2024-06-04 20:34

TSX ends down 0.63% at 21,978.18 Materials sector drops nearly 4% Energy falls 2.06%; oil settles down 1.31% Consumer staples gains 0.77% June 4 (Reuters) - Canada's main stock index fell on Tuesday to a near one-week low as signs of faltering global economic growth pressured commodity-linked stocks, and ahead of an expected move this week by the Bank of Canada to begin cutting interest rates. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) New Tab, opens new tab ended down 138.51 points, or 0.63%, at 21,978.18, its lowest closing level since last Wednesday. U.S. job openings fell in April to the lowest in more than three years in a sign that labor market conditions are softening. It follows data on Monday that showed a slowdown in U.S. manufacturing activity for a second straight month in May. "Any hint of weakness in the U.S. or the global economy doesn't bode well for commodity prices," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth, adding that after recent gains for resource shares the decline in commodity prices has been "used as an excuse to take some profits off the table." The materials sector (.GSPTTMT) New Tab, opens new tab, which includes metal miners and fertilizer companies, fell nearly 4% as gold and copper prices declined. Energy (.SPTTEN) New Tab, opens new tab also lost ground, falling 2.06%, as the price of oil settled 1.31% lower at &77.52 a barrel. Helping to limit the TSX's decline was a gain for the defensively-orientated consumer staples sector (.GSPTTCS) New Tab, opens new tab. It rose 0.77%, while the utilities group (.GSPTTUT) New Tab, opens new tab, which includes high-dividend paying stocks that could particularly benefit from rate cuts, added 0.23%. Investors see a roughly 80% chance that the Bank of Canada would cut rates on Wednesday for the first time since March 2020. "A lot will hinge on the Bank of Canada's rate decision tomorrow. It is shaping up to be a pretty pivotal day," Picardo said. Sign up here. https://www.reuters.com/markets/tsx-futures-edge-lower-commodity-prices-drop-2024-06-04/

2024-06-04 20:32

US job openings fall to lowest in more than three years Axos Financial drops after Hindenburg Research shorts stock Bath & Body Works falls on profit forecast revision Indexes up: Dow 0.36%, S&P 0.15%, Nasdaq 0.17% NEW YORK, June 4 (Reuters) - U.S. stocks ended a shade higher on Tuesday following softer-than-expected labor market data that reaffirmed expectations of an interest rate cut by the Federal Reserve. Data on Tuesday showed that U.S. job openings fell to their lowest level in more than three years in April, signaling an easing in labor market tightness that supported a Fed rate cut this year. The U.S. Treasury yields slipped following the report. Wall Street's main indexes gained ground after paring earlier loses. Equities in real estate (.SPLRCR) New Tab, opens new tab and consumer staples (.SPLRCS) New Tab, opens new tab sectors advanced ahead of others, while materials (.SPLRCM) New Tab, opens new tab and energy (.SPNY) New Tab, opens new tab stocks were the biggest losers. The labor market data was the latest in a string of recent reports that pointed to cooling U.S. economic growth. Data on Monday showed that U.S. manufacturing activity had slowed for the second straight month in May. "What we've seen in the data so far this week is that it's been relatively weak, starting with manufacturing PMI and job openings today," said James St. Aubin, chief investment officer at Sierra Mutual Funds in Santa Monica, California. "That has had a total effect of helping the rally in the bond market; but for the stock market, it's a double-edged sword because they're looking for a rate cut announcement, which has a rising probability with weaker data," St. Aubin added. Market expectations for a September rate reduction now stand around 65%, versus below 50% last week, according to the CME's FedWatch tool. The closely watched non-farm payrolls data for May is due on Friday. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 140.26 points, or 0.36%, to 38,711.29, the S&P 500 (.SPX) New Tab, opens new tab gained 7.94 points, or 0.15%, to 5,291.34 and the Nasdaq Composite (.IXIC) New Tab, opens new tab gained 28.38 points, or 0.17%, to 16,857.05. Megacap technology stocks, including Amazon.com (AMZN.O) New Tab, opens new tab, Alphabet (GOOGL.O) New Tab, opens new tab, Nvidia and Microsoft (MSFT.O) New Tab, opens new tab, ended higher after losing ground early in the session. Oil giants Exxon Mobil (XOM.N) New Tab, opens new tab and Chevron (CVX.N) New Tab, opens new tab fell 1.6% and 0.8%, respectively, as demand concerns weighed on crude prices. Bath & Body Works (BBWI.N) New Tab, opens new tab slumped 12.8% after a lower revision to its quarterly profit forecast. Axos Financial (AX.N) New Tab, opens new tab dropped after Hindenburg Research disclosed a short position in the lender. Paramount Global (PARA.O) New Tab, opens new tab fell 4.4% after the media conglomerate said it was exploring strategic options or a joint venture for its Paramount+ streaming service. Declining issues outnumbered advancers by a 1.32-to-1 ratio on the NYSE. On the Nasdaq, 1,468 stocks rose and 2,762 fell as declining issues outnumbered advancers by a 1.88-to-1 ratio. The S&P 500 posted 19 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 40 new highs and 134 new lows. Total volume of shares traded across U.S. exchanges was about 10.6 billion, compared with the 12.6 billion average over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/wall-street-futures-slip-sluggish-growth-fears-2024-06-04/

