2024-07-03 23:15

Jobs data points to easing labor market ISM services PMI weaker than expected Paramount jumps on report of Skydance Media deal First Foundation slumps after capital raise Indexes: Dow -0.06%, S&P 0.5%, Nasdaq 0.88% July 3 (Reuters) - The S&P 500 index and technology-laden Nasdaq rose on Wednesday to post record high closes, as data pointing to a softening economy raised hopes the Federal Reserve could cut interest rates in September. The Dow Jones Industrial Average closed slightly lower, pressured by selling in healthcare and consumer stocks during a shortened trading session ahead of the Fourth of July. The market will stay closed on Thursday for U.S. Independence Day, keeping trading volumes thin throughout the week. Both the ADP Employment report and weekly jobless claims data pointed to easing labor market conditions ahead of Friday's closely watched non-farm payrolls report. Markets hope signs of weakness in the labor market will encourage the Fed to cut interest rates. "It's quite a strong unemployment claims number, and it's fitting in with an overall trend that's probably an indication of loosening up in the jobs market. It must be quite welcoming for the Fed," said David Morrison, Trade Nation senior market analyst. Also, PMI data from the Institute for Supply Management was weaker than expected, and factory orders unexpectedly slumped. Investors boosted bets of a September rate cut to over 70%, as per LSEG's FedWatch. The Fed's June meeting minutes are due after the market closes. Tesla (TSLA.O) New Tab, opens new tab jumped 6.5%, trading near a six-month high after rising more than 10% on Tuesday following a smaller-than-expected drop in second-quarter vehicle deliveries. The Philadelphia SE Semiconductor Index (.SOX) New Tab, opens new tab rose 1.92%, helped by gains in the U.S. listing of Taiwan Semiconductor Manufacturing and Broadcom (AVGO.O) New Tab, opens new tab. Nvidia (NVDA.O) New Tab, opens new tab closed 4.6% higher, after slipping on Tuesday, while some other mega-stocks were weaker such as Amazon (AMZN.O) New Tab, opens new tab, closing 1.2% lower. "The tendency at the moment is towards rotation ... we have quite a few days where we see the Russell down, and tech up and vice versa," Morrison said, though noting that the market's optimism around megacap tech stocks was still strong. The S&P 500 has jumped over 15% in the first half of 2024, largely supported by top-tier high momentum technology-related stocks. The benchmark index's equal-weighted counterpart (.SPXEW) New Tab, opens new tab only rose 5% and small and mid-cap stocks have significantly lagged. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab fell 23.85 points, or 0.06%, to close at 39,308.00, the S&P 500 (.SPX) New Tab, opens new tab gained 28.01 points, or 0.51%, to 5,537.02 and the Nasdaq Composite (.IXIC) New Tab, opens new tab gained 159.54 points, or 0.88%, to 18,188.30. Paramount Global (PARA.O) New Tab, opens new tab rose almost 7% after Shari Redstone's National Amusements reached a preliminary deal to sell its controlling interest in the media giant to David Ellison's Skydance Media. First Foundation (FFWM.N) New Tab, opens new tab slumped nearly 24% after the lender, which holds a huge portfolio of multifamily real estate loans, disclosed a $228 million unexpected capital raise. Advancing issues outnumbered decliners by a 2.65-to-1 ratio on the NYSE. There were 287 new highs and 50 new lows on the NYSE. The S&P 500 posted 20 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 51 new highs and 114 new lows. Volume for the abbreviated session on U.S. exchanges was 7.11 billion shares, compared with the 11.64 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-inch-up-anticipation-economic-data-fed-meeting-minutes-2024-07-03/

