Commodities

Commodities, including iron ore and copper, take a hit on potential collapse of China’s Evergrande

Prices for some commodities, including iron ore and copper, take a hit on Monday, as the potential collapse of one of China’s biggest property developers fueled worries about the economy, and potential declines in construction and demand for raw materials. 3:58 p.m. Sept. 20, 2021

Oil prices decline as worries over China’s Evergrande sink the stock market and lift the U.S. dollar

Oil futures declined Monday as worries over the potential collapse of China property giant Evergrande send ripples through global financial markets, fueling risk-off sentiment and strength in the U.S. dollar. 3:15 p.m. Sept. 20, 2021

Energy sector suffers broad selloff, as Evergrande fears even weigh on crude oil prices

The energy sector was suffering a broad selloff Monday, and was the hardest hit of the S&P 500's 11 sectors, as worries that China-baed property developer China Evergrande Group could default sent shivers through financial markets, including the crude oil market. The SPDR Energy Select Sector ETF dropped 5.4% in afternoon trading with all 22 equity components losing ground, putting the ETF on track for the biggest one-day selloff in 10 months. Among the ETF's most-active components, shares of Exxon Mobil Corp. slid 3.7%, Occidental Petroleum Corp. shed 6.7%, Marathon Oil Corp. slumped 5.9%, Chevron Corp. was down 3.3% and Kinder Morgan Inc. gave up 2.8%. Meanwhile, crude oil futures fell 2.2% and the S&P 500 sank 2.6%. 2:55 p.m. Sept. 20, 2021

Commodities Headlines

Oil futures settle lower, pressured as concerns over Evergrande feed risk-off sentiment

Oil futures settled lower on Monday, as concerns over a possible collapse of Chinese property developer Evergrande fed risk-off sentiment, pulling U.S. and global stock markets sharply lower. "Evergrande's woes are threatening the outlook for the world's second largest economy and making some investors question China's growth outlook and whether it is safe to invest there," said Edward Moya, senior market analyst at Oanda. West Texas Intermediate crude for October delivery fell $1.68, or 2.3%, to settle at $70.29 a barrel on the New York Mercantile Exchange.

2:54 p.m. Sept. 20, 2021
Gold futures get a boost as Evergrande woes lead to risk-off sentiment

Gold futures climbed on Monday, ending higher for the first time in four sessions. The precious metal found support, in part, due to worries about the potential collapse of Chinese property developer Evergrande and amid "good physical demand in Asia," said Chintan Karnani, director of research at Insignia Consultants, adding that he expects a decline in gold short positions as global stock markets fall. December gold rose $12.40, or 0.7%, to settle at $1,763.80 an ounce. That followed three consecutive sessions of declines, FactSet data show.

1:55 p.m. Sept. 20, 2021
Nucor weighing Midwest sites for new $2.7 billion steel plant

Nucor Corp. said Monday it plans to spend about $2.7 billion to build a new steel mill that will produce 3 million tons of steel. Nucor said it'll choose between potential locations in Ohio, Pennsylvania and West Virginia to build the plant, which will serve customers in the Midwest and Northeast markets and have a "significantly lower" carbon footprint than nearby competitors. Nucor president and CEO Leon Topalian said the mill will "allow us to competitively meet the growing need that many of our customers, particularly in the automotive market, have for high quality steel with a lower carbon footprint." The company did not say how it would staff the new plant or how many workers would be employed there. Shares of Nucor are up 97.2% so far this year, compared to a rise of about 18% for the S&P 500 .

7:18 a.m. Sept. 20, 2021
Oil prices decline, but post a 4th straight weekly gain

Oil prices decline on Friday as crude production in the Gulf of Mexico makes a slow comeback from Hurricane Ida, but both the U.S. and global benchmarks score solid weekly gains for a fourth week in a row.

3:12 p.m. Sept. 17, 2021
Oil futures settle lower, but gain over 3% for the week

Oil futures fell on Friday, with U.S. prices easing back from their highest level since late July. The day's selloff is "mostly attributable to profit taking following the run up earlier in the week," said Marshall Steeves, energy markets analyst at IHS Markit. The crude-oil market surged after the weekly U.S. inventory report Wednesday showed another crude stock draw, as less than 30% of U.S. offshore production in the Gulf of Mexico remains sidelined due to the impacts of Tropical Storm Nicholas and Hurricane Ida, he said. "However, the outlook for global demand growth is diminishing due to the spread of the delta variant." West Texas Intermediate crude for October delivery fell 64 cents, or 0.9%, to settle at $71.97 a barrel on the New York Mercantile Exchange. Prices settled at $72.61 on Thursday, unchanged from Wednesday when they ended at the highest since July 30. For the week, prices still gained 3.2%, FactSet data show.

2:42 p.m. Sept. 17, 2021
Gold futures mark lowest settlement in over 5 weeks

Gold futures declined on Friday, posting a loss for the week and settling at their lowest in more than five weeks. Positive economic numbers coming in each week, the most recent being U.S. retail sales, have contributed to gold's loss, said Adam Koos, president at Libertas Wealth Management Group. "Any additional, positive, hawkish numbers like these are going to solidify any probability of a 'sooner-than-later' [Federal Reserve] tapering schedule, which wouldn't likely bode well for gold, or bonds, for that matter." December gold fell $5.30, or 0.3%, to settle at $1,751.40 an ounce - down 2.3% for the week. That was lowest finish for a most-active contract since Aug. 10, FactSet data show.

1:45 p.m. Sept. 17, 2021
Baker Hughes data show a second weekly climb in U.S. oil-drilling rigs

Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil climbed by 10 to 411 this week. That followed an increase of seven oil rigs last week as a recovery in Gulf of Mexico energy operations continues in the wake of Hurricane Ida. The total active U.S. rig count, which includes those drilling for natural gas, also climbed by nine to stand at 512, according to Baker Hughes. October West Texas Intermediate crude continued to trade lower, with the contract down 80 cents, or 1.1%, to $71.81 a barrel on the New York Mercantile Exchange.

1:10 p.m. Sept. 17, 2021
Diamondback Energy's stock surges after analyst touts new $2 billion buyback plan

Shares of Diamondback Energy Inc. charged up 4.3% in premarket trading Friday, after the oil and gas company announced a new $2 billion stock repurchase program. The company said late Thursday that the new buyback program was part of the acceleration of its plan to return 50% of free cash flow to shareholders in the fourth quarter, given strong operational performance and improved capital efficiency, as a time of that the macro backdrop is supportive. Cowen analyst David Deckelbaum said the move is "notable," given the company has beat production and capital expenditure expectations for both the first and second quarters. He also said that the company introduced the concept of future use of variable dividends as a return mechanism, once the expected return on share repurchases is below the company's cost of capital. Deckelbaum reiterated the outperform rating on the stock and the $108 price target, which implies a 35% gain off Thursday's closing price of $80.07. The stock has lost 7.9% over the past three months through Thursday, while the SPDR Energy Select Sector ETF has declined 8.0% and the S&P 500 has gained 6.0%.

9:00 a.m. Sept. 17, 2021

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