2024-06-04 20:16

WASHINGTON, June 4 (Reuters) - U.S. Senator Joe Manchin said on Tuesday he was urging U.S. companies to sue the Treasury Department over the local content rules it set for companies to receive clean energy tax credits under the Inflation Reduction Act (IRA). Manchin told U.S. Treasury Secretary Janet Yellen during a hearing of the Senate Appropriations Committee that U.S. manufacturers were being damaged by the content rules, which he said Treasury had halved from the original language in the law. "I'm encouraging every manufacturer to sue you, and I will do the amicus brief on (their) behalf .... and you'll lose every suit," he said, holding up posters comparing the content requirements included in the legislation with those set in final rules by Treasury, which is implementing the IRA. Manchin, often a thorn in the side of the Biden administration, last week left the Democratic Party and registered as an independent, blasting what he called "partisan extremism" in both major parties. The 76-year-old West Virginia lawmaker has been particularly incensed by Treasury's implementation of the IRA, arguing that its final local content rules have watered down the original intent of the bill and are hurting U.S. companies. He said last month that Treasury's final rule allowing automakers another year to use Chinese graphite and other critical minerals in battery production before switching to domestic sources would "break the law." Manchin and Arizona Senator Kyrsten Sinema were key votes on multiple pieces of legislation early in Democratic President Joe Biden's administration, including a massive infrastructure bill. Manchin told the hearing the IRA was written to ensure that the United States was not reliant on supply chains from China, but Treasury's implementation meant China would stay "in the market for the entire extent of the IRA." Yellen said the Biden administration shared Manchin's concerns about reliance on supplies from China, and offered to engage in technical discussions with Manchin about the concerns he raised during the hearing. Sign up here. https://www.reuters.com/world/us/us-sen-manchin-says-hes-encouraging-industry-sue-treasury-over-ev-tax-credits-2024-06-04/

2024-06-04 19:45

WASHINGTON, June 4 (Reuters) - Lawmakers want access to Boeing's full comprehensive quality improvement plan delivered to the Federal Aviation Administration, the top Democrat on the House Transportation and Infrastructure committee said Tuesday. Representative Rick Larsen said lawmakers want access to the plan after meeting behind closed doors with FAA Administrator Mike Whitaker, who in late February gave Boeing (BA.N) New Tab, opens new tab 90 days to develop a comprehensive plan to address "systemic quality-control issues." "We want to evaluate it ourselves," Larsen said. "The problems of Boeing in safety and culture were a long time in the making -- and the change in safety culture will be a long time in making as well," Larsen said. The FAA did not immediately comment. Boeing said Tuesday it is "working transparently with congressional leaders to provide the information requested about our Safety and Quality Plan." The planemaker last week released the plan's 11-page executive summary that disclosed six critical, safety-focused production areas it will address. Key performance measures include employee proficiency, number of hours to address issues, including the total number of rework hours per airplane, and supplier shortages. Whitaker in February barred Boeing from boosting production of its best-selling plane after a door panel blew out during a Jan. 5 flight on a new 737 MAX 9 operated by Alaska Airlines (ALK.N) New Tab, opens new tab. He said last week he did not expect Boeing to win approval to increase production of the MAX "in the next few months." Larsen expects the FAA to continue intense oversight of Boeing. "The inspectors at Boeing that FAA has put on the line are going to be there a long time -- this is going to be a sea change for the Federal Aviation Administration," he said. Rep Garret Graves, who chairs a subcommittee on aviation, wants the FAA to disclose how Boeing can get authority restored to boost production. "What exactly are the metrics that are going to be used to determine yes, you have hit the appropriate criteria," Graves asked. "This needs to be 100% math and science." Whitaker, who did not meet with reporters after the session, said last week that "regardless of how many planes Boeing builds, we need to see a strong and unwavering commitment to safety and quality that endures over time. This is about systemic change, and there's a lot of work to be done." Sign up here. https://www.reuters.com/world/us/us-house-lawmakers-seek-access-full-boeing-quality-plan-2024-06-04/

