SPDR Select Sector Fund - Energy Select Sector (ARCA: XLE)

SPDR Select Sector Fund - Energy Select Sector (ARCA:XLE), Quote.Headers.trade-ideas

SPDR Select Sector Fund - Energy Select Sector

Energy

Technology

Healthcare

Industrials

Financial Services

Consumer Cyclical

Consumer Defensive

Communication Services

Real Estate

Other

Utilities

Basic Materials

In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: oil, gas and consumable fuels; and energy equipment and services. The fund is non-diversified.

Exxonmobil Corp.

Chevron Corp.

Eog Resources Inc

Schlumberger Nv

Phillips 66

Marathon Petroleum Corporation

Developed Markets Compugroup Medical Ag

Valero Energy Corp

Williams Cos. Inc.

Oneok Inc.

The Energy Select Sector SPDR Fund

Jerome Powell Wall Street

Analyst Color

Equities

Large Cap

Sector ETFs

Broad U.S. Equity ETFs

Econ #s

Markets

Tech

ETFs

$BTC

PowerShares DB US Dollar Index Bullish Fund

Wall Street reacted with unease to Federal Reserve Chair Jerome Powell‘s remarks following a landmark decision to cut the federal funds rate by 50 basis points, bringing it down to a target range of 4.75% to 5%

Powell&#39;s Hawkish Tone Tempers Market Excitement After Historic 50-Basis-Point Interest Rate Cut, Economist Sees &#39;Welcome News For Credit-Sensitive Sectors&#39;

fed ai5

Macro Economic Events

News

Small Cap

Economics

Federal Reserve

Movers

$ETH

SPDR Dow Jones Industrial Average ETF Trust

iShares Trust Barclays 20+ Year Treasury Bond Fund

Editor’s note: This story has been updated with additional information. 

S&amp;P 500, Gold Strike All-Time Highs, Small Caps Rally After Fed Slashes Interest Rates For First Time In 4 Years (UPDATED)

Wall-Street-ai5

TSLA

Wall Street is jittery hours before the highly anticipated Federal Open Market Committee (FOMC) meeting, with all major indices posting modest losses by midday in New York.

Stocks Edge Lower As Fed Rate Decision Looms, Treasury Yields Rise As Odds Improve For Smaller Cut: What&#39;s Driving Markets Wednesday?

XXL Energy Corp

INVESCO ENERGY S&P US SECTOR UCI ETF

Wall Street reacted with unease to Federal Reserve Chair Jerome Powell&#8216;s remarks following a landmark decision to cut the federal funds rate by 50 basis points, bringing it down to a target range <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40927293/powell-defends-0-5-interest-rate-drop-as-right-thing-for-the-economy-doubles-down">of 4.75% to 5%. </a>
The Federal Reserve&#8217;s highly anticipated dot plot, which outlines each policymaker&#8217;s rate path preference, indicated that policymakers <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead">anticipate further easing ahead</a>. The dot plot signaled that the Fed is likely to cut rates by a quarter percentage point at each of the next two decisions. Looking further ahead, it suggests an additional rate reduction of at least another percentage point in 2025.
Despite the initial market euphoria following the 50-basis-point rate cut, Powell&#8217;s cautious remarks on the future rate path have injected uncertainty into the markets.
See Also: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/09/40928301/interest-rates-in-free-fall-what-it-means-for-mortgages-credit-cards-and-your-wallet-a">Interest Rates In Free-Fall &#8211; What It Means For Mortgages, Credit Cards And Your Wallet As The Federal Reserve Springs Into Action For First Time In 4 Years</a>
<h3 class="wp-block-heading">Market Response To Rate Cut, Powell&#8217;s Remarks</h3>
Initially, the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), surged to record highs. Gold prices, represented by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), also hit all-time highs as the U.S. dollar weakened.
Interest-rate sensitive stocks were the largest gainers between 2 p.m. and 2:35 p.m. ET, with small caps outperforming large-cap counterparts.
Yet, Powell&#8217;s cautionary comments during the press conference caused a reversal in market sentiment.
Here&#8217;s how major asset classes closed on the Fed&#8217;s decision day:
<ul>
<li>The U.S. dollar, which many believed would plummet in a 50-basis-point cut scenario, instead recouped its losses and rallied to weekly highs. The Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) closed 0.1% higher.</li>
<li>U.S. large-cap indices all ended the day in the red, paring back gains made immediately after the rate decision. The S&amp;P 500 finished 0.3% lower, while the Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), declined by 0.4%.</li>
<li>Small caps managed to close unchanged for the day, but they still gave back all their post-rate-cut gains.</li>
<li>Sector-wise, the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) was the only sector to close in positive territory, up 0.2%. </li>
<li>The worst performer was the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), which fell 1%.</li>
<li>Gold dropped 0.4% to $2,555 per ounce, hitting levels last seen on Thursday of the previous week.</li>
<li>Silver and oil also saw robust declines, closing 2.1% and 1.2% lower, respectively.</li>
<li>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell 1.1% to $59,717.</li>
</ul>
<h3 class="wp-block-heading">Powell&#8217;s Caution Stirs Investor Uncertainty</h3>
While defending the 50-basis-point rate cut, Powell tempered market enthusiasm, emphasizing that such a cut should not be seen as a new norm. His key statements on Wednesday included:
<ul>
<li>&#8220;No one should look at today and think this is the new pace.&#8221;</li>
<li>&#8220;We can go quicker or slower, or pause, on rate cuts if it is appropriate.&#8221;</li>
<li>&#8220;There is nothing in our projections that suggest we are in a rush.&#8221;</li>
<li>&#8220;If the economy remains solid and inflation persists, we can dial back policy restraint more slowly.&#8221;</li>
</ul>
These comments signaled a more cautious approach to future rate cuts, disappointing investors who had hoped for a more aggressive easing cycle.
<h3 class="wp-block-heading">Economist Insights</h3>
<ul>
<li>Jeffrey Roach, LPL Financial: &#8220;We learned from today's Summary of Economic Projections (SEP) that the Fed is interested in getting to a neutral fed funds rate as quickly as possible.&#8221;</li>
<li>John Lynch, Comerica Wealth Management: &#8220;The Fed was more aggressive than I expected, since 50 basis point cuts are historically associated with crises. I don't consider 2% GDP, 4.2% unemployment rate, and 15% profit growth forecasts for 2025 as a crisis.&#8221;</li>
<li>Bill Adams, Comerica Bank: &#8220;With the Fed pivoting, interest rates will be substantially lower over the next six to twelve months. That is very welcome news for credit-sensitive sectors of the economy like housing, manufacturing, and retailers of cars and other big-ticket consumer products.&#8221;</li>
<li>Chris Zaccarelli, Independent Advisor Alliance: &#8220;Lowering interest rates now should allow the market to hit all-time highs again by the end of this year, and more gains for next year.&#8221;</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/09/40923390/20-s-p-500-stocks-that-move-the-most-when-the-fed-starts-cutting-interest-rates">20 S&amp;P 500 Stocks That Move The Most When The Fed Starts Cutting Interest Rates</a></li>
</ul>
Photo courtesy of the Federal Reserve.

Powell's Hawkish Tone Tempers Market Excitement After Historic 50-Basis-Point Interest Rate Cut, Economist Sees 'Welcome News For Credit-Sensitive Sectors'

Editor&#8217;s note: This story has been updated with additional information. 
Markets are bouncing Wednesday afternoon following the Federal Reserve&#8217;s decision to cut rates by 0.5%, marking the beginning of the central bank&#8217;s <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40918078/is-the-fed-playing-with-fire-we-see-greater-risk-of-an-overheating-economy-as-they-">highly anticipated cutting cycle</a>.
What To Know: Wednesday&#8217;s&nbsp;0.5% rate cut brings the&nbsp;target fed funds rate&nbsp;to a new range&nbsp;between 4.75% and 5%, down from a 23-year high of 5.25% to 5.5%. It&#8217;s also the first rate cut since March 2020.
The fed funds rate has been sitting at a range between&nbsp;5.25% and 5.5%&nbsp;since the central bank last hiked in July 2023.
The SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the <a href="https://www.benzinga.com/topic/s-p-500">S&amp;P 500</a> index, was up 0.44% at all-time highs at last check, led higher by a variety of names like Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), The Trade Desk Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>) Toyota Motor Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Marriott International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>).
The materials sector, as tracked by the Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>), was showing the most strength at the time of writing, climbing approximately 0.6% following the Fed decision. The energy sector, tracked by the Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), was the weakest, down 0.3% following the rate cut. Energy stocks had performed well on Wednesday ahead of the Fed decision, which may explain some of the relative weakness in afternoon trading.
Here&#8217;s a look at how various ETFs tracking the price-weighted Dow Jones Industrial Average, tech stocks, small caps, treasuries and gold are faring following the Fed&#8217;s latest move.
<ul>
<li>SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>): up 0.38% at $418.87.</li>
</ul>
<ul>
<li>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>): up 0.59% at $476.25.</li>
</ul>
<ul>
<li>IShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>): up 2.31% at $224.36. Small caps outperformed broader markets ahead of the rate cut and continued to outperform in afternoon trading.</li>
</ul>
<ul>
<li>IShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>): down 0.36% at $100.48.</li>
</ul>
<ul>
<li>SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>): up 0.66% at $239.02. Gold hit all-time highs following the Fed&#8217;s rate decision.</li>
</ul>
It&#8217;s also worth noting that crypto markets are volatile following the Fed decision on rates. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was down 0.86% over a 24-hour period, trading at $60,480, but well off its lows for the day, and Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) was down 1.79% at $2,322. 
Check This Out: <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead">Federal Reserve Delivers Bold 0.5% Rate Cut, Signals Further Easing Ahead</a>
The increased volatility is likely a result of <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40883274/senator-warren-urges-fed-to-slash-rates-by-0-75-veteran-investor-warns-even-0-5-cut">uncertainty heading into the meeting</a>. According to CME&#8217;s <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">FedWatch tool</a>, the market was projecting a 61% chance of a larger 0.5% rate cut heading into the meeting versus a 39% chance of a smaller 0.25% cut.
As reported by Benzinga, the updated quarterly Dot Plot, which helps signal the Fed&#8217;s future policy intentions, indicates a more aggressive path for rate cuts than previously projected following Wednesday&#8217;s 0.5% cut. The median projection now calls for a total of 1% in rate cuts in 2024.
SPY Price Action: At the time of publication, the <a href="https://www.benzinga.com/quote/SPY">SPDR S&amp;P 500</a> was up 0.44%, trading at $565.62, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40908202/10-etfs-investors-secretly-bought-before-the-feds-make-or-break-interest-rate-cal">10 ETFs Investors Secretly Bought Before The Fed&#8217;s Make-Or-Break Interest Rate Call</a></li>
</ul>
Watch Fed Chair Jerome Powell&#8216;s press conference here: 
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: Jerome Powell Speaks, FOMC Press Conference &#x7C; September 18th, 2024" width="500" height="281" src="https://www.youtube.com/embed/qVdXli47cWk?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
This illustration was generated using artificial intelligence via Midjourney.

