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Dow Jones Today: Tesla Tumbles on Tepid Sales; Stocks Slump as Treasury Yields Climb to 2024 Highs – Investopedia

Oil prices near six-month high ahead of Wednesday’s OPEC+ meeting

25 minutes ago

Global oil prices continued to soar on Tuesday amid a combination of supply and demand factors that threaten to push Brent crude prices above $90 per barrel for the first time in six months.

On the eve of Wednesday’s latest meeting of the Organization of the Petroleum Exporting Countries, known as OPEC+, Brent for May delivery rose to $89.06.

Oil prices have risen about 15% so far this year. It reflects several market factors. Recent developments include continued turmoil in the Middle East, Ukrainian drone attacks on Russian refineries, and Mexico’s decision to suspend some crude oil exports as it prepares to open new refineries.

At the root of these factors is the OPEC+ production cuts enacted last year. Those cuts are likely to remain unchanged at Wednesday’s meeting, after the organization last month extended them through June. Some analysts say the cuts will continue into the rest of the year.

-Lyle Niedens

SLB acquires Champion X for $7.8 billion to expand oilfield services

1 hour 43 minutes ago

Shares of Champion

SLB announced that ChampionX investors will receive 0.735 shares of SLB for each share of ChampionX owned. That’s $40.59 per share, a 14.7% premium over ChampionX’s Monday closing price.

This is SLB’s second major acquisition in the past week. Last Wednesday, the company announced a $380 million deal to acquire a majority stake in Norway’s Aker Carbon Capture.

SLB noted that the ChampionX transaction is expected to be completed by the end of this year.

ChampionX stock rose about 8% to $38.19 Tuesday afternoon, its highest level in nearly five years. SLB stock fell 2.7% to $53.73.

-Bill McCall

US IPO market makes long-awaited comeback in Q1

2 hours 16 minutes ago

Initial public offerings (IPOs) in the United States have finally returned after a nearly two-year drought.

In the first quarter of 2024, 30 IPOs raised a total of $7.8 billion, according to data from Renaissance Capital. While the number of deals was little changed from the same quarter in 2023, capital raised tripled thanks to the resurgence of large tech-related services like Reddit (RDDT) and Astera Labs (ALAB).

Half of last quarter’s IPOs raised more than $100 million, the highest in a quarter since 2021, including Finnish sporting goods maker Amer Sports (AS) and Kazakh fintech company Kaspi. Two IPOs of kz (KSPI) exceeded $1 billion.

Renaissance predicts that “IPOs will clearly increase from spring to summer,” as new entrants in the first quarter have performed well since their debut. Reddit soared nearly 50% on its first day of trading and was up 45% in its first week. The Renaissance IPO index rose 10.1% in the same quarter, just shy of the S&P 500’s 10.6% return. The average quarterly return for the largest products ($100 million or more) was 24%.

PVH stock plummets after luxury apparel maker issues soft outlook

2 hours 58 minutes ago

PVH (PVH) stock prices rose after the company reported weaker-than-expected sales growth in the fourth quarter, citing cautious wholesale customers and challenging conditions in its European business, and issued weaker-than-expected sales guidance for the quarter and full year. As a result, prices plummeted.

The company, which owns popular brands such as Calvin Klein and Tommy Hilfiger, posted adjusted earnings of $3.72 per share for the quarter that ended Feb. 2 on flat sales of $2.49 billion. Analysts had expected earnings of $3.53 per share and revenue of $2.42 billion.

The New York-based apparel maker expects sales to fall 11% to $1.92 billion in the current quarter, falling short of the $2.08 billion expected by analysts. PVH expects full-year sales to contract 6% to 7% to about $8.62 billion, below street expectations of $9.15 billion.

PVH stock fell more than 22% to $107.83 on Tuesday morning, dropping the stock into negative territory (-12%) for the year.

-Timothy Smith

What you need to know ahead of Wednesday’s Disney shareholder meeting

4 hours 11 minutes ago

Disney (DIS) is scheduled to hold its annual shareholder meeting on Wednesday, with market participants looking for updates on the company’s proxy battle with activist investors and possible details about its parks division and streaming strategy. I’m keeping a close eye on it.

