Business

Oil stocks are a winner after OPEC’s production cuts

The decision by OPEC to reduce oil production by 2,000,000 barrels per day has not been well received by the White House. The move will likely cause gas prices to rise, which won’t please consumers.

However, there is one winner from the whole ordeal: Oil stocks.

What’s the deal? The cartel of major oil producers, including Russia and Saudi Arabia, announced Wednesday their largest production cuts since the outbreak of the pandemic. Although the reduction, which is equivalent to around 2% of global oil demand will not begin until November, prices saw an immediate increase.

After the announcement, oil prices reached three-week highs. Brent crude oil, the international benchmark for oil prices, was just below $95 per barrel on Friday morning, an increase of about 6% from Monday.

As a result, US oil and gas stocks have prospered. The S&P 500 energy sector, which includes stocks such as Exxon Mobil, has seen a surge in trading.

(XOM), Chevron

(CVX) & Phillips 66

(PSX) — The index is up almost 15% for the week, while it is up 3.7% overall.

Because supply cuts translate into higher profits for energy companies. Stephen Ellis, a Morningstar senior analyst, stated that this will result in higher oil prices and greater cash flows. He stated that the production cut will result in higher dividends and stock purchases among energy companies.

Energy companies have had an extraordinary year so far.

Exxon Mobil has seen a more than 60% increase in sales year to date, Halliburton

(HAL) has risen nearly 25%, and Occidental Petroleum has risen nearly 25%

(OXY), boosted Warren Buffett’s Berkshire Hathaway

(BRKA) has increased its stake in the company by 127%. For the same period, the S&P 500 was down 22%.

The big picture: As supply shortages increase crude oil prices, energy companies in Europe and the United States have made staggering profits.

Exxon’s profit, exempting special items, was $17.6 Billion in the second quarter 2022, an increase of 273% over the previous year. Chevron’s second quarter profit also rose by 277% compared to the previous year.

These profits have been used largely by energy companies to reward shareholders and attract them. This makes their stock even more attractive. Major oil and gas companies are expected to repurchase shares at near-record levels this year. Bernstein Research estimates that the seven largest companies in the world, including Exxon Mobil and Chevron, will repurchase close to a record number of shares this year.

(BP) and Shell

(SHLX) are expected to return $38 billion to shareholders this year through buybacks. This would almost quadruple the $10 million in buybacks that were completed in 2021.

Quincy Krosby is chief global strategist at LPL Financial. He stated that companies are now more focused on shareholders than ever before. “The sector is being rewarded as a result. Analyst consensus is that clients should consider investing in these companies even if they are sold.

The bottom line: The stock market was saved by the energy sector in the second quarter. It appears that it will do the same for this quarter. This OPEC announcement could make the year 2022 the year for big energy.

As they wait for the Bureau of Labor Statistics’ monthly jobs report, investors are holding their breath.

All eyes will be on the labor market, which is one of the most important factors that will help determine the Federal Reserve’s next steps in fighting decades-high inflation.

According to Refinitiv estimates, the US economy will have added 250,000 jobs in September. This would be the lowest monthly job gain since December 2020.

Investors will be happy if the numbers are as good as they seem. A weakening labor force will cause inflation and wages to fall. This means that the Fed’s policy is effective and might stop pursuing aggressive interest rate increases.

My colleague Alicia Wallace reports that August’s jobs data indicated that the historically tight labor markets have loosened by a notch. The jobs report for August showed that America added 315,000 jobs, which is a lower level than the 512,000 average monthly gain in the past 12 months.

However, the headline jobs number, which is highly anticipated, is now falling. However, it’s still strong, according to BLS data. Prior to the pandemic, the monthly average was around 200,000.

The midterm elections are just over a month away and Wall Street hopes for gridlock.

According to Paul R. La Monica, an investor prefers it when politicians argue and little gets done.

Big returns in NYC are possible because of DC’s power splits. Edelman Financial Engines data shows that the S&P 500 has seen an annualized return 16.9% over the nine years since 1948, when a Democrat was elected to the White House and Republicans held a majority in both the House and the Senate.