S&P 500, Gold Strike All-Time Highs, Small Caps Rally After Fed Slashes Interest Rates For First Time In 4 Years (UPDATED)

Wall Street is jittery hours before the highly anticipated Federal Open Market Committee (FOMC) meeting, with all major indices posting modest losses by midday in New York. While a Federal Reserve rate cut is considered a done deal, the market remains divided on the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40921827/fed-decision-is-here-5-things-investors-need-to-know-ahead-of-wednesdays-pivotal-in">magnitude of the cut. </a>
Current implied probabilities show a 60% chance of a 50-basis-point reduction, while a smaller 25-basis-point cut has lately gained traction, rising to 40% odds, as per CME FedWatch.
The growing expectation of a smaller cut has pushed Treasury yields higher across the curve, reflecting a shift in market sentiment.
Amid this uncertainty, the CBOE Volatility Index (VIX), often seen as the market&#8217;s fear gauge, spiked 8%, signaling heightened investor anxiety.
The U.S. dollar steadied, recovering from overnight losses. Commodities retreated, with oil prices down 0.9%, despite a fresh escalation of tensions in the Middle East, and silver slipping 1%. Gold remained flat.
In the cryptocurrency market, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) declined 1.5%, dipping below the $60,000 mark after a 3.6% rally on Tuesday.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day chg %</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,622.28</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,482.17</td>
<td>-0.3%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,369.89</td>
<td>-0.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,201.42</td>
<td>-0.5%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:05 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091824&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.3% lower to $561.44.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.3% to $416.11.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.4% to $471.53.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) eased 0.5% to $218.40.</li>
<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) outperformed, up 0.2%. The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 0.8%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>ResMed Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RMD#NYSE">RMD</a>) fell over 5% after Wolfe Research cut the stock rating from &#8216;Peer Perform&#8217; to &#8216;Underperform.&#8217;</li>
<li>General Motors Co.(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) shares surged over 2% on Wednesday following the announcement that its electric vehicle customers will soon be able to access Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&#8217;s Supercharger network using a GM-approved adapter.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/09/40923390/20-s-p-500-stocks-that-move-the-most-when-the-fed-starts-cutting-interest-rates">20 S&amp;P 500 Stocks That Move The Most When The Fed Starts Cutting Interest Rates</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Stocks Edge Lower As Fed Rate Decision Looms, Treasury Yields Rise As Odds Improve For Smaller Cut: What's Driving Markets Wednesday?

The Biden administration announced a pause on pending decisions on<a href="https://www.benzinga.com/news/24/01/36805265/president-biden-announces-lng-export-decisions-pause" target="_blank" rel="noreferrer noopener"> liquefied natural gas (LNG) exports</a> back in January.
And Chevron Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) CEO Michael Wirth hasn&#8217;t been happy about it. 
What Happened: In a speech at the GasTech conference in Houston on Tuesday, Wirth predicted that the permitting halt will lead to higher energy costs, jeopardize supplies for America's European allies, and increase emissions by delaying the shift from coal to gas, <a href="https://finance.yahoo.com/news/chevron-ceo-attacks-biden-lng-163106836.html">reported</a> Bloomberg.
Wirth further remarked that &#8220;AI's advancement will depend not just on the innovation hubs of Silicon Valley but also on the natural gas fields of the Permian Basin,&#8221; per Reuters.
He also criticized the Biden administration for imposing a moratorium on LNG exports, advocating instead for an end to its criticism of natural gas. Additionally, Wirth proposed that moving from coal to gas could represent &#8220;the most significant carbon reduction effort ever.&#8221;
Why It Matters: President Joe Biden said in a statement in January, "This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time,"
There&#8217;s also concern that the rise of artificial intelligence data centers have high power demands, which can undermine U.S. climate goals. The White House established a task force on AI Datacenter Infrastructure to align policies with economic and environmental objectives.
Last week, Chevron Shipping teamed up with&nbsp;Mitsui O.S.K. Lines (MOL)&nbsp;to install the Wind Challenger, a wind-assisted <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40858554/chevron-takes-step-towards-greener-shipping-details" rel="noreferrer noopener">propulsion&nbsp;system, on a new LNG carrier</a>.
Investors can gain exposure to the stock via&nbsp;EA Series Trust Strive U.S. Energy ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRLL#NYSE">DRLL</a>) and&nbsp;SPDR Select Sector Fund – Energy Select Sector&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>).
Also Read: <a href="https://www.benzinga.com/markets/equities/24/09/40692415/energy-giant-chevron-boosts-gulf-of-mexico-production-with-new-water-injection-projects" target="_blank" rel="noreferrer noopener">Energy Giant Chevron Boosts Gulf Of Mexico Production With New Water Injection Projects</a>
Price Action: Chevron shares are up 0.15% at $143.62 at the last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40775786/oil-prices-seesaw-as-potential-storm-nears-us-gulf-coast" target="_blank" rel="noreferrer noopener">Oil Prices Seesaw As Potential Storm Nears US Gulf Coast</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

DRLL

Chevron Slams Biden's LNG Export Pause, Touts Natural Gas For AI Growth: Report

Wall Street experienced a slightly positive session Tuesday, supported by investor optimism as the Federal Open Market Committee (FOMC) kicked off its two-day meeting, expected to deliver the first interest rate cut in over <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40878710/investors-bet-on-50-basis-point-rate-cut-wall-street-analysts-urge-caution-this-is-">four years on Wednesday.</a>
The session&#8217;s notable performers were small caps, with the Russell 2000 index surging about 1.3%, targeting its highest close since early August and outperforming larger-cap indices.
Among industries, solar, clean energy and regional banks led gains as traders eyed pockets of the markets that would benefit from lower interest rates.
On the macro front, August retail sales provided an upside surprise, growing by 0.1% month-over-month compared to <a href="https://www.benzinga.com/news/econ-s/24/09/40902634/retail-spending-remains-on-solid-footing-but-fed-must-weigh-rate-cuts-impact-on-workers-says-economi">the expected 0.2% decline</a>. This stronger-than-anticipated data slightly reduced the likelihood of a more aggressive 50-basis-point rate cut, with market-implied probabilities for such a move slipping from 67% to 63%, according to the CME FedWatch Tool.
Short-dated Treasury yields rose as expectations for a substantial rate cut moderated. Meanwhile, the dollar strengthened, gaining 0.2%. 
In the commodities market, gold retreated 0.7% from Monday&#8217;s record-high close. Oil prices increased by 1.3% following escalating geopolitical tensions in the Middle East.
Reports indicate a<a href="https://www.benzinga.com/etfs/specialty-etfs/24/09/40903888/simultaneous-pager-explosions-across-lebanon-leave-over-1-000-hezbollah-militants-wounded"> coordinated attack in Lebanon</a> led to thousands of pagers linked to Hezbollah militants being detonated, resulting in numerous casualties within the Iran-backed organization.
Additionally, Iran&#8217;s ambassador to Lebanon is reportedly injured, though the official responsibility for the attack remains unclaimed.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) jumped over 4%, buoyed by positive ETF inflows, signaling renewed investor interest in the digital asset space as interest rates shift. 
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,220.44</td>
<td>1.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,642.79</td>
<td>0.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,441.83</td>
<td>0.1%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,636.05</td>
<td>0.0%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:38 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091724&amp;t=be2bearmibe3na1">Benzinga Pro</a> platform:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.1% higher to $563.44.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.1% up to $417.61.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) also rose 0.1% to $473.60.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 1.2% to $220.28.</li>
<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) outperformed, up 1.2%. The Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 0.9%.</li>
</ul>
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
<ul>
<li>Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) surged over 6% after receiving approval from Health Canada for its updated SPIKEVAX COVID-19 vaccine, designed to target the KP.2 sub-lineage of SARS-CoV-2 in individuals aged six months and older.</li>
<li>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) climbed 3.5% following an upgrade from Bank of America, which raised its rating on the stock from Neutral to Buy and increased the price target from $200 to $300.</li>
<li>Hewlett Packard Enterprise Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) advanced nearly 5% after Bank of America also upgraded its rating from Neutral to Buy and boosted the price target from $21 to $24.</li>
</ul>
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<li><a href="https://www.benzinga.com/trading-ideas/technicals/24/09/40904599/stock-of-the-day-will-apple-bring-the-market-down">Stock Of The Day: Will Apple Bring The Market Down?</a></li>
</ul>
The image was created using artificial intelligence MidJourney.

