor market is showing signs of weakness as some sectors continue to shed jobs. A separate report showed the U.S. services sector expanding, even as it loses jobs and contends with the highest input costs in nearly three years. A congressional impasse has resulted in what is now the longest-ever U.S. government shutdown, which has forced investors and the data-dependent Federal Reserve to rely on private sector indicators. Third-quarter earnings season remains in full force as it barrels toward the last stretch. So far, 379 of the companies in the S&P 500 have reported, 83% of which topped Wall Street expectations, according to LSEG data. Analysts now predict aggregated S&P 500 earnings growth of 16.2% year-on-year for the July-September period, more than double the 8.0% growth expectations at the beginning of the quarter according to LSEG. "Earnings, revenues, and guidance have been surprisingly positive throughout this earnings season," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "That's in the face of an economy that has seen weakening job numbers, as well as tariffs and their uncertain impact." "November and December tend to be good months for the market anyway," Tuz added. "And with these tailwinds, I don't see anything that's going to come along and turn things negative." The Dow Jones Industrial Average (.DJI) , opens new tab rose 225.76 points, or 0.48%, to 47,311.00, the S&P 500 (.SPX) , opens new tab gained 24.74 points, or 0.37%, at 6,796.29 and the Nasdaq Composite (.IXIC) , opens new tab climbed 151.16 points, or 0.65%, to 23,499.80. McDonald's (MCD.N) , opens new tab gained 2.2% after the fast-food chain beat same-store sales estimates as affordable meal offers boosted demand. Match Group's (MTCH.O) , opens new tab fourth-quarter revenue forecast landed shy of expectations. But shares of the Tinder parent's shares jumped 5.2%. Amgen (AMGN.O) , opens new tab gained 7.8% in the wake of the drugmaker's profit beat. Bank of America (BAC.N) , opens new tab slipped 2.0% even though the lender raised its profitability target. Health insurer Humana (HUM.N) , opens new tab dropped 6.0% after it reported third-quarter results, while Johnson Controls (JCI.N) , opens new tab, jumping 8.8%, was among the biggest gainers on the S&P 500 after its stronger-than-expected 2026 profit . Super Micro Computer (SMCI.O) , opens new tab tumbled 11.3% in the wake of the company's disappointing results. Advancing issues outnumbered decliners by a 2.09-to-1 ratio on the NYSE. There were 134 new highs and 120 new lows on the NYSE. On the Nasdaq, 3,006 stocks rose and 1,631 fell as advancing issues outnumbered decliners by a 1.84-to-1 ratio. The S&P 500 posted 25 new 52-week highs and 16 new lows while the Nasdaq Composite recorded 77 new highs and 170 new lows. Volume on U.S. exchanges was 19.17 billion shares, compared with the 20.96 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/sp-500-nasdaq-futures-slip-valuation-concerns-linger-2025-11-05/