2024-07-03 22:45

July 3 (Reuters) - A huge swath of the United States will experience dangerously high temperatures on Wednesday - just ahead of the long Fourth of July weekend - meteorologists said, while a fast-moving California wildfire has forced thousands of residents to evacuate their homes. Some 110 million people in 21 states across the West, the southern Plains and the Mid-Atlantic will spend their holiday under heat-related advisories and warnings. Temperatures were expected to soar well past 100 degrees Fahrenheit (38 degrees Celsius) over the next several days, the National Weather Service said. "It's really hot; I don't know how else to put it," said Jacob Asherman, a meteorologist with the National Weather Service's Weather Prediction Center in College Park, Maryland. "We're having excessively hot weather across a lot of the country." The scorching weather sets in just as the country begins the Independence Day weekend, a holiday when many Americans head to the outdoors for firework displays, parades, music festivals and the like. Portland, Oregon, where conditions are typically mild, was expected to reach 100 F (38 C) on Friday, breaking a record for the date, while in Jackson, Mississippi, known for its hot weather, the temperature was expected to reach 114 F (46 C), the service said. When Portland native Jen Scott, a hardware store manager, was a kid, "It was a big deal if it hit 90," she said. Early July days would typically top out in the low 80s. "But for the last few years, it's been getting extra hot. But 100 is crazy," she said. "We're not used to this." Scott, who manages Pearl Ace Hardware in Portland, said fans and air conditioners have been flying off the shelves. "Remember to stay hydrated, avoid strenuous outdoor activities, and make sure neighbors, relatives, pets have a cool place to spend the day," the weather service's Jackson office said on X. In the Southwest, Phoenix was expected to hit 113 F (45 C) on Wednesday and 116 F (47 C) by Friday with little relief in sight. Last summer, Arizona's capital sizzled with a record-breaking 54 consecutive days when the temperature reached 110 F (43 C) and higher, including 31 consecutive days through July. The brutal heat, coupled with fierce gusts of wind and low humidity in Northern California, were particularly challenging for the 500 firefighters who were battling the so-called Thompson Fire, which broke out on Tuesday morning. The unchecked blaze, which has burned 2,000 acres (809 hectares) in Butte County and the city of Oroville, forced some 13,000 residents to flee their homes, according to fire officials and media. Photographs and video footage from the area located about 65 miles (105 km) north of Sacramento, the state capital, showed flames ripping through structures and torching vehicles. Smoke from the fire and other blazes burning in Northern California was drifting south into San Francisco, where 7.7 million Bay Area residents were encouraged to limit driving and not set off Fourth of July fireworks due to the low air quality. Sign up here. https://www.reuters.com/world/us/fourth-july-scorcher-set-quarter-united-states-2024-07-03/

2024-07-03 22:35

SALTA, Argentina, July 3 (Reuters) - France's Eramet (ERMT.PA) New Tab, opens new tab aims to start production at its new Centenario lithium plant in Argentina in November and ramp up to 24,000 metric tons of battery grade lithium by mid-2025, it said on Wednesday after starting the final test phase at the plant. The $870 million plant, a joint venture with Chinese nickel and steel giant Tsingshan, is likely to be among the first worldwide to use an innovative processing system called direct lithium extraction, or DLE, at commercial scale. That makes it a key test for the promising technology that helps speed up lithium production even as governments and car makers race to secure supply of the ultra-light metal needed for many of the batteries that power electric vehicles. Argentina, which sits in South America's so-called "lithium triangle," is the world's fourth largest producer of the metal and is looking to rev up output with a slate of new projects set to come online later this year. Eramet's Centenario project, in northern Salta province, is set to be the first to start production, with the company now testing the equipment and production processes in a key phase known as commissioning. Eramet, which owns 50.1% of the project, is requesting permits for a second plant with a capacity of 30,000 tons, with construction likely to begin next year. It plans to eventually build a third plant of the same size. The company is hopeful that a recent new economic reform bill passed in Argentina's Senate that includes plans to incentivize large investments, including tax sweeteners and ease of access to currency exchange markets, could help boost those expansion plans. "The most important for us is the free currency exchange, the freedom to bring dollars to get dollars out," said Eramet CEO Christel Bories in an interview with Reuters. Looking at neighboring Chile, she said the country has struggled to draw as many new lithium projects as in Argentina, but that Eramet planned to keep pressing ahead to develop a lithium project. The company bought a mining concession last year in a lithium salt flat and is evaluating whether to submit a proposal to work with state-run miner Codelco on a major new lithium project in the Maricunga salt flat. It is partnering with junior mining companies as well on exploration. "Our objective is to gradually build a portfolio of very early stage to more mature opportunities in Chile," said Geoff Streeton, Eramet's head of strategy. "We're also conscious that that requires giving the time and space for the Chilean lithium policy to develop," he said. Sign up here. https://www.reuters.com/business/autos-transportation/frances-eramet-targets-november-production-start-argentina-lithium-plant-2024-07-03/