Mid Cap

Retail Sales

MRNA

Small Caps, Bitcoin Rally As Traders Await Fed Rate Cut; Treasury Yields, US Dollar Tick Up On Strong Retail Sales: What's Driving Markets Tuesday?

After falling to the lowest level since December 2021, on Tuesday, oil recorded its first weekly gain in a month, buoyed by Hurricane Francine, which disrupted production in the Gulf of Mexico. Brent crude rose above $72 per barrel, pushing its weekly climb to about 2%, while West Texas Intermediate traded below $70 per barrel.
However, higher oil prices failed to fuel the rally in the energy space with many ETFs still in red. The popular ETFs &mdash; Energy Select Sector SPDR (ARCA:XLE), Vanguard Energy ETF (ARCA:VDE), SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (ARCA:XOP), Fidelity MSCI Energy Index ETF (ARCA:FENY) and VanEck Vectors Oil Services ETF (ARCA:OIH) &mdash; were down more than 2% each. All these ETFs have a Zacks Rank #1 (Strong Buy) or #2 (Buy).
The storm had prompted a production shutdown of around 730,000 barrels a day (bpd) in the Gulf of Mexico (about 42% of Gulf production), according to the US Bureau of Safety and Environmental Enforcement. The US Bureau of Safety and Environmental Enforcement stated that about 24% of crude production and 26% of natural gas output in the US Gulf of Mexico were offline due to the storm.
<h3>Energy ETFs in Focus</h3>
Energy Select Sector SPDR: It is the largest and the most popular ETF in the energy space, with an AUM of $34.1 billion. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 22 securities in its basket and charges 9 bps in annual fees.
Vanguard Energy ETF: It provides exposure to a basket of 113 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. Vanguard Energy ETF has amassed $7.6 billion in its asset base and charges 10 bps in annual fees.
SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF: It provides exposure to 53 oil and gas exploration and production companies by tracking the S&amp;P Oil &amp; Gas Exploration &amp; Production Select Industry Index. It has an AUM of $2.6 billion and charges 35 bps in fees per year.
Fidelity MSCI Energy Index ETF: It follows the MSCI USA IMI Energy Index, holding 112 stocks in its basket. FENY charges 8 bps in annual fees and has accumulated $1.5 billion in its asset base.
VanEck Vectors Oil Services ETF: It tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. VanEck Vectors Oil Services ETF holds 26 stocks in its basket. With an AUM of $1.5 billion, it charges 35 bps in annual fees.
<h2>Concerns</h2>
<h2>Weak Demand/Supply Trends</h2>
Despite the positive momentum, oil prices are still trading close to three-year lows amid persistent concerns over slowing demand.
International Energy Agency (IEA) lowered the oil demand outlook by 70,000 bpd to 900,000 bpd for this year, citing weak China demand and feeble growth in other regions. The Organisation of Petroleum Exporting Countries (OPEC) also slashed the 2024 oil demand growth forecast for the second time. It expects world oil demand to rise by 2.03 million bpd in 2024, down from last month&#39;s forecast of growth of 2.11 million bpd.
Last week, OPEC and its allies extended the oil production cuts of 2.2 million bpd through November and planned to phase out those beginning in December until November 2025. However, it will increase production in 2025 for the first time since 2022. The first addition to supply, of 180,000 bpd, is now expected in December. Additionally, growing output from the United States, Guyana, Brazil and Canada will continue to take a toll on oil prices.
<h2>Geopolitical Tensions</h2>
Geopolitical risks in the Middle East will continue to provide some support to oil prices. The ongoing conflict in Gaza and the potential for a broader regional escalation, involving Iran, Hamas and Hezbollah are contributing to market uncertainty.
<h2>Analysts Go Bearish</h2>
Analysts in a Reuters poll reduced their oil price forecasts for 2024 for the fourth consecutive month. The poll shows Brent prices to average $82.86 per barrel this year, down from $83.66 a barrel expected in the July forecast. West Texas Intermediate is projected to average $78.82 per barrel in 2024, down from $79.22 a barrel expected in last month&#39;s poll.
Analysts believe the bullish drivers of the ongoing OPEC+ cuts and geopolitical flare-ups in the Middle East will be offset by the bearish demand trends and oil imports in China and Europe.
<h2>Will the Fed Provide Some Respite?</h2>
The Fed is expected to cut interest rates at its meeting scheduled to take place on Sept 17 and 18. Lower interest rates tend to lower the expenses of purchasing goods and services, potentially stimulating economic expansion and driving oil demand.
<a href="https://www.zacks.com/stock/news/2335964/rise-in-oil-price-fails-to-lift-energy-etfs-what-s-ahead?cid=CS-BENZ-FT-etf_news_and_commentary-2335964">To read this article on Zacks.com click here.</a>

Analyst Ratings

Trading Ideas

FENY

Rise in Oil Price Fails to Lift Energy ETFs: What's Ahead?

Chevron Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) shares are trading higher on Friday. Chevron Shipping teamed up with Mitsui O.S.K. Lines (MOL) to install the Wind Challenger, a wind-assisted propulsion <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40852102/chevron-shipping-company-and-mol-to-install-wind-challenger-on-lng-carrier" rel="noreferrer noopener">system, on a new LNG carrier</a>.
This vessel will be the world&#8217;s first LNG carrier with wind-assisted propulsion, supporting Chevron&#8217;s efforts to lower carbon intensity.
The vessel is being built at the Geoje Shipyard of Hanwha Ocean Co., Ltd., with delivery scheduled for 2026.
In August 2024, MOL received approval in principle (AiP) from Nippon Kaiji Kyokai (Class NK), marking the first approval for an LNG carrier with a Wind-Assisted Ship Propulsion System. The Chevron-chartered vessel will be the first to implement this technology.
Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40556466/exxon-bets-big-on-oil-expects-crude-demand-to-defy-green-transition" rel="noreferrer noopener">Exxon Bets Big On Oil: Expects Crude Demand To Defy Green Transition</a>
Takeshi Hashimoto, President, and CEO of Mitsui O.S.K. Lines, said, &#8220;With the understanding and cooperation of Chevron, we are delighted to be able to expand the Wind Challenger Project to LNG carriers in addition to the two delivered Wind Challenger-equipped bulkers and other ongoing projects.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/08/40526637/chevron-secured-new-ghg-assessment-permit-in-australia" rel="noreferrer noopener">Chevron Secured New GHG Assessment Permit in Australia</a>
&#8220;Achieving GHG reduction in the maritime transport of LNG, which is increasingly in demand worldwide as a transition fuel, is a very important mission for us. This project will undoubtedly be a significant milestone towards achieving &#8216;net-zero emissions by 2050&#8217;, a medium to long-term goal of the Mitsui O.S.K. Lines Group.&#8221;
This month, Chevron disclosed that it had started water injection operations at its Jack/St. Malo and Tahiti facilities in<a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40692415/energy-giant-chevron-boosts-gulf-of-mexico-production-with-new-water-injection-projects" rel="noreferrer noopener"> the&nbsp;deepwater U.S. Gulf of Mexico</a>.
Investors can gain exposure to the stock via&nbsp;EA Series Trust Strive U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRLL#NYSE">DRLL</a>) and&nbsp;SPDR Select Sector Fund – Energy Select Sector&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>).
Price Action: CVX shares are up 1.17% at $140.84 at the last check Friday.
Image via Shutterstock
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40775786/oil-prices-seesaw-as-potential-storm-nears-us-gulf-coast" target="_blank" rel="noreferrer noopener">Oil Prices Seesaw As Potential Storm Nears US Gulf Coast</a></li>
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Chevron Takes Step Towards Greener Shipping: Details