2025-11-05 19:26

BofA targets 16%-18% ROTCE to narrow gap with rivals ROTCE forecast in line with Wall Street expectations Net interest income to grow 5%-7% annually over the next five years CEO says consumers remain healthy Shares fall BOSTON, Nov 5 (Reuters) - Bank of America (BAC.N) , opens new tab raised a closely watched profitability target on Wednesday as CEO Brian Moynihan laid out a plan to catch up with Wall Street rivals that includes tech investments and an expansion strategy. Moynihan and other top executives are convening in Boston for the bank's first investor day since 2011 to answer concerns about returns that have trailed peers. Sign up here. BofA is targeting a 16% to 18% return on tangible common equity - a metric investors use to assess a bank's performance - in the medium term, compared with its earlier forecast of a mid-teens return, aiming to narrow the gap. The bank generated a 15.4% ROTCE in the third quarter, while larger rival JPMorgan (JPM.N) , opens new tab achieved a 20% ROTCE in the same period, filings showed. BofA's target matched analysts' expectations. "ROTCE goals put BofA in the upper tier of peers. New targets appear achievable, though not particularly aggressive," Argus Research analyst Stephen Biggar said. Analysts said BofA will have to earn credibility as investors look for proof the goals will be reached. Barclays said the ROTCE target could have been better by 100 basis points to please investors. Shares of BofA, which fell 3% early, were down nearly 1.5% in late-afternoon trade. EXPANSION TO SIX U.S. CITIES As part of the plan, BofA is aiming to expand in six additional cities through 2028, including in Alabama, Louisiana and Ohio. The move would give it access to over $222 billion in deposits, targeting student, family and employee banking and a footprint in 85% of U.S. households. "We will truly cover America in a densified - all eight lines of business - focused way. A nationwide franchise for this density and this capability in all those cities is a unique advantage," Moynihan said. He later told reporters the bank has no plans for acquisitions outside the United States, but could look at U.S. payment businesses. In 2021, BofA acquired Axia Technologies, a healthcare payment and technology company. Moynihan also said the bank's increasing use of artificial intelligence will change the amount of work done by employees, but added it will not necessarily lower headcount. "What I can see is changing the amount of work per thing done." For investment banking, another key business, BofA aims to increase its share of fees by between 50 and 100 basis points in the next three to five years, seeking to catch up as it has consistently lagged rivals JPMorgan and Goldman Sachs (GS.N) , opens new tab. The M&A pipeline was improving, business head Matthew Koder said. "More larger deals than ever before ... more sole or lead adviser positions than ever before," he told investors. On the trading front, BofA is aiming to capture 9% of the industry revenue pool in the medium term. It now has a 7.6% market share. The wealth business is targeting 4% to 5% net new asset growth in the medium term, adding fee-generating assets worth $135 billion to $150 billion annually. "Market share gains are much easier said than done, and peers will also be stepping up their game as the investment banking environment continues to improve," Biggar noted. CONSUMER CREDIT STABLE BofA said U.S. economic growth remains solid even as employment data shows signs of weakness, with consumer spending up 5% this year based on the bank's data. Consumer credit is stable, BofA said. "Consumers remain active ... Employment remained steady. We can see that in the paychecks coming into our consumer accounts," Moynihan said. However, Moynihan said he was mindful of regulatory changes. "We're all watching further regulatory changes, government debt levels and the impact on the economy, trade policies." BofA expects net interest income - the difference between what banks earn on loans and pay on deposits - to grow by 5% to 7% annually over the next five years, driven by loan growth and fixed-rate asset repricing. Profit per share is expected to grow more than 12%. Following a rocky start after Moynihan took the helm in 2010 in the aftermath of the 2008 financial crisis, he engineered a momentous turnaround, driven by an oft-repeated mantra of "responsible growth," but investors are urging the bank to make a higher return on its investments. https://www.reuters.com/business/finance/bank-america-raises-return-target-bid-catch-up-with-rivals-2025-11-05/

2025-11-05 19:18

LONDON/SOFIA, Nov 5 (Reuters) - Bulgaria is drafting legal changes that will allow it to seize control of sanctioned Russian oil major Lukoil's (LKOH.MM) , opens new tab Burgas refinery and sell it to a new owner to protect the plant from U.S. sanctions, local media reported. Burgas is Bulgaria's only oil refinery, and was a key part of Lukoil's foreign business empire, which began to unravel in recent days after the U.S. joined Britain last month in imposing sanctions on Russia's two largest oil companies over Moscow's war in Ukraine. Sign up here. The draft legislation, first reported by Bulgarian outlet Mediapool on Wednesday, would permit a special manager, if appointed, to oversee the sale of the Burgas oil refinery, which owner Lukoil (LKOH.MM) , opens new tab would have no right to vote on or appeal against, the reports said. "There is a lot of logic in this, which is why today we will submit a draft law on the special governor," public broadcaster BNT quoted Boyko Borissov, former prime minister and leader of the GERB party - which heads Bulgaria's coalition government - as saying. Appointing a special manager to take temporary operational control of Lukoil's Bulgaria operation would "ensure energy security, prevent a supply crisis, and proactively mitigate the risk of future or secondary sanctions," according to Martin Vladimirov, director of energy and climate at the Bulgaria-based Center for the Study of Democracy. A QUESTION OF OWNERSHIP On October 30, Lukoil announced that global commodity trading house Gunvor would acquire its foreign assets. For now it remains unclear how Gunvor will manage the huge deals, and whether it will take over each of Lukoil's foreign assets. Speaking to Bloomberg Television on Tuesday, Gunvor chief executive Torbjorn Tornqvist said "there are assets perhaps we would feel would be better preserved in other hands", but did not elaborate. Gunvor did not immediately respond to Reuters' request for comment, which was sent outside European business hours. Lukoil has been under pressure to sell the Burgas refinery due to Western sanctions against Russia. It set a $2 billion price tag, RIA news agency reported in January. Bulgaria introduced the provision for a special manager for critical infrastructure at Burgas in 2023. https://www.reuters.com/business/energy/bulgaria-drafts-law-help-sale-us-sanctioned-russian-owned-oil-refinery-report-2025-11-05/