Coffee With Greta: Second Quarter Kicks Off
DJIA Futures: +107 (+0.3%)
SPX Futures: -8 (-0.2%)
NASDAQ Futures: -119 (-0.9%)
Good morning friends!
Futures are mixed as oil prices surge and Q2 begins.
Let’s get right to it!
Oil Prices Surge After Surprise OPEC+ Production Cuts
Oil prices are surging this morning after OPEC+ announced it was cutting output by 1.16 million barrels per day over the weekend.
West Texas Intermediate crude futures are up 6.1% to over $80 bbl while Brent crude futures are up 6.1% to just under $85 bbl.
The cuts will start in May until the end of 2023 and Saudi Arabia called it a “precautionary measure” targeted at stabilizing the oil market.
Analysts are warning oil may hit $100 bbl again due to the cuts as China reopens, Russia has cut its output, and demand is higher in the summer months ahead.
WWE, UFC Agree On Merger
World Wrestling Entertainment (WWE) shares are falling 6.3% in premarket trade after agreeing to merge with UFC.
The merger will create a new publicly traded company controlled by Endeavor Group (EDR).
EDR shares are up 3.9% ahead of the open.
Endeavor will own a 51% stake in the new company and WWE shareholders will own the remaining 49%.
The deal values WWE at $9.3 billion and UFC at $12.1 billion.
The name of the new company will be announced at a later date.
Tesla Q1 Deliveries
Tesla (TSLA) shares are slipping 3.6% ahead of the open after the company reported Q1 deliveries and production numbers over the weekend.
On Sunday, the electric automaker reported it delivered 422,875 vehicles last quarter and produced 440,808.
That was a 36% year over year increase in deliveries and up 4% from Q4 2022.
But it was short of analysts’ average estimate for 432,000 deliveries.
Tesla delivered 10,965 of the higher-priced Model S and Model X vehicles and 412,180 of the lower-priced Model 3 and Model Y.
McDonald’s Expected To Announce Corporate Layoffs
McDonald’s (MCD) shares are up 0.4% in premarket trade following reports the company is temporarily closing its U.S. offices this week and preparing to announce corporate layoffs.
The Wall Street Journal reported that McDonald’s asked employees to work from home Monday through Wednesday this week so it can deliver staffing decisions virtually.
In a memo, McDonald’s said, “During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization.”
In Case You Missed It
- Consumer sentiment dropped more than expected at the end of March, hitting a 3-month low on Friday. The index dropped to 62 from the flash reading of 63.4. Sentiment about current economic conditions fell more than 4 points to 66.3, while the 6-month expectations index dropped more than 2 points to 59.2. But inflation expectations improved. Consumers expect inflation to be at 3.6% 1-year from now, down from 4.1% in in February.