A broadly softer-than-expected U.S. producer inflation report triggered market shifts on Thursday, driving down the value of the dollar and Treasury yields while boosting gold prices to <a href="https://www.benzinga.com/topic/gold">a new all-time high. </a>
Meanwhile, U.S. equity futures ticked upward, signaling a potential fourth consecutive session of gains for U.S. stocks.
Economic data released Thursday showed the headline Producer Price Index (PPI) for final demand slowing to 1.7% year-over-year in August, below market expectations of 1.8% and down from July's downwardly revised 2.1%. On a monthly basis, PPI increased by 0.2%, surpassing the forecasted 0.1% and improving from the revised flat reading for July.
Core PPI, which excludes volatile food and energy prices, remained stable at 2.4% year-over-year, slightly underperforming the expected 2.5%. On a month-to-month basis, core PPI rebounded with a 0.3% rise, up from the previous month's 0.2% decline and surpassing expectations of a 0.2% increase.
In parallel, weekly initial jobless claims came in at 230,000, in line with market forecasts, signaling stable labor market conditions.
Across the Atlantic, the European Central Bank (ECB) cut its key policy rate by 25 basis points, marking the second reduction since June. The ECB justified the move as part of its efforts to moderate monetary policy. 
The ECB kept its inflation outlook steady but revised its growth forecasts downward. The central bank emphasized a data-dependent approach for future decisions, with no commitment to further rate cuts.
<h3 class="wp-block-heading">Market Reactions</h3>
Market reactions to the U.S. data were relatively muted. Rate-cut expectations for the Federal Reserve's meeting next week remained stable, with the probability of a 25-basis-point cut holding firm at 85%. 
<ul>
<li>U.S. Treasury yields softened, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) down 0.2% as yields slightly decreased.</li>
<li>The U.S. dollar, as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), slipped 0.1%. </li>
<li>The S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), traded 0.2% higher in the premarket, as of 9:05 a.m. ET.</li>
<li>Tech stocks, followed by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), were 0.1% higher.</li>
<li>Small caps, as tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), rose 0.4%.</li>
<li>The&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) was the top-performing S&amp;P 500 sector in the premarket, up 0.6%.</li>
<li>Gold prices, monitored through the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), rose by 1.1% to 2,538 per ounce.</li>
<li>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 1.3%.</li>
</ul>
Read now: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40794070/exclusive-lazard-small-cap-expert-predicts-30-50-russell-2000-rally-on-the-back-of-">EXCLUSIVE: Lazard Small-Cap Expert Predicts 30%-50% Russell 2000 Rally On The Back Of Lower Interest Rates (UPDATED)</a></li>
</ul>
Photo: Shutterstock

Bonds

Commodities

XLRE

Gold Reaches Record High As Dollar Weakens On Soft Producer Inflation Data; Wall Street Eyes Fourth Day Of Gains

Wall Street witnessed a broad sell-off on Wednesday, except for the tech sector, as investor optimism over disinflation progress cooled following a <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40812986/inflation-slows-to-2-5-in-august-lowest-rate-since-february-2021-core-index-remai">mixed August inflation report.</a>
The Consumer Price Index (CPI) rose 2.5% year-over-year, slightly below the 2.6% estimate and down from July&#8217;s 2.9%, marking the slowest pace of inflation since February 2021. The bulk of this decline came from energy-related categories.
However, core inflation — excluding the more volatile components like food and energy — rose 0.3% month-over-month, surpassing expectations of 0.2%. The annual core CPI remained at 3.2%, reflecting persistent inflation in service-related sectors.
A key driver of inflation continues to be shelter costs, which rose 0.5% from the previous month—the sharpest increase since January — and account for nearly a third of the total CPI.
The report dashed hopes for a Federal Reserve rate cut in the upcoming meeting. Market expectations for a 50-basis-point cut plummeted to just 13%, down from 34% the day before, as per CME FedWatch. 
The inflation data gave the U.S. dollar a lift and nudged Treasury yields higher across the board. Sectors most sensitive to interest rates, such as real estate, materials and financials, led the sell-off.
In contrast, tech stocks defied the broader market slump, driven by strong gains in the semiconductor space. 
Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) surged 4.5%, buoyed by the market's reaction to the <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40817347/donald-trump-lost-debate-to-kamala-harris-will-lose-ground-in-the-polls-polymarket-traders">latest U.S. presidential debate</a> between Vice President Kamala Harris and former President Donald Trump. 
The two candidates engaged in a back-and-forth about <a href="https://www.benzinga.com/general/politics/24/09/40731719/goldman-sachs-kamala-harris-victory-bodes-well-for-us-economy-trump-tariffs-will-drive-up-inflat">tariffs on goods</a>, which would impact inflation and the chipmaking industry.
Solar stocks also rallied, with the Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) jumping over 4%, as the prospect of a Harris administration increased <a href="https://www.benzinga.com/markets/equities/24/09/40817317/solar-shares-climb-as-harris-gains-momentum-post-debate-against-trump-7-top-gainers-in-clean-ene">optimism for renewable energy policies.</a> First Solar Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>) was the top performer within the industry, jumping over 12%. 
Elsewhere, gold remained flat, while oil prices rebounded over 2% after Tuesday&#8217;s sell-off. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) dropped more than 2%.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,865.96</td>
<td>0.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,476.37</td>
<td>-0.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,092.21</td>
<td>-0.5%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,436.47</td>
<td>-0.7%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091124&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.3% lower to $547.10.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.7% to $405.59.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) inched 0.2% higher to $459.93.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.4% to $207.30.</li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 0.9%. The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) was the laggard, down 1.4%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Lithium-related stocks surged on Wednesday after reports of production disruptions in China sent the price of the commodity climbing. Albemarle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>), one of the world&#8217;s largest lithium producers, rallied 9.7% on the news.</li>
<li>AppLovin Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>) surged 8.6% to $93.63 after Bank of America analyst Omar Dessouky reiterated a Buy rating and raised the price target from $100 to $120.</li>
<li>Lucid Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) rallied 8.1% amid bullish remarks from Bank of America analyst John Murphy, CFA who expects the Gravity SUV to get a large total addressable market.</li>
<li>GameStop Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) tanked 13.8% as revenue missed expectations last quarter. </li>
<li>Trump Media &amp; Technology Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) plummeted 12.8% in reaction to the presidential debate. </li>
</ul>
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Earnings

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NVDA

Stocks Fall As Inflation Data Chills Rate-Cut Excitement, Chipmakers, Solar Sector Soar On Harris-Linked Boost: What's Driving Markets Wednesday?

Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) plans to cut production at its Baton Rouge, Louisiana refinery to as low as 20% of its 522,500 barrel-per-day capacity by Wednesday, as Hurricane Francine is forecasted to pass <a href="https://www.benzinga.com/topic/oil">just east of the facility</a>.
On Tuesday night, Francine intensified into a hurricane, leading Louisiana residents to evacuate inland before its expected landfall on Wednesday, reported Reuters.
As per the report, the storm is forecasted to bring life-threatening winds, heavy rains, and a storm surge of up to 10 feet (3 meters).
The Baton Rouge refinery, the sixth largest in the U.S., is scaling back operations in anticipation of the storm.
Exxon spokesperson Lauren Kight said, &#8220;We're closely monitoring and preparing for severe weather that may impact our Baton Rouge operations.&#8221; 
Other major U.S. Gulf oil and gas producers are also gearing up to weather the storm.
On Tuesday, Shell said that it is closely monitoring Tropical Storm Francine and has shut in production at its Perdido, Auger, and Enchilada/Salsa assets due to <a target="_blank" href="https://www.shell.us/media/us-storm-center/shell-us-storm-updates.html" rel="noreferrer noopener">downstream</a> impacts.
The company added that drilling at the Whale asset, which is scheduled to begin operations later this year, has also been safely paused.
According to S&amp;P Global Commodity Insights, the U.S. offshore is currently producing <a target="_blank" href="https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/090924-louisiana-refineries-for-brace-for-tropical-storm-francine-texas-plants-on-guard" rel="noreferrer noopener">approximately</a> 1.8 million barrels per day (b/d) of crude oil and 1.9 billion cubic feet per day (Bcf/d) of natural gas.
This week, Exxon reportedly withdrew from bidding for Galp Energia&#8217;s 40% stake in Namibia&#8217;s Mopane oil discovery. The discovery holds 10 billion barrels of oil and gas, <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40772105/exxon-passes-on-10b-namibian-oil-field-report" rel="noreferrer noopener">valued at over $10 billion</a>.
Investors can gain exposure to the XOM via&nbsp;Energy Select&nbsp;Sector&nbsp;SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and&nbsp;IShares U.S.&nbsp;Energy&nbsp;ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>).
Price Action: Exxon shares are down more than 1% at $109.67 at the last check Wednesday.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40556466/exxon-bets-big-on-oil-expects-crude-demand-to-defy-green-transition" target="_blank" rel="noreferrer noopener">Exxon Bets Big On Oil: Expects Crude Demand To Defy Green Transition</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock

iShares Dow Jones US Energy Sector Index Fund

Exxon, Other US Oil Majors Brace For Tropical Storm Francine: Report

Risk aversion is shaping another tough day for Wall Street, with stocks trading in the red as investors await the presidential debate between Vice President Kamala Harris and former President Donald Trump,<a href="https://www.benzinga.com/general/politics/24/09/40797797/trump-vs-harris-debate-do-voters-want-to-hear-more-about-economy-healthcare-or-bitcoin"> scheduled at 9 p.m. ET. </a>
Energy and financial sectors are witnessing deeper losses, sharply underperforming the rest of the market. 
In the latest monthly report, OPEC revised its global oil demand growth forecasts downward, now expecting 2024 oil demand to increase by 2.03 million barrels per day (bpd), down from the previous estimate of 2.1 million bpd. For 2025, OPEC has trimmed global demand growth forecast to 1.74 million bpd, compared to the earlier projection of 1.78 million bpd.
On the regulatory front, Federal Reserve Board Vice Chair for Supervision Michael Barr announced changes to the BASEL III and GSIB (Global Systemically Important Banks) surcharge proposals, which will now increase capital requirements for the largest banks by 9%, down from the original plan of 19%. Barr also clarified that banks with assets under $250 billion would largely be exempt from these heightened requirements.
Despite this capital relief, financial stocks sank across the board. The financial sector gauge fell 2%, with JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) dropping 7%. The SPDR Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) declined 2.6%, reflecting ongoing pressure even on the regional bank industry which is largely exempted from the regulation.
Elsewhere, Treasuries continued to rally. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rose 0.6%, hitting its highest levels since late July 2023. 
The Japanese yen gained 0.5%, while both gold and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) traded broadly flat, reflecting a mixed sentiment in alternative assets.
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,667.20</td>
<td>0.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,458.25</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,509.61</td>
<td>-0.8%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,081.31</td>
<td>-1.0%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091024&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.2% lower to $545.43.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.6% to $406.46.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) inched 0.1% higher to $454.91.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 1% to $206.36.</li>
<li>The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) outperformed, up 0.8%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and the Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) were the laggards, down 2.1% and 1.9%, respectively.</li>
</ul>
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
<ul>
<li>Worst-performing energy stocks were Diamondback Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NYSE">FANG</a>), APA Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APA#NYSE">APA</a>) and Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>), down 5.1%, 5% and 3.4%, respectively.</li>
<li>Hewlett Packard Enterprise Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) fell over 7% as the company announced it has commenced a public offering of $1.35 billion (27 million shares) of Series C mandatory convertible preferred stock.</li>
<li>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) rallied 12% on the back of stronger-than-expected quarterly results. </li>
<li>Other stocks reacting to earnings were Rubrik Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBRK#NYSE">RBRK</a>) down 5.8% and Academy Sports and Outdoors Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASO#NASDAQ">ASO</a>) up 5.68%.</li>
<li>GameStop Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) will report earnings after the close.</li>
</ul>
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Photo: Shutterstock

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Wall Street Falls Ahead Of Trump-Harris Debate, Bank Stocks Tumble, Oil Plummets To $65 On Weaker Demand Outlook: What's Driving Markets Tuesday?

Bank of America has reshuffled its sector outlooks, raising Utilities to &#8220;overweight&#8221; while downgrading <a href="https://www.benzinga.com/topic/energy">Energy to &#8220;market-weight.&#8221;</a>
The changes come as elevated volatility and policy uncertainty drive a recalibration of investment strategies. According to Savita Subramanian, Bank of America&#8217;s head of U.S. equity strategy, the shifting economic and political landscape has altered the risk-reward profiles <a href="https://www.benzinga.com/markets">of these key sectors.</a>
<h3 class="wp-block-heading">Utilities: Defensive Hedge With Growth Potential</h3>
Subramanian argues that Utilities, as tracked by the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>), long regarded as a defensive sector, have become increasingly attractive in the <a href="https://www.benzinga.com/markets">current rate environment</a>.
As economic uncertainty persists, utilities offer stable fundamentals and a built-in defensive hedge against inflation. 
One of the core factors behind the Bank of America&#8217;s upgrade is their higher dividend yield, which has become more appealing given the revised outlook for interest rates.
Bank of America economists now predict terminal interest rates will reach 3.25% by 2025, lower than previous expectations, and this environment is favorable for income-generating assets like utilities. 
Further boosting the outlook for utilities is their exposure to artificial intelligence (AI) technologies. As companies in the sector begin to integrate AI for efficiency and operational improvements, there could be longer-term growth opportunities that hadn&#8217;t been factored in before, the analyst says.
Utilities are now benefiting from AI in ways that enhance productivity, making them not just a defensive play but also an indirect AI beneficiary, she adds.
<h3 class="wp-block-heading">Energy: From Value To Value Trap?</h3>
In contrast, Bank of America&#8217;s downgrade of the Energy sector, as tracked by the Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), comes amid concerns over political risk and weakening fundamentals. 
Although energy companies have improved in terms of quality and discipline compared to prior cycles, the sector faces rising uncertainty that could undermine its stability.
Subramanian warns that the supply discipline that has supported oil prices could start to unravel if the political environment changes. This coincides with Bank of America&#8217;s commodity strategists lowering their oil price forecasts, casting doubt on the sector&#8217;s growth prospects. 
&#8220;Energy stocks might look cheap, but they could be &#8216;cheap for a reason,'&#8221; she notes. 
One of the most worrying signals is the sector's earnings revisions: Energy now holds the &#8220;most negative earnings revision ratio of all sectors,&#8221; indicating that analysts are increasingly pessimistic about future earnings growth.
Moreover, Energy&#8217;s strong performance in recent years could turn into a liability if the political winds shift. Regulatory pressures, including potential changes in drilling policies and climate regulations, are key risks that could weigh heavily on the sector's outlook.
<h3 class="wp-block-heading">Avoiding The Tech Dip: Underweight Information Technology</h3>
Bank of America remains cautious on the beaten-down Information Technology sector, maintaining its &#8220;underweight&#8221; rating, despite arguments that the recent selloff has created a buying opportunity.
Subramanian highlights that Tech stocks still trade at record valuations, particularly in terms of enterprise value to sales (EV/Sales), making the sector vulnerable to further downside. 
&#8220;Technology is cyclical, not secular,&#8221; Subramanian asserts, meaning that its performance is closely tied to broader economic trends, not immune to them as some investors might hope.
Another concern is the upcoming changes in Standard &amp; Poor's index cap rules, which are likely to impact the largest Tech names. These changes could introduce concentration risk, leading to passive selling that could pressure some of the sector's mega-cap stocks. 
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Image created using artificial intelligence via Midjourney.

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Bank Of America Warns Energy Could Be 'Cheap For A Reason,' Highlights Utilities As Defensive Play

Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) shares are trading higher premarket Monday. The oil major has reportedly withdrawn from the competition to acquire half of Galp Energia&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLPEY#OTC">GLPEY</a>) stake in a significant oil discovery in Namibia.
Earlier, over 12 big oil companies had shown interest in Galp&#8217;s 40% stake in the offshore Mopane discovery, reported Reuters.
The Mopane discovery is estimated to hold at least 10 billion barrels of oil and gas equivalent and could be valued at over $10 billion. Galp also proposes that the buyer operate the field.
As per the report, the reasons for Exxon&#8217;s withdrawal are unclear, but other companies continue to pursue the sale.&nbsp;&nbsp;
This year, other major oil companies showed interest in expanding their presence in Namibia.
TotalEnergies signed agreements to increase its stake in Namibia&#8217;s blocks 2913B &amp; <a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36572202/totalenergies-99m-investment-boosts-its-share-in-namibian-oil-discovery-blocks" rel="noreferrer noopener">2912, collaborating with QatarEnergy</a>.
Also, Shell stated its plans to drill exploration and appraisal wells in the area, shifting focus south of Namibia where recent discoveries in the prolific <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39683994/shell-requests-approval-for-exploration-wells-off-south-africas-coast-report" rel="noreferrer noopener">Orange Basin suggest further potential</a>.
Last week, Exxon inked a deal with&nbsp;Abu Dhabi National Oil Company (ADNOC), under which ADNOC will acquire a&nbsp;35%&nbsp;equity stake in Exxon Mobil&#8217;s proposed low-carbon hydrogen and&nbsp;<a target="_blank" href="https://www.benzinga.com//node/40713530" rel="noreferrer noopener">ammonia production facility in Baytown, Texas</a>.
Investors can gain exposure to the XOM via&nbsp;Energy Select&nbsp;Sector&nbsp;SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and&nbsp;IShares U.S.&nbsp;Energy&nbsp;ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>).
Price Action: XOM shares are up 0.65% at $113.37 at the last check premarket Monday.
Photo: Del Henderson Jr. via Shutterstock
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40556466/exxon-bets-big-on-oil-expects-crude-demand-to-defy-green-transition" target="_blank" rel="noreferrer noopener">Exxon Bets Big On Oil: Expects Crude Demand To Defy Green Transition</a></li>
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Exxon Passes On $10B Namibian Oil Field: Report