2024-07-03 22:08

LOS ANGELES, July 3 (Reuters) - Opponents of California's ambitious targets for electric car adoption to lower greenhouse gas emissions took their case to the U.S. Supreme Court this week, the latest salvo against the state's campaign to fight climate change. Energy companies, corn growers and industry associations have long opposed strong environmental rules in California, for decades the only state with power to request a waiver from the Environmental Protection Agency (EPA) to set its own vehicle emissions regulations that are more stringent than the federal standard. The EPA made that exception because the nation's most populous state has unique factors like geography and a large number of vehicles that make smog a worse problem than in other states. Other states are allowed to adopt California's stricter tailpipe emission rules, and automakers tend to follow to avoid having to produce different vehicles for different states. In its request for hearing, filed on Tuesday, Valero Energy Corp's (VLO.N) New Tab, opens new tab Diamond Alternative Energy and other plaintiffs said EPA's grant of a waiver for California's Advanced Clean Car program for model years 2015 through 2025 enabled the state to "operate as a quasi-federal regulator on global climate change." The Diamond plaintiffs rely on the Supreme Court's 2022 ruling in West Virginia v. EPA. That decision invoked the "major questions" doctrine, which requires explicit congressional authorization before regulators can take consequential actions on issues of vast economic, political and societal impact. California Governor Gavin Newsom wants the state to be a leader in fighting climate change and has targeted transportation because it accounts for roughly a quarter of emissions. A spokesperson for the governor was not immediately available for comment. This request for a Supreme Court review comes as oil companies, farming groups that contribute to the production of ethanol, trucking firms and business associations also are suing in state and federal court to stop California's rules aimed at slashing greenhouse gas emissions from boxy package delivery trucks to long-distance semi trucks. The Clean Air Act, which EPA relies on for setting tailpipe emissions rules, does not expressly address greenhouse gas emissions from mobile sources such as cars and trucks. Plaintiffs in Tuesday's filing also said California does not meet the legal requirement for "compelling and extraordinary" provisions that would justify a waiver. "Climate change is not an 'extraordinary' condition within California" because it is global and not local, they said. California also does not need its own emissions standards to meet global climate change since its efforts would have no discernable effect on those conditions in the state, they added. The question of whether California may set greenhouse gas emissions for itself and other states "is undeniably major," the plaintiffs said, especially since California has the EPA for a waiver for its plan to end sales of gasoline-only vehicles by 2035. "The waiver and authority claimed here are the key parts of a coordinated agency strategy to convert the Nation from liquid-fuel-powered vehicles to electric vehicles," the filing said, pointing out that would hurt demand for petroleum fuels and biofuels. Other plaintiffs include American Fuel & Petrochemical Manufacturers, Kansas Corn Growers Association and the National Association of Convenience Stores. Sign up here. https://www.reuters.com/legal/foes-californias-electric-car-targets-take-their-case-us-supreme-court-2024-07-03/

