2024-10-10 22:41

Oct 10 (Reuters) - Diamondback Energy (FANG.O) , opens new tab on Thursday signaled lower prices for its third-quarter oil and gas production, making it the third U.S. shale producer to do so in just a week. Oil prices declined in the July-September quarter due to concerns about global oil demand growth. Meanwhile, U.S. natural gas prices have collapsed to multi-year lows in 2024, with prices in the Waha hub in West Texas turning negative a record number of times. Diamondback said average hedged realized prices for the third-quarter oil production were $72.32 per barrel, down from $78.55 in the second quarter. The company realized 60 cents per thousand cubic feet (Mcf) of natural gas sales after hedging in the three months ended Sept. 30, compared with $1.03 per Mcf in the April-June period. However, it realized a loss of 26 cents Mcf of unhedged natural gas sales during the third quarter. Diamondback's warning comes just a day after Occidental Petroleum (OXY.N) , opens new tab flagged lower prices for its production. Industry bellwether Exxon Mobil (XOM.N) , opens new tab warned last week that it could take a hit of up to $1 billion to its upstream profits. The company reported a non-cash gain of $135 million from derivatives during the third quarter, compared with a non-cash gain of $46 million in the prior quarter. Earlier this month, Diamondback had raised its third-quarter production forecast to reflect the $26 billion acquisition of Endeavor Energy. It expects to produce between 565,000 to 569,000 barrels of oil equivalent per day in the quarter. Sign up here. https://www.reuters.com/business/energy/diamondback-energy-flags-lower-oil-gas-prices-third-quarter-2024-10-10/

2024-10-10 22:39

September CPI data higher than expected Unemployment claims higher than estimates Delta Air Lines shares fall after Q3 results Energy stocks track oil prices higher Banks to kick off Q3 earnings season on Friday Oct 10 (Reuters) - Wall Street's main indexes closed lower on Thursday as investors looked to higher-than-expected inflation and unemployment claims for indications on the health of the U.S. economy and the path for interest rates. The closely watched Consumer Price Index rose 0.2% on a monthly basis in September and 2.4% on an annual basis, with both figures being slightly higher than estimated by economists polled by Reuters. The core figure, which excludes volatile food and energy prices, rose 3.3% year-over-year, versus an estimate of 3.2%. In a separate report released on Thursday, jobless claims also rose to 258,000 for the week ending Oct. 5, versus an estimate of 230,000. "Investors were torn between a stronger than expected CPI report and a weaker than expected unemployment claims report," said Jack Ablin, chief investment officer at Cresset Capital in Chicago. "One showed inflation running hotter than expected and the other showed the economy looking weaker than expected. It's the worst of both worlds." After the economic data, traders were pricing in a roughly 80% probability that the Federal Reserve will cut rates by 25 basis points at its meeting in November and a roughly 20% chance it would leave rates unchanged, according to CME's FedWatch. Atlanta Federal Reserve Bank President Raphael Bostic on Thursday said he would be "totally comfortable" skipping an interest-rate cut at an upcoming meeting of the U.S. central bank, adding that the "choppiness" in recent data on inflation and employment may warrant leaving rates on hold in November. Chicago Fed President Austan Goolsbee said he sees "gradual" rate cuts over the next year-and-a-half, while the New York Fed's John Williams said he still sees rate reductions ahead. The Dow Jones Industrial Average (.DJI) , opens new tab fell 57.88 points, or 0.14%, to 42,454.12, the S&P 500 (.SPX) , opens new tab lost 11.99 points, or 0.21%, to 5,780.05 and the Nasdaq Composite (.IXIC) , opens new tab lost 9.57 points, or 0.05%, to 18,282.05. Both the S&P 500 (.SPX) , opens new tab and the Dow had notched record closing highs in the previous day's session. Only three of the S&P 500's 11 major industry sectors advanced on Thursday with energy (.SPNY) , opens new tab, adding 0.8% and outperforming the rest as oil prices rose. Oil futures rallied as U.S. fuel use spiked ahead of Hurricane Milton, which made landfall on Florida's west coast late on Wednesday. Oil prices are also being supported by supply concerns related to conflicts in the Middle East. Investors are also preparing for the third-quarter earnings season, with major banks scheduled to report results on Friday. The third-quarter earnings growth rate for the S&P 500 is estimated to come in at 5% year-over-year, according to estimates compiled by LSEG. In individual stocks, Delta Air Lines (DAL.N) , opens new tab fell 1% after it forecast quarterly revenue below expectations in anticipation of slower travel spending. Other airlines also lost ground with American Airlines (AAL.O) , opens new tab, ending down 1.4%. Shares of Pfizer (PFE.N) , opens new tab fell 2.8% as former executives distanced themselves from activist investor Starboard's campaign against the drugmaker. On U.S. exchanges, 11.02 billion shares changed hands compared with the 12.06 billion moving average for the last 20 sessions. Declining issues outnumbered advancers by a 1.39-to-1 ratio on the NYSE where there were 185 new highs and 55 new lows. On the Nasdaq, 1,616 stocks rose and 2,576 fell as declining issues outnumbered advancers by a 1.59-to-1 ratio. The S&P 500 posted 22 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 60 new highs and 163 new lows. Sign up here. https://www.reuters.com/markets/us/futures-dip-ahead-key-inflation-data-2024-10-10/