Signs of a cooling labor market last month pushed major U.S. stock averages lower on Thursday, ahead of the highly anticipated August jobs report set for release on Friday.
Private sector job creation came in at 99,000 for August, according to ADP data, marking the slowest pace of growth since January 2021 and missing <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40728795/private-employment-grows-by-99-000-in-august-sharply-misses-forecasts-of-140-000-">the forecast of 140,000.</a>
A stronger-than-expected services sector activity sentiment for August offered some relief to broader recession concerns, but an employment subindex bolstered hints of the ongoing cooling <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40732534/services-sector-activity-expands-more-than-expected-in-august-but-employment-growth">in the labor market.</a>
The S&amp;P 500 dropped below the 4,500 support level for the first time since mid-August, extending weekly losses to 2.9%, and is on track for its worst week since mid-April.
Tech stocks managed to pare losses, with semiconductor shares holding steady. Blue-chip stocks underperformed, as the Dow Jones slid 0.8%, while small-cap stocks fell 0.6%.
A decision from OPEC+ to delay an October oil production increase by two months supported crude prices and further pressured already fragile investor sentiment. West Texas Intermediate (WTI) crude stopped its decline after suffering its worst two-day slump since October 2023.
Treasury yields dipped slightly, and the U.S. dollar softened. Meanwhile, gold edged higher by 0.6%.
Natural gas was Thursday's standout performer, with Henry Hub prices surging over 5%. The U.S. Energy Information Administration reported a natural gas storage injection of 13 billion cubic feet (Bcf) for the week ending Aug. 30, significantly below historical averages and expectations.
Sentiment in crypto assets worsened, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) tumbling 3% to $56,170. 
<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>% change</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,906.30</td>
<td>-0.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,495.09</td>
<td>-0.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,132.72</td>
<td>-0.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,638.99</td>
<td>-0.8%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:52 p.m.</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090524&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.5% lower to $548.40.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.8% to $407.30.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.1% lower to $459.90.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.6% to $211.35.</li>
<li>The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up by 0.8%, while the Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 1.5%.</li>
</ul>
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rallied 4% after announcing it plans to roll out its Full Self-Driving (FSD) technology in China and Europe during the first quarter of 2025, pending regulatory approvals. The EV maker will also produce a six-seat Model Y variant in China, starting next year.</li>
<li>Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) announced Thursday it has reached an agreement to acquire Frontier Communications Parent Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NYSE">FYBR</a>) in an all-cash deal valued at approximately $20 billion. Shares of Verizon eased 0.6%, while those of Frontier Communication Parent plummeted 9% after rallying 37% on Wednesday.</li>
<li>United Steel Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) rose 4% after tumbling 17% Wednesday. According to Reuters, the Committee on Foreign Investment in the U.S. (CFIUS) has raised concerns about potential national security risks related to Nippon Steel&#8217;s planned $14.9 billion acquisition of U.S. Steel. </li>
<li>NIO Inc. &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) rallied 11% in reaction to upbeat quarterly results and improved guidance.</li>
<li>Other stocks reacting to earnings results included The Toro Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTC#NYSE">TTC</a>) down over 10%, Copart Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>) down 6.7%, Hewlett Packard Enterprise Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) down 5.3%, Core &amp; Main, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNM#NYSE">CNM</a>) down 0.7%, Credo Technology Group Holding Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRDO#NASDAQ">CRDO</a>) and C3.ai, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AI#NYSE">AI</a>), both down around 13%.</li>
<li>Companies reporting results after the close include Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Samsara Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IOT#NYSE">IOT</a>), DocuSign Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DOCU#NASDAQ">DOCU</a>), Ui Path Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PATH#NYSE">PATH</a>) and Smartsheet Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMAR#NYSE">SMAR</a>). </li>
</ul>
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40718185/could-august-jobs-numbers-keep-recession-fears-at-bay-this-time-is-different-analys">Could August Jobs Numbers Keep Recession Fears At Bay? &#8216;This Time Is Different,&#8217; Analyst Says</a> Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a> on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!</li>
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Photo: Shutterstock

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S&P 500 Falls Below 5,500 Points On Cooling Jobs Data, Tesla Leads Tech Gains, Natural Gas Spikes: What's Driving Markets Thursday?

Designed to provide broad exposure to the Energy ETFs category of the market, the First Trust Energy AlphaDEX ETF (ARCA:FXN) is a smart beta exchange traded fund launched on 05/08/2007.
<h2>What Are Smart Beta ETFs?</h2>
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
<h2>Fund Sponsor &amp; Index</h2>
FXN is managed by First Trust Advisors, and this fund has amassed over $478.36 million, which makes it one of the larger ETFs in the Energy ETFs. This particular fund, before fees and expenses, seeks to match the performance of the StrataQuant Energy Index.
The StrataQuant Energy Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
<h2>Cost &amp; Other Expenses</h2>
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.62% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.02%.
<h2>Sector Exposure and Top Holdings</h2>
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it&#39;s still important for investors to research a fund&#39;s holdings.
This ETF has heaviest allocation in the Energy sector - about 99.10% of the portfolio.
Looking at individual holdings, Valero Energy Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vlo#NYSE">VLO</a>) accounts for about 4.23% of total assets, followed by Matador Resources Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtdr#NYSE">MTDR</a>) and Nov Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nov#NYSE">NOV</a>).
Its top 10 holdings account for approximately 39.22% of FXN&#39;s total assets under management.
<h2>Performance and Risk</h2>
The ETF has gained about 1.68% so far this year and is down about -4.04% in the last one year (as of 09/04/2024). In the past 52-week period, it has traded between $15.73 and $19.35.
The fund has a beta of 1.61 and standard deviation of 28.88% for the trailing three-year period, which makes FXN a high risk choice in this particular space. With about 41 holdings, it has more concentrated exposure than peers.
<h2>Alternatives</h2>
First Trust Energy AlphaDEX ETF is an excellent option for investors seeking to outperform the Energy ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Energy ETF (ARCA:VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (ARCA:XLE) tracks Energy Select Sector Index. Vanguard Energy ETF has $8.22 billion in assets, Energy Select Sector SPDR ETF has $36.48 billion. VDE has an expense ratio of 0.10% and XLE charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Energy ETFs.
<a href="https://www.zacks.com/stock/news/2331117/is-first-trust-energy-alphadex-etf-fxn-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2331117">To read this article on Zacks.com click here.</a>

MTDR

Is First Trust Energy AlphaDEX ETF a Strong ETF Right Now?

Wall Street traded slightly higher on Wednesday, rebounding after the sharp sell-off a day earlier that saw chipmakers tumble, with NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shedding around $280 billion in market value — the largest single-day drop in history.
Investors processed fresh insights from July labor market statistics, which confirmed cooling conditions as job openings fell to their lowest level in three years, almost closing the <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40711148/july-job-openings-fall-to-3-year-lows-gap-with-unemployment-narrows-to-near-parit">gap with unemployment levels.</a>
Expectations for a Federal Reserve interest rate cut improved, with market participants now assigning a 43% implied probability of a 50-basis-point cut in September, up from 38% the previous day.
Attention now shifts to key August labor data, with the ADP private payrolls report due Thursday, followed by the official jobs report on Friday.
Major equity indices were up marginally, while bonds outperformed, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rising 0.7%, adding to Tuesday&#8217;s 1.3% gain.
Notably, chipmakers, as tracked by the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>), rose 1%. 
The U.S. dollar weakened, losing 0.4% as falling Treasury yields weighed on the currency. Gold inched up 0.2%, set to break a three-day losing streak.
Oil prices continued to decline, falling 0.7% despite OPEC+ announcing a delay in its planned production increases.
Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) bounced back 1.6%, trading at $58,200.
<h1 class="wp-block-heading">Wednesday&#8217;s Performance Among Major Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,162.23</td>
<td>0.4%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,033.77</td>
<td>0.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,985.75</td>
<td>0.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,535.16</td>
<td>0.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:35 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090424&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.2% higher to $552.98.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.2% to $411.03.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.4% to $463.53.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) increase 0.4% to $214.31.</li>
<li>The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, up by 0.8%, while the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 0.8%.</li>
</ul>
<h1 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h1>
<ul>
<li>Dollar Tree Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DLTR#NASDAQ">DLTR</a>) sunk 20% after missing quarterly earnings estimates and delivering a guidance cut.</li>
<li>Other stocks reacting to company earnings were Dicks Sporting Goods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DKS#NYSE">DKS</a>) down 5%, Hormel Foods Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRL#NYSE">HRL</a>) down 6.6% and Ciena Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) up 2.2%.</li>
<li>ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) fell 3.2% after UBS downgraded the Dutch chipmaker from Buy to Neutral, also cutting the price target. </li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rose 5% on upbeat sales data in China. The China Passenger Car Association reported that sales of Tesla's China-made electric vehicles rose 17% compared to July and increased 3% year-over-year.</li>
<li>Companies reporting earnings after the close include Copart Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>), Hewlett Packard Enterprise Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) and Caseys General Stores Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CASY#NASDAQ">CASY</a>).</li>
</ul>
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<li><a href="https://www.benzinga.com/markets/equities/24/09/40713134/bank-of-canada-cuts-rates-again-as-inflation-labor-market-cool-canadian-stocks-rebound-loonie-st">Bank Of Canada Cuts Rates Again As Inflation, Labor Market Cool: Canadian Stocks Rebound, Loonie Strengthens</a></li>
</ul>
This image was created using artificial intelligence MidJourney.

ASML

CASY

CIEN

DLTR

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Stocks Rebound, Chipmakers Halt Bloodbath As Traders Upgrade Rate Cut Wagers; Tesla Rises, Dollar Tree In Free Fall: What's Driving Markets Wednesday?

Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) shares are trading lower today. The company inked a deal with Abu Dhabi National Oil Company (ADNOC), under which ADNOC will acquire a 35% equity stake in Exxon Mobil's proposed low-carbon hydrogen and <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40705073/khaled-bin-mohamed-bin-zayed-witnesses-signing-ceremony-for-adnoc-and-exxonmobil-partnering-in-wor" rel="noreferrer noopener">ammonia production facility in Baytown, Texas</a>.
The agreement marks the company&#8217;s significant investment in U.S. energy production and the global energy transition. The final investment decision is anticipated in 2025, with startup projected for 2029.
The facility is expected to become the world's largest of its kind upon startup, subject to supportive government policy and regulatory approvals.
It aims to produce up to 1 billion cubic feet of low-carbon hydrogen daily, with about 98% of CO2 removed, and over 1 million tons of low-carbon ammonia annually.
The company aims to reduce greenhouse gas emissions in hard-to-decarbonize sectors, meet rising demand for lower-carbon fuels, and advance the goal of achieving net-zero emissions.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40556466/exxon-bets-big-on-oil-expects-crude-demand-to-defy-green-transition" rel="noreferrer noopener">Exxon Bets Big On Oil: Expects Crude Demand To Defy Green Transition</a>
Darren Woods, ExxonMobil Chairman and CEO, said, &#8220;This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we&#8217;re pleased to add ADNOC&#8217;s proven experience and global market insights to our Baytown facility.&#8221;
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, stated, &#8220;This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy.&#8221;
&#8220;We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonize heavy-emitting sectors.&#8221;
Last month, Exxon Mobil reportedly planned to sell conventional oil assets in the Permian Basin,<a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40596410/exxon-mobil-eyes-permian-assets-sale-to-fuel-shale-expansion-report" rel="noreferrer noopener"> which could be valued at&nbsp;$1 billion</a>.
Investors can gain exposure to the XOM via&nbsp;Energy Select&nbsp;Sector&nbsp;SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and&nbsp;IShares U.S.&nbsp;Energy&nbsp;ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>).
Price Action: XOM shares are down 0.54% at $114.84 at the last check Wednesday.
Photo: Del Henderson Jr. via Shutterstock
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40467815/arbitration-to-uncover-hidden-value-of-hess-guyana-oil-assets-in-exxon-mobil-vs-chevron-dispute-" target="_blank" rel="noreferrer noopener">Arbitration To Uncover Hidden Value Of Hess' Guyana Oil Assets In Exxon Mobil vs. Chevron Dispute: Report</a></li>
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Contracts

