Oil jumps as fear of Middle East regional conflict grows
31 minutes ago
Oil prices jumped Wednesday morning as fighting in the Red Sea and a deadly attack on the tomb of an Iranian military commander stoked fears of a broader conflict engulfing the oil-rich region.
More than 100 people were reported killed on Wednesday after two bombs exploded near the grave of Qassem Soleimani in the city of Kerman, marking the fourth anniversary of his assassination by a US drone strike. The attack comes a day after Hamas accused Israel of ordering an airstrike that killed a senior official in Lebanon.
This week’s violence has stoked fears that fighting between Israel and Hamas could spread to neighboring countries like Lebanon and attract Iran, which supports Hamas and its allies like Hezbollah. In Yemen, Iran-backed Houthi rebels have for weeks targeted commercial ships transiting the Red Sea, leading many tankers and shipping companies to reroute traffic around Africa. In response, the United States and Iran both sent warships to the waterway.
West Texas Intermediate futures jumped more than 3% on Wednesday, from less than $70 a barrel to nearly $73 by midday. Brent crude, the European benchmark, rose from $75 to around $78 per barrel.
Ford falls after recalling more than 112,000 F-150 pickup trucks for shifting risk
1 hour 21 minutes ago
Shares of Ford (F) fell nearly 4% Wednesday morning after the automaker recalled 112,965 F-150 pickup trucks due to deployment risks.
The automaker said the recall, which potentially affects 112,965 pickup trucks, involves a rear axle hub bolt that “could fatigue and break,” which could “result in damage to the axle hub splines.” .
The company said that a “cure is currently in development” and that “owners will be advised to take their vehicle to a dealership for an interim repair if they experience any symptoms related to broken axle bolts rear, like a clicking or rattling noise.
-Naomi Buchanan
Walt Disney strikes deal with ValueAct to try to fend off Peltz
1 hour 55 minutes ago
Shares of Walt Disney Co. (DIS) rose Wednesday morning after the company announced it was teaming up with hedge fund ValueAct to fend off a proxy fight with activist investor Nelson Peltz.
The companies said in a joint statement Wednesday that they had reached an agreement allowing Disney to share otherwise confidential information with ValueAct and consult with the investment firm on strategic decisions. As part of the deal, ValueAct agreed to support Disney’s slate of candidates for its board of directors.
“ValueAct Capital has a history of collaboration and cooperation with the companies in which it invests, and its co-CEO Mason Morfit has been very constructive in the conversations we have had over the past year. We appreciate their contributions as long-term shareholders,” Disney CEO Bob Iger said in a statement.
Disney is facing a proxy fight with activist investor Nelson Peltz, who, through his company Trian Fund Management, has named himself and former Disney CFO James Result as the board of directors of the company in December. This is Peltz’s second proxy battle with Disney in two years. He attempted to join the board in 2022 before abandoning his bid after the company announced sweeping cost-cutting measures.
Stocks Make Biggest Moves Premarket
3 hours 1 minute ago
Earnings :
- Pure Storage Inc. (PSTG): Shares of the storage company rose about 6% after S&P Global announced it would join the S&P 400 MidCap Index effective Jan. 5, replacing Patterson Companies Inc. (PDCO).
- Novartis AG (NVS): Shares of the pharmaceutical company rose 2% a day after announcing a gene therapy deal with biotech Voyager Therapeutics that will see it pay $100 million up front, plus $1.1 billion additional dollars if certain regulatory and commercial milestones are met.
- Verizon Communications Inc. (VZ): Shares rose nearly 2% after KeyBanc upgraded the telecommunications provider to “overweight,” citing its relative strength versus AT&T, one of its only real competitors.
Losses:
- Coinbase Global (COIN): Shares of the cryptocurrency exchange fell more than 6%, adding to yesterday’s losses, as the price of Bitcoin fell ahead of the SEC’s decision, expected this week , on a spot ETF.
- Royal Caribbean Cruises Ltd. (RCL): Cruise operator shares fell nearly 2% as investors continued to sell off 2023’s biggest winners; Carnival was the third best-performing stock in the S&P 500 last year.
- Nvidia (NVDA): Shares of the chipmaker fell about 1%, extending yesterday’s losses alongside fellow chip stocks Arm Plc (ARM), down 2% premarket, and Advanced Micro Devices (AMD), down more than 1%.
Stock Futures Lower Ahead of Jobs Data, Fed Minutes
3 hours 51 minutes ago
Futures contracts tied to the Dow Jones Industrial Average were down 0.3% premarket Wednesday.
S&P 500 futures fell 0.4%.
Nasdaq 100 futures were down 0.7%.
