Market Overview

Mid-Morning Market Update: Markets Open Lower; Oil Prices Jumps After Drone Strike Cripples Saudi Oil Supply

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Following the market opening Monday, the Dow traded down 0.4% to 27111.13 while the NASDAQ fell 0.22% to 8158.96. The S&P also fell, dropping 0.28% to 2,998.97.

Leading and Lagging Sectors

Energy shares climbed 2.5% on Monday. Meanwhile, top gainers in the sector included SemGroup Corporation (NYSE: SEMG), up 64%, and Centennial Resource Development, Inc (NASDAQ: CDEV), up 31%.

In trading on Monday, materials shares fell 1.2%.

Top Headline

Saudi Arabia suffered a drone strike at its Abqaiq crude oil processing facility over the weekend, which happens to be the "most critical" piece of infrastructure in the country. The price of Brent crude and WTI oil traded higher by around 10% Monday morning.

The Abqaiq facility handles half of all Saudi Arabia's oil production and helps supply the global oil market. Around 5 million barrels per day will be impacted from the drone attack which represents around 5% of the total global supply.

Saudi Arabia's government continues to assess the damage and any timeline to a full return are not clear. The Wall Street Journal reported Saudi Arabia could restore one-third of the disrupted production within hours.

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Equities Trading UP

Alder BioPharmaceuticals, Inc. (NASDAQ: ALDR) shares shot up 83% to $18.41 after Danish company Lundbeck announced plans to acquire Alder BioPharmaceuticals in a deal valued at around $2 billion.

Shares of SemGroup Corporation (NYSE: SEMG) got a boost, shooting up 63% to $16.80 following news Energy Transfer will buy the company in a $5 billion deal.

Yuma Energy, Inc. (NYSE: YUMA) shares were also up, gaining 54% to $5.11.

Equities Trading DOWN

Coda Octopus Group, Inc. (NASDAQ: CODA) shares tumbled 14% to $9.29 after the company reported downbeat Q3 results.

Shares of New Relic, Inc. (NYSE: NEWR) were down 11% to $51.76 after the company lowered its 2020 sales guidance and announced changes in management.

Endurance International Group Holdings, Inc. (NASDAQ: EIGI) was down, falling 10% to $5.12 after Constant Contact, an Endurance International, announced plans to expand its email marketing platform.

Commodities

In commodity news, oil traded up 10.2% to $60.43, while gold traded up 0.8% to $1,510.70.

Silver traded up 1.9% Monday to $17.90, while copper fell 1% to $2.6715.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.4%, the Spanish Ibex Index fell 0.7%, while Italy’s FTSE MIB Index dropped 0.8%. Meanwhile, the German DAX fell 0.5% and the French CAC 40 declined 0.6% while UK shares fell 0.2%.

Economics

The NY Empire State manufacturing index dropped 2.8 points to a reading of 2 in September. However, economists were projecting a reading of 4.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

Posted-In: Mid-Morning Market UpdateNews Eurozone Commodities Global Intraday Update Markets

 

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