ExxonMobil Strikes Major Hydrogen Deal: ADNOC Takes Stake In Proposed Low-Carbon Texas Project

The first trading session of September started with a widespread selloff across risk assets, as traders took a cautious approach ahead of what is historically a volatile <a href="https://www.benzinga.com/24/09/40676774/september-market-seasonality-why-this-month-is-historically-the-toughest-for-investors">month for global markets.</a>
At 1 p.m. in New York, the S&amp;P 500 had dropped 1.6%, while small-cap stocks nosedived 2.7%. The Magnificent Seven, tracked by the Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), offered no safe haven, declining 2.3%.
The CBOE Volatility Index (VIX), often referred to as Wall Street&#8217;s &#8220;fear gauge,&#8221; surged by 20%, reflecting heightened anxiety among investors.
Tech stocks were hit hard, with the Nasdaq 100 down 2.5%, on track for its worst one-day drop since Aug. 1. 
Tuesday&#8217;s selloff was reminiscent of the market turmoil caused by the unwinding of the yen-dollar carry trade earlier in the summer. This time, the yen jumped 0.8% against the dollar after hawkish comments from <a href="https://www.benzinga.com/markets/asia/24/09/40692633/japanese-yen-rallies-on-bank-of-japans-rate-hike-pledge-us-manufacturing-activity-contraction">Bank of Japan Governor Kazuo Ueda overnight</a>.
Despite the yen&#8217;s strength, the U.S. dollar gained 0.2% against a basket of other currencies, buoyed by broader market movements.
On the economic front, <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40689835/us-manufacturing-activity-extends-contraction-for-fifth-month-demand-continues-to">U.S. manufacturing data for August showed a deeper-than-expected contraction</a>, with the employment index indicating mounting challenges ahead of a crucial jobs report due later in the week.
Treasury yields fell as the weak manufacturing data fueled speculation of potential interest rate cuts by the Federal Reserve. The yield on the two-year Treasury note, which is sensitive to policy changes, dipped 3 basis points, while the 10-year Treasury note yield dropped 7 basis points. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rose 1.2%.
In commodities, gold prices slipped 0.5%, while oil prices plunged more than 4%, marking the steepest one-day decline since October 2023. West Texas Intermediate (WTI) crude oil fell to levels not seen since early January 2024, driven by concerns over weaker demand and expectations of increased OPEC supply next month.
Cryptocurrency markets also faced pressure, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) down 2.5% as overall sentiment remained weak.
<h3 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day change (%)</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,057.56</td>
<td>-1.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,557.61</td>
<td>-1.6%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,102.46</td>
<td>-2.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,160.05</td>
<td>-2.7%</td>
</tr>
<tr>
<td>CBOE VIX</td>
<td>18.54</td>
<td>19.2%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:15 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090324&amp;t=be2bearmibe3na1">Benzinga Pro </a>data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.5% lower to $555.15.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 1.1% to $411.80.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) tumbled 2.4% to $45.16.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) sunk 2.6% to $214.30.</li>
<li>The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, up by 1%, while the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) tumbled 3.5%. </li>
</ul>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
<ul>
<li>Among mega-cap stocks, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) plummeted 7.6%, marking the worst one-day drop since April.</li>
<li>Other major chipmakers also tanked including Marvell Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), down 7.3%, Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), down 6.5%, Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), down 6%, and Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), down 5.7%. </li>
<li>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) fell 7.5% amid news that the stock might be removed from the Dow Jones index.</li>
<li>Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) tumbled almost 8% after Wells Fargo downgraded the stock to an Underweight rating and slashed its price target.</li>
</ul>
Read Next: <a href="https://www.benzinga.com/trading-ideas/technicals/24/09/40691352/stock-of-the-day-berkshire-hathaway-trades-above-usual-range-time-to-sell-the-warren-buf">Stock Of The Day: Berkshire Hathaway Trades Above Usual Range — Time To Sell The Warren Buffett Stock?</a>
Bear market illustration generated using artificial intelligence via Dall-E.

INTC

MAGS

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Wall Street Tumbles, Yen Surges, Oil Sinks Below $70, VIX Spikes As Traders Brace For Volatile Month: What's Driving Markets Tuesday?

Chevron Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) shares are trading lower today. The company disclosed that it has started water injection operations at its Jack/St. Malo and Tahiti facilities in the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40685755/chevron-boosts-oil-and-natural-gas-recovery-at-two-facilities-in-u-s-gulf-of-mexico" rel="noreferrer noopener">deepwater U.S. Gulf of Mexico</a>.
The St. Malo field and Jack/St. Malo facility, 280 miles south of New Orleans in 7,000 feet of water, has produced nearly 400 million barrels of oil equivalent since 2014.
At the Jack/St. Malo facility, Chevron successfully initiated its first water injection in the deepwater Wilcox trend at the St. Malo field. This project, completed under budget, includes new water injection facilities, two production wells, and two injection wells.
The project is anticipated to increase the St. Malo field&#8217;s gross ultimate recovery by approximately 175 million barrels of oil equivalent.
Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40397860/chevron-to-pay-richmond-550m-over-10-years-avoids-new-refinery-tax" rel="noreferrer noopener">Chevron To Pay Richmond $550M Over 10 Years, Avoids New Refinery Tax</a>
At the Tahiti facility, 190 miles south of New Orleans in 4,100 feet of water, Chevron has begun water injection into deepwater wells, including installing a new manifold and 20,000 feet of flowline.
These projects aim to enhance oil and natural gas recovery, where Chevron produces some of the world&#8217;s lowest-carbon oil and gas.
Bruce Niemeyer, president, Chevron Americas Exploration &amp; Production, said, &#8220;Delivery of these two projects maximizes returns from our existing resource base and contributes toward growing our production to 300,000 net barrels of oil equivalent per day in the U.S. Gulf of Mexico by 2026.&#8221;&nbsp;
&#8220;These achievements follow the recent production startup at our high-pressure Anchor field, reinforcing Chevron&#8217;s position as a leader in technological delivery and project execution in the Gulf.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/asia/24/08/40478875/energy-giant-chevron-to-plough-1b-into-indias-bengaluru-tech-centre-add-600-jobs" rel="noreferrer noopener">Energy Giant Chevron To Plough $1B Into India&#8217;s Bengaluru Tech Centre, Add 600 jobs</a>
Investors can gain exposure to the stock via&nbsp;EA Series Trust Strive U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRLL#NYSE">DRLL</a>) and&nbsp;SPDR Select Sector Fund – Energy Select Sector&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>).
Price Action: CVX shares are down 1.7% at $145.44 at the last check Tuesday.
Photo by Jonathan Weiss on Shutterstock
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40556466/exxon-bets-big-on-oil-expects-crude-demand-to-defy-green-transition" target="_blank" rel="noreferrer noopener">Exxon Bets Big On Oil: Expects Crude Demand To Defy Green Transition</a></li>
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Energy Giant Chevron Boosts Gulf Of Mexico Production With New Water Injection Projects

Wall Street is seeing a relatively timid session, with the major indices displaying a slight negative performance. 
While a timid rebound in semiconductor stocks is taking shape, aided by NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&#8217;s pause of the sell-off in the previous session, the Dow Jones edged lower after reaching record <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40633329/us-stocks-rally-dow-jones-achieves-record-highs-as-gdp-outperforms-nvidia-falls-whats-driv">highs the day before.</a>
The weak risk sentiment on Friday threatens to end the S&amp;P 500 and Nasdaq 100's streak of three consecutive weekly rallies
The AI darling rose by 1% by midday in New York, contributing to the positive momentum in chipmakers, buoyed by strong earnings from Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) and MongoDB Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDB#NASDAQ">MDB</a>).
On the data front, the Federal Reserve's preferred inflation gauge — the Personal Consumption Expenditure (PCE) Price Index — remained flat in July, breaking a three-month streak of declines.
While the index came in slightly below expectations of an increase, personal spending and income data accelerated more than anticipated, indicating that the positive momentum among U.S. consumers extended into the first month of the current quarter.
The dollar gained 0.3% on the back of the economic data, as traders trimmed expectations on a large 50-basis-point rate cut in September. The greenback&#8217;s strength pressured commodities: gold dropped 0.7%, while oil declined by 2.7%.
The sentiment in the cryptocurrency market remains negative, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) down 2.3%.
<h1 class="wp-block-heading">Friday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,367.31</td>
<td>0.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,588.51</td>
<td>-0.1%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,177.11</td>
<td>-0.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,192.94</td>
<td>-0.4%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:30 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent083024&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.1% lower to $557.38.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.4% to $412.33.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was up 0.1% to $470.97.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.6% to $217.58.</li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up by 0.1%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down by 0.7%.</li>
</ul>
<h1 class="wp-block-heading">Friday&#8217;s Stock Movers</h1>
<ul>
<li>Marvell Technology Inc. rose 9.1%; eer MongoDB Inc. soared 16%.</li>
<li>Other stocks reacting to company earnings included Autodesk, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>) up 1.7%, Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) up 3%, Elastic N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESTC#NYSE">ESTC</a>) down over 27%, Lululemon Athletica Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>) down about 0.7% and Ulta Beauty, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ULTA#NASDAQ">ULTA</a>) down 4.3%).</li>
<li>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) soared by 7.7% after rumors indicating he company is considering options, including separating its product design and manufacturing divisions.</li>
</ul>
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40655318/ethereum-co-founders-2-1m-ether-transfer-raises-eyebrows-why-is-vitalik-buterin-dumping"> • Ethereum Co-Founder&#8217;s $2.1M Ether Transfer Raises Eyebrows: Why Is Vitalik Buterin Dumping?</a>
Photo: Lucky Photographer via Shutterstock

