Royal Dutch Shell Stock – Stocks Mixed as Pipeline Attack Sparks Fears of Higher Gas Prices
Global stocks traded mixed on Monday, with the Dow industrials hinting at possibly another record. But investors were keeping close watch on a major U.S. pipeline cyberattack that could lead to higher fuel prices, if not resolved within days.
Friday’s 266,000 April nonfarm payrolls gain marked the biggest missed forecast for economists’ predictions for those data since the 1990s, as many expected the month would see one million gains. But investors are now getting comfortable with the idea of lower-for-longer interest rates from the Federal Reserve.
“In an example of bad news being good news, the lower figure calmed the inflation and interest rate fears which had been overshadowing the markets’ recent progress,” said Richard Hunter, head of markets at Interactive Investor, in a note to clients.
“In the year to date, the pace of progress has been rapid with a gap appearing between the two main indices and the previously firing technology stocks, which have been under some pressure given the switch out of growth into value. The Dow Jones is ahead by 13.6%, the S&P 500 by 12.7% and the Nasdaq by 6.7%,” added Hunter.
Fears over higher energy prices were on the minds of some investors. Oil and gasoline prices rose following a cyberattack on a key fuel line in the U.S. operated by Georgia-based Colonial Pipeline, which delivers around 45% of fuel used by the East Coast.
“The existence of plentiful gasoline inventories does limit the impact of this attack for now, although the issue could become more pressing with each day that passes without resolution,” said Joshua Mahony, senior market analyst at IG, in a note to clients.
Mining stocks were climbing in Europe as iron ore futures surged in Singapore past $226 a ton, boosted by demand from China and general recovery for the global economy. Iron-ore prices also surged last week. July copper futures climbed another 2.5% to $4.8665 a pound after closing at a record high on Friday at nearly $4.75 a pound.
Copper prices gained 6.3% last week, the biggest weekly jump since the week ended Feb. 19. Goldman commodity analyst Nicholas Snowdon recently predicted copper could hit $6.80 by 2025. Shares of miners
climbed 1.8% and 1.3% in London, respectively.
(ENR) stock was flat, reversing an earlier gain after reporting a profit of 77 cents a share, beating forecasts for 60 cents a share, on sales of $685 million, above expectations for $625 million.
(ORCL) stock dropped 0.5% after getting downgraded to Equal Weight from Overweight at Barclays.
(FB) stock dropped 4.1% after getting downgraded to Neutral from Buy at Citigroup.
(GOOGL) stock dropped 2.7% after getting downgraded Neutral from Buy at Citigroup.
(FEYE) has gained 5.4% on reports it is helping deal with the ransomware attack on the Colonial Pipeline.
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