“Should Republicans win the House at a minimal, equities will likely react positively based upon the proposition that Washington gridlock is good for business because of the absence of major tax or policy changes,” Daniel Berkowitz (senior investment officer at Prudent Management Associates) stated in a report.

Investors shouldn’t be too concerned about the outcome of the election. Stocks tend to rise over the long-term, regardless of political outcome. The average annual return of the stock market since 1948, when there was full Democratic control, is still solid 15.1%. Stocks experienced an average gain of 15.9% when Republicans were in power.

The bottom line is that markets should care less about election results than they should about the elections themselves. In a report, Dan Clifton, head Washington research at Strategas Asset Management noted that the S&P 500 had declined by 19% on average in the midterm election years before votes were cast. However, the market tends to bottom by October.

The Bureau of Labor Statistics publishes its September jobs report at 8:30 AM. ET.

Next week: The third quarter earnings season starts. Expect reports from large banks like JPMorgan Chase

(JPM), Wells Fargo

(WFC), Citigroup

(C), Morgan Stanley

(MS), PNC

(PNC), US Bancorp, and consumer staples such as Pepsi

(PEP), Walgreen

Domino’s and (WBA)s

PPI and CPI, which are closely monitored measures of inflation in the US, will also be released.

Business

Tucker Carlson leaves Fox News after Dominion settlement for defamation

In this articleFOXAFollow stocks you likeCREATE A FREE ACCOUNTTucker Carlson, the right-wing prime-time host at Fox News, is leaving immediately. The cable network announced this Monday. This announcement came just days after Fox News parent company settled Dominion Voting Systems defamation suit for $787.5 Million. CNBC reported that the settlement did not require the company’s hosts to discuss the lawsuit or apologize for it. FOX News Media announced in a Monday statement that it and Tucker Carlson had agreed to part ways. “We thank him both for his work as a network host and, before that, as a contributing contributor. “There will not be a send-off for Carlson as his last show aired on Friday. Carlson had said he would return Monday when he signed off on Friday. Carlson’s “Tucker Carlson Tonight” has been one of Fox’s most popular programs for years. The company would not comment beyond the press release or whether Carlson had been taken off the air as a result of the Dominion defamation lawsuit. Fox News did make a statement in Carlson’s name. The Fox Corp. Class A share price fell about 3% on Sunday. Carlson’s emails and texts were also included in the evidence that was released before the settlement. Carlson was also among the hosts deposed by Dominion and included in the evidence. Other hosts deposed were Maria Bartiromo and Jeanine Pirro. Sean Hannity, Laura Ingraham and former host Lou Dobbs. “It’s unbelievably insulting to me.” Court documents show that Carlson stated in a text message sent in the weeks following the election: “Our viewers are good people, and they believe it.” Dominion pointed out the drop in Fox’s viewership after election night when the network called Arizona Biden. Carlson and his co-hosts expressed “the danger to them personally” behind the scenes. Carlson wrote to his producer in a message on November 5, “We worked hard to build what you have.” These f —-ers destroy our credibility. It enrages my.” Carlson was one of the witnesses who would have testified if the lawsuit went to trial. Abby Grossberg was also on that list of witnesses. She was a former Fox Producer who worked for Bartiromo, Carlson, and Bartiromo. Grossberg claimed she was forced to give misleading testimony in the Dominion lawsuit. Fox said Grossberg’s “unmeritorious claims” were “filled with false allegations about Fox and its employees”. “Grossberg’s attorneys stated in court documents that she was terminated by Fox as a result of retaliation. She has filed lawsuits against Fox in New York and Delaware, accusing the network of discrimination.Grossberg cheered Carlson’s departure in a statement Monday, saying, “This is a step towards accountability for the election lies and baseless conspiracy theories spread by Fox News, something I witnessed firsthand at the network, as well as for the abuse and harassment I endured while Head of Booking and Senior Producer for Tucker Carlson Tonight. I think this is fantastic for America! It’s a win for cable news viewers, not just Fox. “Carlson replaced Bill O’Reilly’s prime-time slot on Fox after O’Reilly quit the network in 2017 amid controversy. O’Reilly was accused of sexual harassment in the past by former Fox employees. He has denied these allegations. While the Dominion suit was unlikely to have an impact on Fox’s business it was not clear what effect it would have on its programming or hosts. Shortly after Smartmatic, a voting technology company, sued Fox in 2021 for defamation, Dobbs weekday show on Fox Business was cancelled. Dobbs was named as a defendant by Smartmatic in their ongoing lawsuit. The trial is not scheduled to begin until 2025. Fox had said that the show was already being cancelled before the lawsuit. Disclosure: NBCUniversal owns CNBC.