2024-07-03 21:52

July 4 (Reuters) - A look at the day ahead in Asian markets. World and U.S. stocks at record highs, a UK general election and Japanese asset prices stretched to historical levels - there's a lot for investors in Asia to chew over on Thursday even though liquidity will be thinned out by the July 4 U.S. holiday. Indeed, markets in Asia may be more vulnerable to higher volatility and outsized moves precisely because trading volumes will be much lighter than usual. The global backdrop to the Asian open on Thursday, however, looks positive after stocks rose broadly on Wednesday, the dollar weakened and Treasury yields fell - a classic collective market-friendly loosening of financial conditions. The minutes of the Fed's June 11 to 12 policy meeting released on Wednesday echoed remarks from Fed Chair Jerome Powell this week that price pressures are cooling. Good news. More ominously, however, the "vast majority of participants" think U.S. economic activity is cooling too, and this was backed up by disappointing service sector data and another downward revision to the Atlanta Fed's GDP growth tracker. Treasury yields tumbled for a second day - wiping out the Donald Trump and French election-fueled spike on Monday - paving the way for another leap to another high for the S&P 500 and Nasdaq. Currency traders will be extra vigilant for sharp moves in the yen and intervention from Japan to prevent its depreciation from snow-balling, especially with U.S. markets closed. The yen hit a fresh 38-year low around 162.00 per dollar on Wednesday. As yet, Tokyo has not showed its hand, and perhaps it won't - the yen's decline seems reasonably orderly, and yen volatility across the curve is relatively subdued. But it's worth remembering that Tokyo's last two yen-buying forays into the market on April 29 and May 1 were carried out in illiquid points in the global trading day or holiday-thinned trading. Traders will be on their guard. Not only is the yen selling off consistently, so too are Japanese bonds. The 10-year JGB yield on Wednesday hit 1.10% and the spread over the two-year JGB yield widened to 75 basis points. That's the yen at a 38-year low, the 10-year bond yield around its highest in 13 years, and the yield curve rapidly steepening. Plus, the Nikkei is within a whisker of breaking March's record high. These are big levels and big moves for Japanese assets. The potential for some sort of pullback must surely be rising. Thursday's economic calendar is light, with only Hong Kong PMI and Australian trade on tap. Friday's calendar is a lot busier, with inflation from Taiwan, Thailand and the Philippines, current account data from South Korea, retail sales figures from Singapore and household spending numbers from Japan all scheduled for release. Here are key developments that could provide more direction to markets on Thursday: - Hong Kong PMI (June) - Australia trade (May) - Thai central bank chief Sethaput Suthiwartnarueput speaks Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-07-03/

2024-07-03 21:47

ABUJA, July 3 (Reuters) - Nigeria's upstream oil regulator has approved two key onshore assets sale by international oil companies, clearing the way for Oando and new entrant Project Odinmim, to acquire assets, the head of the agency, Gbenga Komolafe, said on Wednesday. Nigerian Upstream Petroleum Regulatory Commission (NUPRC) greenlit deals by Eni's (ENI.MI) New Tab, opens new tab local unit Nigerian Agip Oil Company (NAOC) to Oando (OANDO.LG) New Tab, opens new tab and Equinor (EQNR.OL) New Tab, opens new tab to Project Odinmim, Komolafe announced at an energy conference in Abuja, the capital. The deals had been pending for months as they required sign-off from the petroleum minister under a recently enacted oil industry law. Approvals for Exxon Mobil's $1.3 billion asset sale to Seplat and Shell's divestment to Renaissance remain pending. "The signing ceremony will be conducted in the next few days," Komolafe said. Eni had previously announced the sale of its NAOC subsidiary to Oando in September. The deal included interests in four onshore oil mining leases (OML) 60, 61, 62, and 63. The NUPRC showed in a chart that of four transactions in the oil sector so far, two have been approved, one was on a yellow flag and the other in abeyance. Oil majors operating in Nigeria have been exiting their onshore fields hampered by theft, vandalism and pollution to focus on deepwater explorations. In May, the NUPRC offered faster approvals for pending asset sales by the majors if they took responsibility for spills and compensated communities rather than wait for authorities to apportion liability, which could lead to further delay deals. (This story has been corrected to fix attribution and comment to NUPRC, not Oando, in paragraph 6) Sign up here. https://www.reuters.com/markets/deals/nigerian-oil-regulator-approves-eni-equinor-assets-sale-2024-07-03/