2024-04-29 22:35

Tesla gains after clearing self-driving hurdles in China Apple rises after report of talks with OpenAI Domino's Pizza beats sales expectations, shares up Indexes up: Dow up 0.38%, S&P up 0.32%, Nasdaq up 0.35% NEW YORK, April 29 (Reuters) - U.S. stocks ended higher on Monday, with sharp gains for Tesla and Apple leading the way, as investors looked toward what the Federal Reserve would say about the interest rate outlook after its policy meeting this week. Traders expected the Fed to keep rates unchanged while striking a hawkish tone. Tesla (TSLA.O) New Tab, opens new tab shares surged 15.3%, after the electric vehicle maker made progress in securing regulatory approval to launch its advanced driver-assistance program in China, its second-largest market after the U.S. Apple (AAPL.O) New Tab, opens new tab gained 2.5% following a report that the iPhone maker had renewed discussions with OpenAI about using the startup's generative artificial intelligence (AI) technology. Bernstein upgraded Apple's stock to "outperform". Other megacap stocks finished lower including Alphabet (GOOGL.O) New Tab, opens new tab, Meta Platforms (META.O) New Tab, opens new tab, and Microsoft (MSFT.O) New Tab, opens new tab. Nvidia (NVDA.O) New Tab, opens new tab closed higher after paring early losses. Nine out of 11 S&P 500 sectors (.SPX) New Tab, opens new tab ended higher led by stocks in consumer discretionary, utilities, real estates, materials and industrials. Equities in communication services and financials were the biggest losers. "The bigger question than rates, because they're not going to cut this week, is how hawkish they're going to speak because they've already been pretty hawkish," said Thomas Hayes, chairman at hedge fund Great Hill Capital in New York. Money markets are pricing in about 35 basis points (bps) of interest rate cuts this year, down from about 150 bps seen at the beginning of the year, according to LSEG. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 146.43 points, or 0.38%, to 38,386.09, the S&P 500 (.SPX) New Tab, opens new tab gained 16.21 points, or 0.32%, to 5,116.17 and the Nasdaq Composite (.IXIC) New Tab, opens new tab gained 55.18 points, or 0.35%, to 15,983.08. Shares of Domino's Pizza (DPZ.N) New Tab, opens new tab jumped 5.6% after topping expectations for first-quarter same-store sales. Of the 233 companies in the S&P 500 that have reported quarterly earnings, 78.1% surpassed analyst expectations, compared with a long-term average of 67%, according to LSEG data. Paramount Global (PARA.O) New Tab, opens new tab gained 2.9% after a report that the Redstone family and Skydance Media CEO David Ellison have made concessions to make a potential change in control of the streaming firm more appealing for other investors. "The overall momentum is still to the upside and it's an important week, with a ton of earnings, the Fed on Wednesday and nonfarm payrolls on Friday, and the path of least resistance is higher," said Bill Strazzullo, chief market strategist at Bell Curve Trading in Boston. Meanwhile, the Japanese yen jumped against the dollar on Monday, with traders citing yen-buying intervention by authorities trying to support a currency languishing at levels last seen over three decades ago. Advancing issues outnumbered decliners by a 2.72-to-1 ratio on the NYSE. On the Nasdaq, 2,615 stocks rose and 1,604 fell as advancing issues outnumbered decliners by a 1.63-to-1 ratio. The S&P 500 posted 20 new 52-week highs and one new low while the Nasdaq recorded 80 new highs and 69 new lows. Volume on U.S. exchanges was 9.98 billion shares, compared with the 11 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-inch-up-megacaps-extend-gains-fed-verdict-tap-2024-04-29/

2024-04-29 22:06

April 29 (Reuters) - Oil and gas firm Diamondback Energy (FANG.O) New Tab, opens new tab said on Monday it had received a second request from the U.S. Federal Trade Commission (FTC) in connection with the $26 billion deal to buy privately-held Endeavor. The U.S. antitrust regulator has asked for additional information and documentary material as part of its review of the proposed merger. CONTEXT Midland, Texas-based Diamondback had said in February it would buy privately held rival Endeavor Energy Partners in a cash-and-stock deal, which is expected to close in the fourth quarter. The combined company would be the third-largest oil and gas producer in the Permian Basin of West Texas and New Mexico, behind Exxon Mobil (XOM.N) New Tab, opens new tab and Chevron (CVX.N) New Tab, opens new tab. U.S. lawmakers have sought increased scrutiny of multi-billion dollar deals in the oil and gas industry from the FTC. WHY IT IS IMPORTANT This is the fifth oil and gas deal since December to get a second request from the FTC. Other deals to receive second notices include the Exxon (XOM.N) New Tab, opens new tab - Pioneer (PXD.N) New Tab, opens new tab, Chevron (CVX.N) New Tab, opens new tab - Hess (HES.N) New Tab, opens new tab and Occidental (OXY.N) New Tab, opens new tab - Crownrock (CROWR.UL). Earlier this month, Chesapeake Energy (CHK.O) New Tab, opens new tab and Southwestern Energy (SWN.N) New Tab, opens new tab said the closing date of their proposed $7.4 billion merger had been pushed back to the second half of the year after receiving a second request for information from the FTC. BY THE NUMBERS The combined Diamondback-Endeavor company would pump 816,000 barrels of oil and gas per day (boepd), behind the Exxon-Pioneer combination of about 1.3 million boepd and Chevron's 867,000 boepd in the basin. Sign up here. https://www.reuters.com/markets/commodities/diamondback-energy-endeavor-receive-second-ftc-request-over-26-bln-deal-2024-04-29/

