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In oil. Major US stock indexes closed in positive territory on Thursday, fueled by rising energy stocks and oil prices after reports of oil tanker attacks near Iran. Chinese Vice Premier Liu He said on Thursday that Beijing will soon announce more policies to support the growth and liquidity of financial markets in the face of growing US trade pressure.
Lululemon Athletica
(ticker: LULU) rose as investors looked forward to the company's latest financial results and outlook. Chinese giant of e-commerce
Alibaba Group Holding
(BABA) has filed confidential documents for a second listing on the Hong Kong Stock Exchange, which would raise up to $ 20 billion. Today After the bell, we …
- speculate on the impact of Iranian oil tanker attacks on the world oil market;
- observe how the stock market has always reacted to rate cuts;
- and explain why Facebook was excluded from a key index.
Tankers Down, price rising
The inverted shares after two consecutive losses fell back into the black on Thursday. the
Dow Jones Industrial Average
increased by 101.94 points, or 0.39%, to 26106.77, while the
S & P 500
gained 11.80 points, or 0.41%, to 2891.64 and the
Nasdaq Composite
added 44.41 points, or 0.57%, to 7837.13.
Oil prices soared Thursday after two tankers carrying refined petroleum products were attacked in waters near Iran. This is not the first incident of this type in the region, where tensions are high. Four tankers were attacked with explosives at a port near the United Arab Emirates last month. The United States blamed these attacks on Iran and sent an aircraft carrier and jet fighters over there last month, although Iran denied any involvement.
The attacks correspond to Iran's recent tendency to react to the tightening of US sanctions, Paul Sheldon, chief geopolitical advisor with S & P Global Platts Analytics, wrote Thursday. "Similar incidents in the coming months would not be surprising, as they target the interests and allies of the United States while offering Iran a credible refusal."
Brent, the global benchmark, rose 2.23% to 61.31 USD and West Texas oil gained 2.23% to 52.28 USD. It's not just the two tankers. About one-third of all oil ships shipped around the world take the Strait of Hormuz where the attacks took place. While a direct US-Iranian conflict – or a closure of the Hormuz Strait – remains a long struggle, any clue that the lane is not safe would pose an increased risk of supply disruption. in oil and increase demand for stocks in the second half of the year. l & # 39; year.
Investors have taken a positive sign of some of the latest weak economic data, believing that this could increase the chances of Fed rate cuts at its July meeting. If this happens, it will be the first rate cut since the central bank started raising rates in December 2015. How does the market fit into such past scenarios?
Not bad. Since 1984, seven rate reductions have occurred after at least one rate increase, writes LPL strategist Ryan Detrick in a note on Thursday. While the last two cuts – in January 2001 and September 2007 – were followed by poor performance over the next 12 months, the other 5 reductions posted substantial gains, with the S & P 500 recording a median return of 13.9 % a year. This should reassure investors that a potential reduction in rates may not be as worrying as many believe, according to Detrick.
(FB) has been removed from the ESG index of S & P Index, abbreviation of environmental, social and governance. In particular, the index providers said that the misuse of customer data by the company and the hacking of 50 million user accounts were among the reasons. The news came a day after Facebook CEO Mark Zuckerberg was made aware of his company's questionable privacy practices, questioning the founder's commitment to user privacy. According to the S & P Dow Jones index, Facebook held a weighting of 2.5% in the S & P 500 ESG index, even exceeding its weighting of 1.9% in the S index & P 500 of the time.
Still, the market did not seem to care too much about the news. Facebook action jumped 1.4% Thursday to reach $ 177.47 action, with a rise of more than 35% this year, while the S & P 500 index has progressed 15%. The company released better than expected first quarter results in April. German Bank analyst Lloyd Walmsley Wednesday reiterated its purchase rating for Facebook shares, estimating that the company could generate billions of advertising revenue from its Watch video offering in the coming years.
The hot stock
American Airlines
(AAL) increased 6.4% to $ 33.09 after JP Morgan noted that the airline had increased its domestic rates by $ 5. Other airlines, including
Southwest Airlines
(LUV), up 3.1%, and
Hawaiian Airlines
(HA), up 2.3%, also increased ticket prices recently.
The biggest loser
Monster Drink
(MNST) stock fell 5.4% to $ 60.60 at the close of the market. It is down 6.5% from a week earlier after the company said at a shareholders meeting earlier in the month that it was awaiting the results of its arbitration with
Coca Cola
(KO) to be announced by the end of the quarter.
Write to Evie Liu at [email protected]
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