Energy stocks fall, airline stocks rise as oil prices fall

5 minutes ago

Shares of companies most affected by oil prices have been among the biggest movers this year S&P 500 On Monday, as crude oil futures sank after a weekend retaliatory strike against Iran by Israel failed to hit Iran’s oil facilities.

Crude futures fell nearly 6 percent in late morning trade as Iranian output was not disrupted. Iran accounts for about 4% of the world’s oil trade, according to US Energy Information Administration (EIA). Israel’s targeted attack also eased concerns about a further escalation of fighting in the Middle East, which would further impact supply.

Driller stocks such as APA (WATER), Diamondback Energy (FANG), and Devon Energy (DVN) fell, along with oilfield services firms Halliburton (HAL) and SLB (SLB).

SPDR S&P Oil and Gas Exploration and Production exchange traded fund (ETF) fell to its lowest level this month.

On the other hand, shares took off for Carnival Corp. (CCI), Delta Air Lines (DAL), and other cruise lines and airlines, which may benefit from lower fuel costs.

–Bill McCall

Onsemi Beats Earnings Expectations, Gives Weak Guidance

1 hour 26 minutes ago

ON Semiconductor (ON) beat estimates on third-quarter profit and revenue on Monday, but sales continued to decline and the chipmaker offered weak guidance.

The company, also known as Onsemi, reported the adjustment in the third quarter earnings per share (EPS) of $0.99, with revenue down nearly 20% year over year to $1.76 billion. Both were slightly above the consensus forecasts of analysts polled by Visible Alpha.

Onsemi sees adjusted EPS for the current quarter in the range of $0.92 to $1.04 and revenue of $1.71 billion to $1.81 billion. Analysts polled by Visible Alpha were looking for $1.00 billion and $1.78 billion, respectively.

Shares of ON Semiconductor rose 2.5% in recent trading, although they are down nearly 13% in 2024.

–Bill McCoil

Boeing is launching stock sales that could raise about $19 billion

1 hour 59 min ago

Boeing (nay) on Monday launched the sale of about $19 billion in stock and warehouse stock as the troubled plane maker tries to shore up its finances.

Boeing said it launched the sale of 90 million shares of common stock. That would amount to $13.95 billion if the shares are valued at Friday’s closing price of $155.01 each.

Boeing is also offering $5 billion in warehouse stock for sale, which it said it plans to list on New York Stock Exchange (NYSE) under the symbol “BA.PRA”.

The aircraft manufacturer, which is struggling with a paralyzing strike by its union machinists, will also give the underwriters of the deal a 30-day option to buy an additional 13.5 million shares of common stock and $750 million of depositary shares.

Boeing said the net proceeds will go toward “repayment of debt, additions to working capital, capital expenditures and financing and investments” in its subsidiaries.

Boeing shares fell nearly 2 percent in early trading on Monday.

–Nisha Gopalan

Futures indicate a higher opening for major indices

3 hours 23 minutes ago

Dow Jones Industrial Average futures rose 0.3%.

S&P 500 futures rose 0.4%.

Nasdaq 100 futures rose 0.6%.