Royal Dutch Shell Stock – Stock Market Inches Higher as Oil Prices Continue to Rise
Stocks inched higher on Wednesday, as investors await U.S. jobs data scheduled for release on Thursday and Friday. Lower bond yields weren’t hurting.
Worries about inflation and how the Federal Reserve may manage it are simmering in the background, ahead of an expected strong jump in payrolls for May on Friday. For Wednesday, investors will get the Fed’s Beige Book collection of economic anecdotes.
“Wednesday could be a day where the markets tread water, saving their energies for the U.S. jobs focused sessions on Thursday and Friday, which bring the unemployment claims and latest nonfarm data respectively,“ said Connor Campbell, financial analyst at Spreadex, to clients in a note.
Stocks picked up steam as the 10-year Treasury yield fell to an intraday low of 1.59% shortly after the open. A strong jobs reading would be an inflationary signal, but a weak reading could indicate limited labor supply and wage inflation. The fear that the Federal Reserve soon takes action to send bond yields higher seems to be on hold Wednesday. Lower long-dated bond yields boost the value of future cash flows and therefore stock valuations.
“Things get better if the Fed is goldilocks, the labor market recovers, inflation is anchored, yields stay low and 2022 EPS expectations rise,” writes
founder of Sevens Report Research.
In Asia, the CSI 300 fell 1%, while the
index surged 3.2%. In Europe, the
Stoxx Europe 600
rose 0.2%, with energy names such as
Royal Dutch Shell
providing some support. Those gains came as oil prices reached for new highs, a day after the Organization of the Petroleum Exporting Countries and its allies agreed to keep a plan to gradually lift oil production through July in place, and reportedly forecast a jump in world demand this year.
After settling at the highest levels in more than two years, U.S. and global oil benchmarks continued to rise on Wednesday.
Meanwhile, the U.S. dollar climbed to a record high against the Turkish lira, after President
Recep Tayyip Erdoğan
said he had asked the country’s central bank to cut interest rates. The dollar rose as high as 8.6872 from 8.5369 on Tuesday. Erdoğan, who has frequently made calls for lower interest rates and fired several central bank officials over the years, reportedly made the comments in an interview with state broadcaster TRT Haber late on Tuesday.
Zoom Video Communications
(ticker: ZM) fell 1.3% even after the videoconferencing producer reported stronger-than-forecast earnings and raised its outlook for the year. Computer-server maker Hewlett-Packard Enterprise (HPE) also topped estimates and lifted its outlook.
Shares of electric-car maker
((TSLA)) slipped 2.1%. The Wall Street Journal reported late on Thursday that the company was told last year that Chief Executive
had twice violated a court-ordered policy requiring his tweets to get preapproval from the company’s lawyers, according to records obtained by The Wall Street Journal.
(AMC) surged 24.2%. Shares of the movie-theater chain operator and popular meme stock climbed on Tuesday, after the company said it sold $230.5 million in stock to Mudrick Capital Management LP. The rally stuck, even after Bloomberg reported that Mudrick promptly sold off its stake at a profit.
(BB) stock, another meme play, gained 11.4%.
(DXC) stock gained 2.9% after getting upgraded to Overweight from Equal Weight at Wells Fargo.
(CGC) gained 0.7% after getting upgraded to Hold from Sell at Canaccord Genuity.
Write to Jacob Sonenshine at [email protected]