2024-04-29 21:46

April 30 (Reuters) - A look at the day ahead in Asian markets. Asian FX traders will be on heightened Japanese intervention alert again on Tuesday after Tokyo reportedly stepped into the market on Monday, catapulting the yen up from a 34-year low of 160 per dollar and onto a roller-coaster ride of volatility. It was the dollar's breach of 160 yen that appears to have snapped the Ministry of Finance New Tab, opens new tab's patience. The yen's rebound was perhaps exaggerated because Japan was closed for a public holiday on Monday - the dollar fell as low as 154.50 yen - so market liquidity will return to more normal levels on Tuesday. Chinese stocks have opened the week strongly, hitting a six-month high as property sector sentiment improves, and Tesla shares' 15% surge on Monday following Elon Musk's visit to Beijing can only be supportive of Chinese markets and tech more broadly. A pullback in U.S. bond yields - 5.00% on the two-year yield once again proving to be a firm ceiling - will also help cement the upbeat backdrop to the market open in Asia on Tuesday. The regional economic data and events calendar is overflowing with potential market-moving releases, included among them: Chinese PMIs, Japanese retail sales, unemployment and industrial production, Bank of Korea meeting minutes and Australian retail sales. The currencies of all these countries will be sensitive to these releases, particularly in light of the yen's roller-coaster ride and Japan's reported yen-buying intervention on Monday. The yen ended up strengthening 1.5% against the dollar on Monday, its biggest one-day rise this year, but that barely clawed back the ground lost in its 1.6% slump on Friday, the day of the Bank of Japan's policy announcement. Indeed, at around 156.00 per dollar, the yen goes into Asian trading on Tuesday slightly weaker than it was before the BOJ's decision. If Tokyo did intervene, it has clearly managed to relieve the selling pressure on the yen, but how long that lasts remains to be seen. The last time Japan intervened in the FX market was October 2022, when it spent around $40 billion to buy yen when the currency was around 152.00 per dollar. It took more than a year for the yen to get back to that level, and a further five months to break it. The current economic climate and market conditions are different of course, and perhaps Japan's resolve is stronger now than it was then. Comments from Japan's top currency diplomat, Masato Kanda, were pretty pointed: "The developments we're seeing now ... can be described as speculative, rapid and abnormal volatility. The damage such moves inflicts on the economy is hard to overlook." One suspects yen bears will be looking over their shoulders quite a bit in the coming days. Here are key developments that could provide more direction to markets on Tuesday: - China manufacturing and services PMIs (April) - Japan retail sales, unemployment, industrial output (March) - Bank of Korea meeting minutes Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-04-29/

2024-04-29 21:32

RIO DE JANEIRO, April 29 (Reuters) - Brazilian state-run oil company Petrobras (PETR4.SA) New Tab, opens new tab said on Monday its crude oil production during the first quarter rose 4.4% compared to the same period last year. Petrobras pumped 2.24 million barrels per day (bpd) in the period, the firm said in a statement, crediting the increase in production to the ramp-up of five platforms and the start of production in 19 wells in the Campos and Santos basins. The firm produced 2.78 million barrels of oil equivalent per day (boepd) from January to March, a 3.7% increase over the same period of 2023. Of its total production, about 67% came from the firm's pre-salt fields, an oil-rich offshore region off the country's southeastern Atlantic coast. There, production increased by 9.1%, helping counter a decrease in output from other fields. Total exports fell by 4.4% on a year-on-year basis, with 848,000 bpd of oil and derivatives exported in the period. Oil exports fell 11.3%. When compared to the previous quarter, however, the firm noted an increase of 2.5% in oil exports, to which it credits changes in the market caused by the conflict in the Middle East. "The conflict in the Middle East caused instability in maritime freight transport and, consequently, a change in the flows of our oil exports," said Petrobras, highlighting an increase in exports to China and other Asian countries. Sales of oil, gas and derivatives amounted to 2.92 million boepd, a 4.6% decrease year-on-year. The decline was due in part to an increase of biofuel in the mixture of fuel sold in the country. Petrobras is expected to post its full financial results for the first quarter on May 13. Sign up here. https://www.reuters.com/markets/commodities/brazils-petrobras-first-quarter-oil-production-rises-by-44-2024-04-29/