ADSK

DELL

ESTC

LULU

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Energy ETFs are becoming increasingly appealing due to rising oil prices and growing energy demand. Supply disruptions and potential Fed rate cuts further enhance profitability and investment potential in the energy sector. Therefore, it could be wise to consider watching energy ETFs: iShares Global Energy (IXC), Vanguard Energy Index Fund ETF (VDE), and The Energy Select Sector SPDR (XLE). Read on... The energy market is poised for growth, driven by rising oil prices, increasing demand for petrochemicals, and higher global incomes. Emerging markets in Asia are playing a key role in this expansion. As oil prices surge, energy companies, especially oil producers, stand to benefit from higher revenues.
In this environment, investors might want to keep an eye on top energy ETFs, such as iShares Global Energy ETF (<a href="https://stocknews.com/stock/IXC/">IXC</a>), Vanguard Energy Index Fund ETF Shares (<a href="https://stocknews.com/stock/VDE/">VDE</a>), and The Energy Select Sector SPDR Fund (<a href="https://stocknews.com/stock/XLE/">XLE</a>).
Despite weak economic data from China, <a href="https://www.accuweather.com/en/hurricane/hurricane-francine-disrupted-oil-industry-and-roared-ashore-in-louisiana-with-high-winds-flooding/1691417">Hurricane Francine</a> disrupted the oil industry in September 2024, leading to <a href="https://www.reuters.com/markets/commodities/oil-prices-inch-up-fed-rate-cut-outlook-2024-09-16/">higher oil prices</a> due to halted production and supply concerns. This environment benefits companies with available production capacity. Additionally, supply disruptions have also driven up natural gas prices, creating broader opportunities in the energy market.
Meanwhile, speculation about potential Fed rate cuts could stimulate economic activity and increase oil demand, fostering an optimistic outlook for the energy market. Despite recent <a href="https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/091024-opec-trims-global-oil-demand-forecasts-as-prices-tumble#:~:text=Global%20oil%20demand%20will%20grow,40%2C000%20b%2Fd%20downward%20revision.">downward revisions</a> in global oil demand, optimism persists due to strong growth in non-OECD countries and a rebound in OECD economies. This positive momentum could drive global oil demand beyond current expectations into 2025.
Furthermore, global oil demand is set to reach a record <a href="https://www.reuters.com/business/energy/us-eia-lifts-oil-demand-forecast-says-prices-will-recover-above-80bbl-2024-09-10/">103.10 million barrels per day</a> in 2024, with oil prices projected to rise above $80 per barrel due to a growing supply deficit. Given this backdrop, let's evaluate the three <a href="https://stocknews.com/category/energy-equities-etfs/">Energy Equities ETFs</a> picks, starting with number three.
ETF #3: iShares Global Energy ETF (<a href="https://stocknews.com/stock/IXC/">IXC</a>)
IXC is an exchange-traded fund launched by BlackRock, Inc. It is managed by BlackRock Fund Advisors. The fund invests in the public equity markets of the global region. It invests in stocks of companies operating across the energy sectors, focusing on growth and value stocks of large-cap companies. It seeks to track the performance of the S&amp;P Global 1200 Energy 4.5/22.5/45 Capped Index using a representative sampling technique.
With $1.99 billion in assets under management (AUM), IXC's top holding is Exxon Mobil Corporation (<a href="https://stocknews.com/stock/XOM/">XOM</a>) with an 18.83% weighting, followed by Chevron Corporation (<a href="https://stocknews.com/stock/CVX/">CVX</a>), with a 9.04% weighting, and Shell Plc (<a href="https://stocknews.com/stock/SHEL/">SHEL</a>), with 8.01%. It has a total of 53 holdings.
It has an expense ratio of 0.41%, lower than the category average of 0.47%. It currently has a <a href="https://www.investopedia.com/terms/n/nav.asp">NAV</a> of $39.48. IXC's fund outflows were $1.05 billion over the past six months.
The fund's annual dividend of $1.53 yields 3.89% on the current share price. Its four-year average yield is 4.68%. Moreover, its dividend payouts have increased at a CAGR of 14.5% over the past three years and 4.8% over the past five years.
IXC has gained 2.2% year-to-date but declined 4.4% over the past year, closing the last trading session at $39.94.
IXC's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this uncertain outlook. The ETF's overall C rating equates to a Neutral in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
IXC has a C grade for Peer and Trade. Of the 46 ETFs in the <a href="https://stocknews.com/category/energy-equities-etfs/">Energy Equities ETFs</a> group, it is ranked #17. <a href="https://stocknews.com/stock/IXC/">Click here</a> to access all of IXC's POWR Ratings.
ETF #2: Vanguard Energy Index Fund ETF Shares (<a href="https://stocknews.com/stock/VDE/">VDE</a>)
VDE is an exchange-traded fund launched and managed by The Vanguard Group, Inc. The fund invests in the public equity markets, focusing on stocks of companies operating across the energy sectors. It invests in growth and value stocks of companies with diversified market capitalizations. The fund seeks to track the performance of the MSCI US Investable Market Index (IMI)/Energy 25/50 using a full replication technique.
With $7.58 billion in AUM, the fund has a total of 114 holdings. VDE's top holding is XOM with a 22.56% weighting, followed by CVX with a 13.58% weighting, and ConocoPhillips (<a href="https://stocknews.com/stock/COP/">COP</a>) with 6.66%.
VDE has an expense ratio of 0.10%, lower than the category average of 0.47%. It currently has a NAV of $119.25. Its fund outflows came in at $402.08 million over the past year.
VDE's annual dividend of $3.83 yields 3.21% on the current share price. Its four-year average yield is 3.65%. Likewise, the fund's dividend payouts have increased at a CAGR of 15.3% over the past three years and 7.3% over the past five years.
VDE has gained 3% year-to-date; however, it declined 5.3% over the past six months, closing the last trading session at $120.84.
VDE's bleak fundamentals are reflected in its POWR Ratings. The ETF has an overall rating of C, translating to a Neutral in our proprietary rating system.
It has a C grade for Peer and Trade. It is ranked #15 in the same group. To access all the POWR Ratings for VDE, <a href="https://stocknews.com/stock/VDE/">click here</a>.
ETF #1: The Energy Select Sector SPDR Fund (<a href="https://stocknews.com/stock/XLE/">XLE</a>)
XLE is an exchange-traded fund launched by State Street Global Advisors, Inc., and managed by SSGA Funds Management, Inc. It invests in the public equity markets of the United States, focusing on stocks of companies operating across the energy sectors. The fund targets growth and value stocks of companies with diversified market capitalizations. It seeks to track the performance of the Energy Select Sector Index using a full replication technique.
With $33.5 billion in assets under management (AUM), XLE's top holding is XOM with a 23.84% weighting, followed by CVX, with a 16.89% weighting, and EOG Resources, Inc. (<a href="https://stocknews.com/stock/EOG/">EOG</a>), with 6.24%. XLE has a total of 24 holdings.
XLE has an expense ratio of 0.09%, higher than the category average of 0.47%. It currently has a NAV of $85.58. Its fund outflows came in at $1.48 billion over the past year.
The ETF pays an annual dividend of $2.92, which yields 3.38% on the current price. It has a four-year average dividend yield of 4.33%. Also, XLE's dividend payouts have increased at a CAGR of 11.4% over the past three years and 6.5% over the past five years.
XLE has gained 3.3% year-to-date and declined 5.5% over the past six months, closing the last trading session at $86.57.
XLE's POWR Ratings reflect its mixed prospects. The ETF's overall A rating equates to a Strong Buy in our proprietary rating system.
XLE has a C grade for Peer and Trade. In the Energy Equities ETFs group, it is ranked #14. <a href="https://stocknews.com/stock/XLE/">Click here</a> to access all of XLE's POWR Ratings.
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XLE shares were trading at $87.46 per share on Tuesday afternoon, up $0.89 (+1.03%). Year-to-date, XLE has gained 6.01%, versus a 18.98% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/xle-vde-ixc-3-top-energy-etfs-to-watch-as-oil-prices-rise/>3 Top Energy ETFs to Watch as Oil Prices Rise</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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SPDR Select Sector Fund - Energy Select Sector

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