Business

Rupee Gains One Paisa to 82.16 US Dollar

The dollar index fell by 0.04 percent to 108.80. (File)Mumbai: The rupee gained 1 paisa to 82.16 against the US dollar in early trade on Friday, tracking a weak greenback against major currencies and positive sentiment in the domestic equities market.Forex traders said downward movement of crude oil prices also supported the local unit.

At the interbank foreign exchange, the domestic unit opened strong at 82.11 against the dollar and hit the lowest level of 82.17 before trading at 82.16, registering a rise of 1 paisa over its previous close.On Thursday, the rupee closed at 82.17 against the US currency.Participants were also cautious due to expectations of further interest rate hike by the US Federal Reserve and other central banks.

“Upside expectations were abandoned as soon USDINR turned under 82.2. As long as 81.97 is held, expect a bounce today. However, 82.4 seems far away. The 30-share BSE Sensex rose 109.93 or 0.18 percent to 59.742.28. The broader NSE Nifty gained 21.95 points, or 0.12 percent, to 17,646.40. According to exchange data, Foreign Institutional Investors (FIIs), who are net sellers on the capital market today sold shares worth Rs 1,169.32 million.

Business

Sensex and Nifty markets rise in early trade on buying Reliance Industries

The BSE Sensex climbed 134 to 59 766 in early trading. The 30-share BSE Sensex climbed 134 to 59,766.37 points in early trading. The NSE Nifty gained 36.4 points, to 17,660.85. HCL Technologies was the largest gainer among the Sensex companies, climbing nearly 2% in early deals.

HCL Technologies posted a 10.85 percent increase in consolidated profit to Rs 3,983 billion for the fourth quarter 2022-23. Kotak Mahindra Bank was among the other winners. The Q4 results have been mixed, with IT disappointing, and banking showing early signs of continued strength. This trend is likely not to change. There can be a slight pullback in IT after the sharp correction following the Infosys result.

“HCL Tech’s results have not disappointed. Some IT midcaps could beat market expectations.” The Sensex rose 64.55 points (0.11%) to settle at 59.632.35 on the Thursday. The Nifty rose by 5.70 points, or 0.03 percent, to close at 17,624.45. Brent crude, the global oil benchmark, fell 0.09 percent to USD 81.03 a barrel. According to exchange data, Foreign Portfolio Investors (FPIs), sold equities valued at Rs 1,169.32 crore.

Business

DeSantis and his allies intensify their Disney battle as more Republicans criticize him

Ron DeSantis answers a question at a press conference held Monday, April 17th, 2023, at the headquarters of Central Florida Tourism Oversight District (formerly Reedy Creek Improvement District), which a newly appointed board has renamed. Orlando Sentinel Ron DeSantis, his allies and the Republican presidential hopeful are intensifying their fight against Walt Disney Co. despite the criticism from his rivals for his long-running battle with the entertainment giant.

DeSantis has ripped Disney this week repeatedly over its recent moves to thwart his efforts to seize control of the company’s Orlando parks and property. DeSantis, who hasn’t announced his presidential plans, is considered the top Republican candidate for the 2024 GOP presidential nomination. He was promoting a new book that calls Disney a “Magic Kingdom of Woke Corporatism”. “Meanwhile his handpicked Disney World’s Special Tax District board of supervisors increased the pressure on Disney.