Ahead of the shareholder meeting, Bank of America and UBS analysts raised their price targets on the stock, citing Disney’s strategic priorities and solid theme park demand momentum.

Shareholders will vote on the company’s board at the meeting, which comes at the culmination of a months-long proxy battle between Disney and activist investors Tryon Group and Blackwells Group.

Disney is encouraging investors to vote on 12 of its nominees, including CEO Bob Iger, and Trion Group has added Nelson Peltz and Jay Laslo to its board of directors. Blackwells Group nominated three other director candidates.

At the shareholder meeting, Disney executives may also give investors more details about Disney’s parks division, which analysts expect will contribute to strong second-quarter earnings.

Read more about what to expect at Wednesday’s shareholder meeting.

-Naomi Buchanan

Humana stock falls as Medicare preferential interest rate disappoints

4 hours 48 minutes ago

Humana (HUM) falls in health care stocks on Tuesday morning after the Centers for Medicare and Medicaid Services (CMS) announced that federal payments for Medicare Advantage plans would be consistent with the original proposal outlined in January. This effectively squeezed the profit margins of medical insurance companies amid soaring medical costs. It costs money.

CMS announced that payments for Medicare Advantage plans will increase by an average of 3.7% from 2024 to 2025, or more than $16 billion. This is the same increase proposed in January.

The payment changes, excluding estimated increases in patient risk scores, represent a 0.16% decrease, which prompted health insurers to lobby for even larger increases after the initial proposal in January.

Humana, which warned in January that higher-than-expected medical costs covering Medicare Advantage patients would hurt full-year profits, was the hardest hit among health-care stocks. On Tuesday morning, the stock fell 13.3% to $304.56, the lowest level since the early days of the pandemic.

CVS Health (CVS), UnitedHealth Group (UNH), and Centene (CNC) also fell on the news, dropping 8.6%, 6.1%, and 5%, respectively.

-Timothy Smith

Tesla slumps due to first quarter delivery decline since 2020

5 hours 39 minutes ago

Tesla (TSLA) stock fell in pre-market trading on Tuesday after the electric car maker’s first-quarter delivery numbers were significantly lower than analysts expected.

Tesla delivered 386,810 cars in the first three months of this year, down 9% year-over-year and the first year-over-year decline since the second quarter of 2020. The company’s production volume was 433,371 units, a slowdown of only 2%. From the same quarter of 2023.

Analysts on average expected deliveries to be 457,000 vehicles, according to FactSet data.

Shares were down 6.6% to $163.75 just before the market opened on Wednesday, for a year-to-date decline of 34%.

Stocks that move the most before the market

5 hours 58 minutes ago

Profit:

  • ChampionX Corp. (CHX): Shares rose nearly 10% after SLB (SLB) (formerly Schlumberger) offered to buy the specialty chemicals company for about $8 billion in an all-stock deal.
  • Estée Lauder (EL): Shares of the cosmetics giant rose about 2% after Citi upgraded the stock to a “buy” rating, citing potential improvement in Asian markets.
  • BP (BP): The company’s stock rose more than 1% as oil prices rose on reports that OPEC+ is unlikely to change production plans at its next meeting on Wednesday.

loss:

  • PVH Corp. (PVH): The apparel company’s stock fell 22% after disappointing fourth-quarter sales growth amid European headwinds and a weaker-than-expected outlook for the current quarter. .
  • Humana Inc. (HUM): The health insurance company’s stock price fell after the government stuck to its previous proposal to raise payments for Medicare Advantage plans by an average of 3.7% next year, disappointing investors worried about rising health care costs. fell more than 9%. Peers CVS Health (CVS) and UnitedHealth Group (UNH) also fell premarket.
  • Trump Media & Technology Group (DJT): Shares of former President Donald Trump’s social media company fell 2%, continuing to fall after the company announced yesterday a net loss of $58 million in 2023.

Stock futures fall as Treasury yields rise to 2024 highs

6 hours 37 minutes ago

Futures contracts tied to the Dow Jones Industrial Average fell 0.6% in premarket trading Tuesday.

S&P 500 futures fell 0.4%.

Nasdaq 100 futures also traded 0.5% lower about an hour before the market opened.

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