2024-04-29 21:15

April 29 (Reuters) - The global upstream industry could see dealmaking worth another $150 billion throughout the remainder of the year, with focus shifting to shale plays in U.S. other than the Permian Basin, analysts at Rystad Energy said in a report. M&A activity in the global upstream industry has already crossed the $64 billion mark this year, most of it focused around the U.S. shale patch. WHY ITS IMPORTANT M&A activity in the first-quarter in North America was nearly $54 billion, or 83%, of the worldwide total and the region is expected to be the driving force for consolidation for the rest of the year, the report said. THE CONTEXT The Permian Basin, which spans across western Texas and southeastern New Mexico, has been the focus for most deals in the year, with companies vying to get a hold of assets located in the patch. Other shale plays in the U.S. are also set to attract significant investments, with about $41 billion worth of non-Permian opportunities on the market, according to the report, like the potential sale of Exxon Mobil's Bakken portfolio in North Dakota. BY THE NUMBERS Globally, dealmaking in the sector increased 145% year-over-year (y-o-y) in the first-quarter to $64 billion, and was the highest since 2019, per the report. Outside the U.S., dealmaking remained strong in the first quarter, with $10.5 billion changing hands, a 5% y-o-y increase. The demand for gas-producing resources represented about 66% of total oil and gas producing assets bought and sold. KEY QUOTES "...with appetite still strong, deal-hungry players are looking outside the (Permian) basin for acquisitions. A power shift could be on the cards, with non-Permian assets taking center stage in the future North American deals pipeline," said Atul Raina, vice president of upstream research at Rystad Energy. Sign up here. https://www.reuters.com/business/energy/global-upstream-sector-set-deals-worth-150-bln-over-rest-2024-report-says-2024-04-29/

2024-04-29 21:14

CHICAGO, April 29 (Reuters) - The U.S. government said on Monday it is collecting samples of ground beef at retail stores in states with outbreaks of bird flu in dairy cows for testing, but remains confident the meat supply is safe. Federal officials are seeking to verify the safety of milk and meat after confirming the H5N1 virus in 34 dairy cattle herds in nine states since late March, and in one person in Texas. Both the U.S. Centers for Disease Control and Prevention and the World Health Organization have said the overall public health risk is low, but is higher for those with exposure to infected animals. Scientists believe outbreaks are more widespread in cows than officially reported based on findings of H5N1 particles in about 20% of milk samples. The U.S. Food and Drug Administration said on Friday that preliminary results of gold-standard PCR tests showed pasteurization killed the bird flu virus in milk, though. The U.S. Department of Agriculture will analyze retail ground beef samples with PCR tests that indicate "whether any viral particles are present," and conduct two other safety studies, according to a statement. Some dairy cows are processed into ground beef when they grow old. "USDA's additional testing is appropriate to ensure public health is protected and to stop the spread of animal disease," said Sarah Little, spokesperson for the Meat Institute, an industry group representing meat processors USDA on Monday began requiring lactating dairy cows to test negative for bird flu before being moved across state lines as officials seek to contain the virus. The department said this weekend that testing is not required for cows that are shipped over state lines directly to slaughter facilities from barns where they are sold. Those cattle only need documentation showing they were inspected by a veterinarian. USDA said it inspects each animal before slaughter, and all cattle carcasses must pass inspection after slaughter to enter the human food supply. USDA is now also collecting beef muscle samples at slaughter facilities of dairy cattle that have been condemned to determine the presence of viral particles, according to the statement. Any positive PCR tests for retail or slaughter samples will be evaluated for live virus, the USDA said. Last week, USDA said it had found bird flu in a lung tissue sample from an asymptomatic dairy cow that was sent to slaughter from an infected herd. The animal did not enter the food supply, according to the department. In another safety study, USDA will cook ground beef containing a "virus surrogate" at different temperatures to assess how it inactivates the virus, according to the statement. It said cooking meat to a safe internal temperature kills bacteria and viruses. Colombia restricted the import of beef and beef products coming from U.S. states where dairy cows have tested positive for avian influenza as of April 15, according to the USDA. There are no known cases of bird flu in beef cattle so far. The human case in the current outbreak was in a Texas farm worker who suffered conjunctivitis following exposure to dairy cows. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/usda-test-ground-beef-us-states-with-outbreaks-bird-flu-dairy-cows-2024-04-29/