The officials took action on Wednesday to regain control of the property they claim Disney wrongfully took away before they took over. “People have suggested that we create a state-run park or try to build more amusement parks. Someone suggested another state prison. Who knows?” DeSantis said.It is the latest chapter of a grim story that began over a year ago, when Disney opposed the controversial Republican Florida law limiting discussion in classrooms about sexual orientation or gender identification. Disney’s stance on the legislation, dubbed by critics “Don’t Say Gay”, sparked an intense feud.

The Republican governor of Florida and the GOP-controlled legislature targeted a special tax district which has allowed Disney to govern itself for decades. DeSantis, who is willing to use his political influence to engage in cultural battles, has become a rising star within the GOP. His transition to the national scene, in apparent anticipation for a presidential announcement has sparked some criticism from his fellow Republicans. Trump, a former DeSantis supporter who is now regularly attacking the governor, wrote on Tuesday that the Governor is being “absolutely ruined by Disney”. “Republican ex-New Jersey Gov. Chris Christie questioned DeSantis this week about his political skills, referencing the Disney row.

Chris Christie said in an interview with Semafor that “that’s not the person I want to sit across from” President Xi Jinping or Russian President Vladimir Putin and trying to resolve what is happening in Ukraine if you cannot see around a blind corner [Disney CEO] Bob Iger has created for you.” Chris Sununu, who spoke on CNN Monday, said that the battle “confuses the entire Republican message,” Politico reports. These Republicans are either running or considered potential candidates for president. They could be DeSantis’ rivals. DeSantis’ press secretary Bryan Griffin responded to the recent GOP criticism by referring to a statement released on Tuesday accusing Disney of passing a “legally defective, 11th-hour agreement” to preserve its special privileges.

Griffin’s statement was a response Christie’s criticism. It said: “That’s an effort to subvert will of the people in Florida, and Governor DeSantis won’t stand for that.” The Reedy Creek Improvement District is a local government entity established in 1967. It gave Disney regulatory control of public services and functions in a 25,000-acre region encompassing its Florida resorts and parks. Disney paid Reedy Creek millions of dollars in taxes to fund these services. This was on top of the local tax obligations.

Florida Republicans passed legislation weeks after Disney denounced this classroom bill. DeSantis then signed the bill. The move raised concerns that Florida taxpayers living in the two counties around Reedy Creek would be hit with a large tax bill if Florida removed Disney’s self governing status. In a February special session, the state legislature scrapped the plan and replaced it with a proposal that allowed DeSantis the power to appoint the five board members.

But last month, the newly chosen board of the governing board — now called the Central Florida Tourism Oversight District – said that their predecessors had stripped many of their rights on their way out. “The bottom line is Disney committed a caper that would have made Scrooge McDuck proud to try and evade Florida laws,” said David Thompson, identified as trial counsel for the board. David Thompson, identified by the board as trial counsel, said that its efforts were illegal and would not stand.

Business

Media outlets and top pro leagues join forces to combat problematic sports betting ads

Kansas City Star The coalition is led by Jonathan Nabavi, NFL vice president of government affairs and public policy. It aims to regulate the sports-betting advertisements that flood television, internet, and print media. The coalition said that as sports betting becomes legal across the country, it is important to set guidelines for how the industry should be promoted to consumers. “Each coalition member feels a sense of responsibility to ensure that sports betting advertising is not just targeted at the right audience, but is also carefully crafted and delivered.

“The coalition describes themselves as voluntary and stated that it will work to ensure that sports-betting advertisements only target adults of legal betting ages, do not promote excessive or irresponsible gaming habits, remain in good taste and aren’t misleading. David Highhill is the general manager of sports wagering for the NFL. He said that legalized sports betting gives fans a new way to interact with their favorite sports.

“But we must not only support problem-gambling prevention, but also be mindful of the way sports betting is advertised and presented to consumers. This coalition will greatly help in this cause. The National Council on Problem Gambling commended the coalition, and promised to collaborate with it in order to “better minimize problem gambling-related harm.”