Investors Focus on Oil as Prices Rise Again
U.S. stock futures are lower ahead of the Wall Street open as traders assessed the latest developments out of the Middle East, hoping for progress toward ending the war in Iran.
The moves come after equity gains on Wednesday but oil has reversed higher this morning which is putting pressure on equities. Iran’s foreign minister reportedly told state media on Wednesday that top authorities in the Middle Eastern nation are reviewing an American proposal to end the war, but Tehran has no intention of having talks with the U.S. Iran state media reported that the nation would reject a U.S. ceasefire offer, instead countering with its five-point list that would give Tehran control over the Strait of Hormuz.
Gulf countries issued a joint statement Thursday condemning Iran’s “criminal” strikes on their energy infrastructure. They added that they are ready to defend themselves going forward. Investor focus will remain on headlines out of the Middle East, oil prices and rising uncertainty and volatility.
Snapshot (as of 7 AM ET)
- Oil (/CL) – Oil prices are up about 5% near $94.50 a barrel after Iran signaled it had no intention of holding direct talks with the United States, even as a U.S. proposal to end the war is under review by senior officials in Tehran, according to remarks from the Islamic Republic’s foreign minister. Iranian Foreign Minister Abbas Araghchi told state media on Wednesday that exchanges between the two countries through mediators do not mean “negotiations with the U.S.,” Reuters reported.
- Gold (/GC) – Gold prices are down almost 3% near $4,420 after two consecutive sessions of gains, as investors awaited clearer signs of progress in Middle East de-escalation efforts, the outcome of which could shape the global financial and monetary policy landscape.
- Bitcoin (/BTC) – The Crypto Future is down 2% near 69,400 in premarket trading.
- VIX – The CBOE Volatility Index was down 6% on Wednesday and settled at 25.33 as stocks rose. The VIX is up about 9% near 27.5 this morning as stocks are under pressure.
- U.S. Dollar (/DX) – The dollar is slightly higher to 99.7.
Biggest Premarket Movers (as of 7 AM ET - Mark % Change)
- Occidental Petroleum (OXY): +1.05%
- ConocoPhillips (COP): +0.94%
- Chevron (CVX): +0.93%
- APA Corp. (APA): +0.92%
- CF Industries (CF): +0.78%
- Applovin (APP): -6.81%
- SanDisk (SNDK): -3.52%
- Super Micro Computer (SMCI): -3.12%
- Newmont (NEM): -2.97%
- Micron (MU): -2.64%
Economic Data
- 8:30 AM ET: Jobless Claims
- 10:30 AM ET: Natural Gas Inventories
- 11:00 AM ET: Kansas City Fed Mfg. Index
- 1:00 PM ET: 7-Year Note Auction
- 4:00 PM ET: Fed’s Cook Speaks
Notable Earnings
- Premarket: DOO, CMC, DBI, LOVE, PONY
- Postmarket: None
- Premarket Tomorrow: CCL
- Postmarket Tomorrow: None
Upgrades/Downgrades
- Truist upgrades Airbnb (ABNB) to Hold from Sell
- Needham upgrades Arm (ARM) to Buy from Hold
- Morgan Stanley upgrades STMicroelectronics (STM) to Overweight from Equal Weight
- Bernstein downgrades Qualcomm (QCOM) to Market Perform from Outperform
- William Blair downgrades Adobe (ADBE) to Market Perform from Outperform
- Wells Fargo downgrades Hub Group (HUBG) to Equal Weight from Overweight