2024-10-10 21:52

Oct 11 (Reuters) - A look at the day ahead in Asian markets. Investors in Asia enter the final trading day of the week with sentiment dented a bit by surprisingly sticky U.S. inflation the day before, and with a sense of caution ahead of keenly-awaited news on China's stimulus plans , opens new tab from Beijing the following day. Wall Street only posted mild losses on Thursday, the downside perhaps cushioned by soft weekly jobless claims figures that would suggest the Fed remains on track to cut interest rates a further 50 basis points this year. Asia will struggle to get much of a steer from Treasuries or the dollar either - the greenback ended flat on Thursday, and yields were mixed across the curve in narrow ranges. Traders have scaled back their expectations of Fed rate cuts since last week's stellar U.S. employment report, but are not quite at the point of pricing in a pause in the cycle. Yet that's what Atlanta Fed president Raphael Bostic floated on Thursday. Could incoming data really lead to a skip soon? The highlight in Asia's calendar on Friday is the Bank of Korea's interest rate decision. Economists expect the BOK to deliver its first interest rate cut since the pandemic, kicking off the easing cycle with a 25 basis point cut to 3.25%. All but three of the 37 economists in a Reuters poll expect that from the BOK, and the rest said they expect no change. Analysts generally expect the BOK to move more slowly than its regional peers in the coming months. Inflation eased rapidly to 1.6% in September from 2% in August, the lowest since early 2021 and below the BOK's 2% target, but household debt and property prices are high. Indian trade data, industrial output figures from Malaysia and New Zealand's manufacturing purchasing managers index for September make up the rest of the region's calendar on Friday. New Zealand's manufacturing activity has been shrinking every month since March last year, the PMIs show, although the pace of contraction has slowed sharply the last two months. This release comes days after the country's central bank cut interest rates by half a percentage point and signaled that further easing will follow. Looking ahead to Saturday, all eyes will be on Beijing, where China's finance ministry will detail plans on fiscal stimulus to boost the economy. It is unclear whether this means fresh fiscal steps to revive growth will be taken, or that the package of measures announced recently will be explained in greater detail. Hope, if not expectation, is building that it's the former. If it's the latter, investors are likely to be disappointed and there's a good chance that the stunning rally in Chinese stocks over the last two weeks reverses on Monday, perhaps significantly. Here are key developments that could provide more direction to markets on Friday: - South Korea interest rate decision - India trade (September) - New Zealand manufacturing PMI (September) Sign up here. https://www.reuters.com/markets/global-markets-view-asia-graphic-2024-10-10/

2024-10-10 21:50

Residents relieved as damage less severe than expected Hurricane Milton downgraded before landfall, reducing storm surge Significant damage includes Tropicana Field roof and fallen crane ST. PETERSBURG, Florida, Oct 10 (Reuters) - Residents of St. Petersburg, Florida, who decided to ride out Hurricane Milton despite dire warnings and mandatory evacuation orders emerged from their homes on Thursday morning to find their city largely intact after the powerful storm's overnight passage. In the downtown, situated alongside Tampa Bay, many streets avoided flooding, boats in the city marina fared well and damage to the city's buildings appeared limited. That is not to say the city came away completely unscathed. The hurricane's shredding winds ripped a gaping hole in the fabric roof of St. Petersburg's Tropicana Field, home of the Tampa Bay Rays baseball team, scattered tree limbs across many streets and brought down power lines. Even so, Steve Kicksee, 40, who lives across the street from the stadium, said the overall damage he was seeing was not as bad as expected. "I thought it was going to be a lot worse." The wind also toppled a construction crane that sliced off a corner of the Johnson Pope building on First Avenue South, home to the Tampa Bay Times newspaper. Its crumpled boom stretched from one end of the street to the other. "That, to me, is shocking and crazy to see," said Alberta Momenthy, 27, who lives in a nearby studio that didn't get damaged. "It looks like it kind of keeled over, and the building caught it and got a little destroyed." Chase Pierce, a 25-year-old electrician's apprentice who was also surveying the damage caused by the crane, said he was surprised and relieved to see minimal damage in the surrounding area, despite the spectacle of the fallen crane. In the days before Milton made landfall just south of Tampa Bay, forecasters and political leaders were speaking about the coming storm in historical terms. It had intensified from a tropical storm to a Category 5 hurricane - the highest classification - in about a day, and appeared destined to become the first major storm to make a direct hit on Tampa Bay in a century, triggering a huge storm surge that might have swamped the densely populated area. In the event, the storm lost some of its intensity by the time it made landfall south of Tampa Bay on Wednesday evening, and the surge that had been feared never materialized. Some streets in Pierce's neighborhood in west St. Petersburg, near the President Barack Obama Library, were covered with a couple of feet (60 cm) of water, he said. He took advantage of the conditions to kayak a half mile (800 meters) down the road. Pierce said he saw some homes that were flooded, although the water had stopped just short of his property. Dozens of tree limbs, some as thick as a weight lifter's thigh, also littered the streets. Some of the city's roads were left with pockets of dead traffic lights, and along Dr. Martin Luther King Jr. Street, a set of traffic signals hung about five feet (1.5 meter) off the ground. In front of the Vinoy Marina, a sea wall had collapsed, taking a walkway with it. "Wow, the sidewalk is gone," said Barbara Deininger, who gazed at workers setting up barricades as she walked her family's golden retriever. Pierce and his girlfriend, Kelsie Jacobson, 27, said they saw transformers blowing up and blue sparks flying. A power line fell in the backyard, but they said they were grateful the storm had some mercy on St. Petersburg. "I think if this is all we got, I feel we're very blessed," said Pierce. "I still have my house, still have my car, everything." Sign up here. https://www.reuters.com/world/us/floridas-st-petersburg-holdouts-awaken-find-milton-took-mercy-their-city-2024-10-10/

