Stocks Moving Premarket: Exxon Mobil, Halliburton, Shake Shack - Barron's

It’s turning out to be a rocky Monday.

All three of the major U.S. stock indexes are down as investors wait to hear a fresh crop of companies report their first-quarter results this week, providing a glimpse into how their financial fared as the coronavirus pandemic shut down large swaths of the economy.

Shortly after the open, the Dow Jones Industrial Average was off 413 points, or 1.7%, while S&P 500 was down 1.3% following a rally Friday in response to indications that a Gilead Sciences drug could help virus-hit patients. The Nasdaq Composite was down 0.7%.

“The bottom-up news may dominate now, with the focus more on company statements than the reported numbers,” said Ian Williams, economics & strategy research analyst at Peel Hunt in London.

Most Asian markets retreated, with the Nikkei 225 ending 1.2% lower in Tokyo and the Kospi Composite losing 0.9% in Seoul. The Shanghai Composite, however, rose 0.5% as the People’s Bank of China cut the one-year lending rate by 20 basis points.

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After rising 7.9% over the last two weeks, the Stoxx Europe 600 was down by 0.5%.

Oil prices plunged, with the price of West Texas Intermediate crude for May delivery falling 35%, to $11.91 on weakened demand and concern about a lack of storage space in the U.S. The May contract is set to expire Tuesday.

Brent crude, the international price benchmark, was off 6.2% at $26.35.

The drop in oil caused shares of Exxon Mobil (XOM) to fall 3.1%, while Chevron (CVX) and Occidental Petroleum (OXY) shares were down 3.7% and 7.1%, respectively.

Halliburton (HAL), an oil-field-services provider, saw its shares fall 1.4% even after beating quarterly estimates on the top and bottom line after warning that activity will continue to plunge in the second quarter.

Other companies making moves premarket include Shake Shack (SHAK), which saw shares dip 1.4% after announcing that it will return a $10 million loan it received under the Cares Act after it—and other large restaurant chains—faced criticism for taking loans intended for small businesses. Shake Shack said it was able to raise $150 million in an equity offering.

Wynn Resorts (WYNN) shares dropped 1% after chief executive Matt Maddox called for reopening the Las Vegas Strip in mid-May, while also providing a 23-page plan for safely doing so.

Discussions about reopening the U.S. economy continue, with a key question being the lack of testing conducted so far. At the same time, lawmakers are seeking to provide relief for businesses and individuals hurt by shutdowns put in place to slow the virus’s spread. Lawmakers said over the weekend they are close to a deal to add more cash to the Cares Act fund for small-business loans, which ran out of money last week.

Europe’s slow and relatively uncoordinated reopening continues, with Germany on Monday allowing small shops to take in customers.

Write to Carleton English at carleton.english@dowjones.com

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https://www.barrons.com/articles/stocks-moving-premarket-exxon-mobil-halliburton-shake-shack-51587385847

2020-04-20 13:21:00Z
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