2024-06-04 19:40

WASHINGTON, June 4 (Reuters) - A group of Democratic U.S. House lawmakers asked the Justice Department on Tuesday to probe allegations of antitrust behavior among U.S. oil producers and OPEC and said the two largest U.S oil companies have been conspiring to keep fuel prices high. Nine House of Representatives Democrats, in a letter to Attorney General Merrick Garland, cited a complaint by the Federal Trade Commission (FTC) in May that alleged that the former CEO of Pioneer Resources engaged in an "outrageous scheme... to coordinate pricing between U.S. oil companies and foreign producers." The letter, led by Jerrold Nadler, the top Democrat on the House Judiciary Committee, also cited the big profits earned last year by Exxon Mobil Corp (XOM.N) New Tab, opens new tab and Chevron (CVX.N) New Tab, opens new tab, the two largest U.S. oil companies. "Major oil producers appear to be colluding with each other and foreign cartels to keep prices high, padding their profits at the expense of American consumers," the lawmakers said. "We urge you to use the full authority of the Department of Justice to investigate and, where necessary, prosecute this anticompetitive conduct," the letter said. On Exxon and Chevron, the lawmakers said: "But apparently, instead of passing those profits through to consumers in the form of cheaper products, the oil giants have been lining their own pockets while conspiring to keep prices high." Exxon and Chevron did not immediately respond to a request for comment. The Organization of the Petroleum Exporting Countries also did not immediately respond to a request for comment. In addition to Nadler, the letter was signed by Henry Jackson, Pramila Jayapal and seven other Democrats. Last month, the FTC approved Exxon Mobil's (XOM.N) New Tab, opens new tab $60 billion purchase of Pioneer Natural Resources, but barred former Pioneer CEO Scott Sheffield from Exxon's board on allegations he attempted to collude with OPEC to raise oil prices. Late last month, U.S. Senate Majority Leader Chuck Schumer and 22 of his Democratic colleagues sent a similar letter to Garland. Sheffield coordinated efforts with U.S. shale oil producers to constrain their output and raise energy prices, the FTC said on May 2. Sheffield, known for his long tenure and frank comments on industry output and spending, used his influence "to align oil production across the Permian Basin in West Texas and New Mexico with OPEC+," a production group that includes Russia as well as OPEC members, the FTC said at the time. Sheffield's lawyers have referred to comments made last month, when Sheffield asked the FTC to dismiss the ban. "At no time did government officials and Mr. Sheffield exchange competitively sensitive information," said Sheffield's counsel Cleary Gottlieb Steen & Hamilton. Sign up here. https://www.reuters.com/sustainability/us-lawmakers-ask-justice-department-probe-allegations-collusion-between-opec-oil-2024-06-04/

2024-06-04 18:58

STOCKHOLM, June 4 (Reuters) - The New York State Energy Research and Development Authority (NYSERDA) said on Tuesday it had finalized contracts for Equinor's (EQNR.OL) New Tab, opens new tab Empire Wind 1 and Orsted's (ORSTED.CO) New Tab, opens new tab and Eversource's (ES.N) New Tab, opens new tab Sunrise Wind offshore wind projects. NYSERDA in February awarded conditional contracts to buy electricity from two proposed offshore wind projects under a program meant to support the embattled industry and keep the state's ambitious clean energy goals on track. The state at the time selected the Empire Wind 1 project from Norway's Equinor and the Sunrise Wind facility being developed by Denmark's Orsted and U.S. power provider Eversource. Equinor said in a separate statement that it intends to bring in a partner to its project to reduce financial exposure. Both Equinor and Orsted took large financial hits on their U.S. offshore wind portfolios last year amid soaring costs and supply chain constraints. Sign up here. https://www.reuters.com/business/energy/new-york-finalizes-offshore-wind-contracts-equinor-orsted-projects-2024-06-04/