Oil Approached $91 and a big leap on Wall Street thanks to corporate profits

different dynamics indices Oil stock markets US stock Wall Street

Oil Approached $91 and a big leap on Wall Street thanks to corporate profits

Oil Approached $91 and a big leap on Wall Street thanks to corporate profits: Oil Approached $91 per barrel,
on the backdrop of what the American Petroleum Institute announced on the decline in US inventories. 

Evest follows market developments in the following report.


Oil rose following US inventories decline

A big leap in US stock indices against the backdrop of brilliant corporate financial data

How did US stocks do?

Stock markets in Europe end trading with different dynamics

The corporate reporting


Oil rose following US inventories decline

Oil prices kept rising on Wednesday, following data from the American Petroleum Institute, as US fuel reserves declined in the week ending February 4,
falling by 2.025 million barrels after falling by 1.645 million barrels the previous week.

If data from the United States Department of Energy confirm this, the decline in inventories will be observed for three consecutive weeks. 

Experts surveyed by Standard & Poor’s Global Platts projected an average weekly increase in United States oil inventories by 100 thousand barrels,
gasoline stocks by 1.4 million barrels and distillates inventories by 600 thousand barrels.

Brent crude futures for April rose by $0.44 (0.48%) on the London Futures Exchange, to $91.22 per barrel.

Brent crude fell $1.91 (2.1 percent) to $90.78 per barrel on Tuesday.

By this time, West Texas Intermediate crude futures’ prices for March in electronic trading,
for the New York Mercantile Exchange (NYMEX) had risen by $0.45 (0.5%), to $89.81 per barrel.

During the previous session, the futures contract fell by $1.96 (2.2%) to $89.36 per barrel.

Oil prices returned to rise on Wednesday after falling following the results of the previous two sessions and approached a seven-year high.

According to analysts, “while the mood in the oil market remains positive, there are some factors that can create downward pressure.”

Experts say the de-escalation of the conflict between Russia and Ukraine,
as well as the progress of negotiations on Iran’s nuclear program, could contribute to lower prices.

A big leap in US stock indices against the backdrop of brilliant corporate financial data

US stock indices ended trading on Tuesday with significant growth,
and market participants followed corporate news and valuation data for the US foreign trade balance.

On Tuesday, the Dow Jones Industrial Index rose by 1.06% to 35462.78 points, showing the best dynamics this week.

Standard & Poor’s 500 Index rose by 0.84% to 4521.54 points. The Nasdaq Composite Index jumped by 1.28% to 14194.45 points.

The US trade deficit expanded to $80.7 billion in December from $79.3 billion revised in November,
according to the US Department of Commerce. 

Experts surveyed by Trading Economics predicted that the US trade deficit would expand,
by an average of $83 billion from the $80.2 billion announced earlier in November.

The main statistic this week will be the US Consumer Price Growth Rate Report in January, which will be released on Thursday.

Analysts surveyed by Trading Economics predict that inflation in the United States accelerated to 7.3% last month.

Concern about raising the federal interest rate has been among the reasons why the US stock market has become increasingly volatile in recent days.

The Fed is preparing to start tightening monetary policy at a time when the US economy is slowing and investors are more interested in reassessing assets.


How did US stocks do? 

DuPont de Nemours In’s capitalization rose by 6.3%.

The chemical company previously announced better than expected profits and revenues for the fourth quarter of 2021,
raised its profits and announced a new stock buyback program.

Harley-Davidson Inc’s stock price jumped 15.5%.

The company’s profit rebounded in the fourth quarter and revenue increased by 54%, exceeding analysts’ expectations.

Stocks of US fitness equipment company Peloton Interactive jumped 25%,
after reports of CEO John Foley leaving the board and a 20% reduction in the company’s staff.

In the meantime, Pfizer Inc.’s stock fell by 2.8% as the pharmaceutical company’s quarterly revenue fell short of analysts’ expectations.

The price of Nvidia Corp rose by 1.5% after news of the failure of the purchase of British processor developer Arm Holdings.

It was announced that a $40 billion deal had been canceled in September 2020 because of opposition from regulators.

Amgen stocks rose by 7.8 percent.

In the fourth quarter, the U.S. biotech company increased its net profit by 20%, although revenue was slightly worse than analysts expected.


Stock markets in Europe end trading with different dynamics

Western European stock markets showed no dynamics on Tuesday.

The composite index of the largest companies in the Stoxx Europe 600 region rose by only 0.01% to 465.34 points.

The French CAC40 index rose by 0.27%, the German DAX index – by 0.24%, and the British FTSE 100 index lost by 0.08%.

The Spanish IBEX 35 and the Italian FTSE MIB indices rose by 1.36% and 0.31% respectively.

The corporate reporting 

The corporate reporting season remains a focus for investors.

The British oil company BP Plc raised a key profit index in the last quarter thanks to higher oil and gas prices.

The annual profit at the same time has been the highest in the last eight years.

The company plans to allocate $1.5 billion to repurchase stocks before publishing the financial statements for the current quarter.

However, BP’s stocks fell by 2.4% on Tuesday due to falling global oil prices.

The German travel company TUI AG lost 0.8% even though its revenue in the first quarter quintupled to €2.37 billion,
and expects a strong performance this summer.

BNP Paribas, the largest French bank in terms of assets, added 0.5%,
although the bank’s quarterly revenue was worse than market expectations.

British online store chain Ocado Group PLC recorded a pre-tax loss of £176.9 million ($239.5 million) in 2021,
compared to a loss of £52.3 million in the previous year.

Ocado stocks fell by 13%.

Just Eat Takeaway.com food delivery services rose by 2.1% in Amsterdam’s trading.

The company stated that it would write off United States deposit receipts (ADRs) ,
from the NASDAQ stock exchange, citing high costs and low trading volumes.

Unilever’s capitalization rose by 0.5% following news that one of the world’s leading producers of food and household goods,
is selling Thai business to Unilever Life to RS Group.

The amount of the transaction has not been disclosed.

Stocks in French insurer AXA rose 2.2% after analysts at Morgan Stanley raised their recommendations to “best performance”.

The share of Electricite de France SA declined by 1.4% ,
after the French generation company cut its nuclear power forecast for the second time in a month.