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Oil Prices Ride the Chinese Express: Fuelling High Hopes and Sticky Speedometers!

Oil prices are surfing a wave of optimism in the Asian trading arena this Friday, thanks to China’s latest stimulus moves. It’s like oil has its own personal cheerleader in the world’s top importer! These prices haven’t been this high since the days when “November 2022” was just a twinkle in the calendar’s eye.

China’s decision to trim the reserve requirement ratio for local banks by 25 basis points – for the second time this year, no less – is like a financial trampoline, bouncing liquidity into the Chinese economy and providing a potential boost to their economic growth.

It’s a bit like giving a shot of espresso to a weary marathon runner. China’s economy has been sputtering post-COVID, with August data resembling a stubbornly stuck speedometer needle. But with every basis point snipped, oil prices are riding the hopes of a faster finish line.

Moving Markets

Dow futures tick higher; Adobe dips 2% after earnings

U.S stock were trading in a tight range during Thursday’s evening deals, following a positive session for major benchmark averages as Arm’s IPO debut boosted sentiment.

By 7:00pm ET (11:00pm GMT) Dow Jones Futures, S&P 500 Futures and Nasdaq 100 Futures were each up by 0.1%.

In extended deals, Adobe Systems Incorporated (NASDAQ:ADBE) fell 2% after the company reported Q4 EPS of $4.09 versus $3.97 expected on revenues of $4.89 billion versus $4.87 billion.

Copart Inc (NASDAQ:CPRT) was little changed after the company posted EPS of $0.34 versus $0.32 with revenues coming in at $997.6 million versus $962.78 million expected.

Lennar Corporation (NYSE:LEN) fell 0.4% after reporting Q3 EPS of $3.91 versus $3.51 expected on $8.7 billion versus $8.49 billion expected.

Ahead in Friday’s trade, investors will be monitoring import and export price index data, NY Empire State manufacturing index, industrial production, as well as preliminary Michigan consumer sentiment and expectations.

During Wednesday’s regular trade, the Dow Jones Industrial Average jumped 331.6 points or 1% to 34,907.1, the S&P 500 added 37.7 points or 0.8% to 4,505.1 and the NASDAQ Composite gained 112.5 points or 0.8% to 13,926.1.

On the data front, annualized produce price index data came in at 1.6%, ahead of 1.2% expected and increasing from last month’s print of 0.8%.

On the bond markets, United States 10-Year rates were at 4.286%.


Coterra Energy (CTRA) Rides High with 0.85% Gain, Anticipation Builds for Earnings Report

Coterra Energy (CTRA) strutted its stuff in the latest trading session, closing at $28.55 with a +0.85% swagger from the previous day. It’s like CTRA decided to take the lead in the stock market dance-off, leaving the S&P 500 trying to keep up with its slick moves (it managed a 0.84% shuffle). Not to be outdone, the Dow joined the groove with a 0.96% twirl, while the tech-savvy Nasdaq gracefully glided up by 0.81%.

If you’ve been following CTRA lately, you might think it’s been practicing its dance routine, gaining 2.72% in the past month. The Oils-Energy sector joined in with its own shimmy, gaining 2.52%, while the S&P 500 did more of a slow waltz with a modest 0.19% step.

As we approach CTRA’s upcoming earnings report, investors are hoping it’s got some killer moves hidden up its sleeves. Analysts are whispering about earnings of $0.46 per share, but they’re warning us to brace for a year-over-year decline of 67.61%. Meanwhile, the Zacks Consensus Estimate for revenue predicts a routine of net sales to the tune of $1.38 billion, down 45.4% from the year-ago period.

Looking at the big picture, CTRA’s full-year Zacks Consensus Estimates are singing a different tune, calling for earnings of $2.29 per share and revenue of $5.87 billion. These numbers suggest a year-over-year change of -53.64% for earnings and a -35.19% beat for revenue, respectively.

But hold onto your top hats and tap shoes, folks! Analyst estimates for Coterra Energy have been doing the cha-cha lately, showing us that the stock market dance floor can get pretty crowded. Positive estimate revisions typically signal that analysts are breaking out their best dance moves in optimism about the company’s future performance. So, grab your partner and get ready for some trading tango!

UAW Drives a Hard Bargain: Motor City’s Contract Negotiations Shift into High Gear!

It seems like a blockbuster showdown is brewing in Motor City as the United Auto Workers (UAW) rev up for a simultaneous strike against the Detroit Three carmakers. With the clock ticking down to the contract deadline, the situation is getting as tense as a high-speed chase scene.

The UAW, representing a whopping 146,000 American auto workers, is reaching for the stars with their demands – they’re gunning for 40% pay raises until 2027 and a full overhaul of their benefits, calling it an “audacious” move. If agreements don’t materialize by the stroke of midnight, we might see a series of UAW strikes targeting undisclosed auto plants, making this contract showdown as suspenseful as an evening at the movies.

Smart investing on a Friday is like the grand finale of a fireworks show – it’s the perfect way to cap off the week with a bang! While others are counting down the minutes to the weekend, savvy investors are counting their potential profits. So, whether you’re sipping your morning coffee or raising a glass to the end of the workweek, remember that Fridays aren’t just for casual Fridays – they’re for financially fabulous Fridays. Cheers to wise choices and weekend wealth!