Wall St. opens strong in light of high oil prices lifting energy stocks
Monday saw the Wall Street’s main indexes open higher with high oil prices lifting energy stocks. Meanwhile, investors are set to receive key inflation readings within the week.
Chevron Corp, Occidental Petroleum Corp, and Schlumberger, each saw a rise between 0.7% and 1.1% in premarket trading as oil prices solidified into more than $1 per barrel.
There is also an improvement in Risk sentment with consideration to cryptocurrencies that had started to fight back after a concerning weekend that had been compelled greater signs of a building Chinese crackdown on the budding sector.
Within the previous weeks, the Equity markets had experienced a rather troubling status as investors scrambled to balance forthcoming data and actual worries that supply side limitations could cause a prolonged period of higher prices and compel the Federal Reserve to reduce its crisis era support. Chief Market Strategist at National Securites in New York, Mr. Art Hogan had this to say about the matter:
“We are looking at a good positive start to the week as equity valuations are back to a reasonable level and are easily justified which is helping remove a good chunk of speculative trade,”
“We went through a period of time when we were out of tech and into value stocks, while right now we see a lot of those trades come back into tech.”
S&P 500, after its fall of 4.3% from its record high on May 7th is now only 2% off that level caused by investors picking up tech stocks beaten down by fears of rate hike.
At 8:31 a.m. ET, Dow e-minis had climbed to 122 points, or 0.36%, S&P 500 e-minis increased 22.25 points, or 0.54%, and Nasdaq 100 e-minis climbed by 106.75 points, or 0.8%
A merger had been reached between Cabot Oil & Gas Corp and Cimarex Energy Co so as to form a U.S. oil and gas producer that has an enterprise value reaching $17 billion, the most recent deal in a sector rebounding from one of the most debilitating downturns in its market history.
Cabot and Cimarex shares fell 1.2% and 1.7% respectively.
Martin Marietta Materials Inc. well-known construction materials supplier said in a statement that it would buy HeidelbergCement AG’s assets in California and Arizona for $2.3 billion. Since the statement, Martin Marietta’s shares rose 1.5%.