2024-10-10 21:33

LONDON, Oct 10 (Reuters) - Spain's largest power company, Iberdrola (IBE.MC) , opens new tab, will invest up to 12 billion pounds ($15.7 billion) in its British division Scottish Power over the next four years, doubling its commitment in the UK ahead of a global investment summit in London. The investment comes as Britain's new Labour government tries to drum up billions of pounds in foreign investment into the country as it marks 100 days in office and welcomes global business leaders for the Oct. 14 summit. "We are creating the conditions for businesses to thrive, and our International Investment Summit will be a springboard for every part of the UK to be an engine of innovation and investment," British Prime Minister Keir Starmer said in a statement on Thursday. Around two-thirds of Iberdrola's investment would go into power transmission and distribution networks, the company said. Britain's energy system operator has said some 58 billion pounds of investment will be needed in the country's power grids to handle the huge increase in renewable power projects expected as Britain strives to meet climate targets. The Labour government's plans to decarbonise the electricity sector by 2030 also require a big increase in renewable power capacity such as wind and solar. "The clear policy direction, stable regulatory frameworks and overall attractiveness of the UK are leading us to double our investments for 2024-28," Iberdrola Executive Chairman and Scottish Power Chairman Ignacio Galan said. Galan will join Starmer in Scotland on Friday to make the announcement, where the British leader will also meet with regional mayors and first ministers in a Council of Nations and Regions meeting focused on growth and investment. Starmer's office also confirmed investments by Danish offshore wind farm developer Orsted (ORSTED.CO) , opens new tab worth 8 billion pounds and another worth 2.5 billion pounds from floating offshore wind project Green Volt into UK wind farms. ($1 = 0.7662 pounds) Sign up here. https://www.reuters.com/business/energy/spains-iberdrola-invest-157-billion-scottish-power-division-2024-10-10/

2024-10-10 21:26

Oct 10 (Reuters) - Major League Baseball's Tampa Bay Rays said on Thursday it could take weeks to assess the damage to its ballpark which had nearly its entire roof torn off as Hurricane Milton cut a destructive path across Florida. The Rays, who are next scheduled to play at home on March 27 when they open their 2025 season, said nobody was hurt by the damage to the ballpark in St. Petersburg during the storm that hit Florida's west coast on Wednesday as a Category 3 hurricane. "Over the coming days and weeks, we expect to be able to assess the true condition of Tropicana Field. In the meantime, we are working with law enforcement to secure the building," the Rays said in a statement posted on X. "We ask for your patience at this time, and we encourage those who can to donate to organizations in our community that are assisting those directly impacted by these storms." Prior to the storm, the Florida Division of Emergency Management planned to turn the ballpark into the site of a 10,000-person base camp to support debris removal operations and host responders after the storm. According to the Rays' media guide, its stadium features the "world's largest cable-supported domed roof" and is made of "six acres of translucent, Teflon-coated fiberglass and supports itself with 180 miles of cables connected by struts." It was also built to withstand winds of up to 115 miles per hour. Drone images that circulated online showed nearly the entire roof of the Rays' home ballpark ripped to shreds with remnants flapping in the wind and debris littering the field below. The Rays did not qualify for the ongoing MLB playoffs, which marks the first time since 2018 they missed the postseason. Sign up here. https://www.reuters.com/business/environment/could-take-weeks-assess-hurricane-milton-damage-rays-stadium-2024-10-10/