Oil prices dipped on Thursday after a report that Saudi Arabia’s oil output could soon surpass 10 million barrels per day for the first time since the start of the COVID-19 outbreak, reversing earlier gains in a stormy day.
The report came after Saudi Arabia, together with other members of the Organization of Petroleum Exporting Countries and their allies, agreed to keep to previously agreed-upon production increases.
Brent crude slid $1.45, or 1.8 %, to $80.54 a barrel at the close. Brent had previously risen to $84.49 per barrel. WTI crude in the United States declined $2.05, or 2.5 %, to close at $78.81 a barrel, well below the session high of $83.42.
Brent and WTI have both dropped roughly 5% and 6% from Tuesday’s closing, respectively. The recent upward momentum from the August swing low appears to be stalling.
Gold Trends Higher and Close to a Breakout
Gold prices edged higher on Thursday, after hitting a three-week low the previous day, as investors reacted positively to the US Federal Reserve’s intention to reduce stimulus without raising interest rates for the time being.
After hitting a low of $1,771.87 per ounce on Wednesday, spot gold climbed 0.1 % to $1,771.87 per ounce by 0612 GMT. Gold futures in the United States rose 0.6 % to $1,773.70.
In November, the Fed declared that it will start lowering its monthly asset buying to halt them by the middle of 2022. Given the Fed’s assumption that inflation will remain low until approximately mid-2022, and some signs of total employment in the labor market, such as wage growth, it won’t take long for the Fed to start tapering, putting downward pressure on gold.
Nevertheless, the central bank stated that it will not raise interest rates until more employment growth is evident, citing its view that inflation would be “transitional.”
Meanwhile, the Fed’s attitude puts gold in a favorable position to increase, at least until the central bank eventually starts hiking rates. Swing traders will know the forty-day high of the front-month contract is at around 1835.
Bed Bath & Beyond Surprises
Bed Bath & Beyond (BBBY) stock jumped 15.2 % after the store announced a grocery chain Kroger KR deal late Tuesday. The famous meme stock also announced that it was ahead of plan with its share repurchases.
The stock of Bed Bath & Beyond has soared more than 50% during trade Wednesday, following a flurry of positive announcements. This includes the introduction of a digital marketplace, an association with the grocery chain Kroger, and a $1 billion share buyback program that is far ahead of schedule.
Bed Bath & Beyond’s stock plummeted after the company reported disappointing earnings in September. This is due to a reduction in customer traffic and supply chain problems, driving investors to the lowest share price of the year. However, the recovery appeared to be equally as quick as the fall. Shares finished at $19.30 on Wednesday, up to $2.55, or approximately 15%, on the day.
Zillow Group Inc. Z ZG shares dropped 21.6 % after the real estate giant shut down its home-flipping business late Tuesday and said it expects losses of more than $550 million on homes bought in the second half of this year, for which it acknowledges it overpaid.
Since February, Zillow’s stock has lost two-thirds of its value as the company’s new home-buying operation has become a money-losing albatross.
On Wednesday, Zillow stock fell 25% after the company announced plans to abandon the home-flipping business. This is due to its inability to estimate property prices accurately.
Zillow, which was once a big winner, has dropped two-thirds of its value since February due to its prime location in the raging house market. It is now trading at its lowest level in 16 months. The stock sank $21.63 to $65.57 at the closing.
While its primary internet marketplace continues to develop and generate revenue, Zillow announced a net loss of almost $328 million for the third quarter on Thursday. This was entirely due to its instant buying, or iBuying, unit.
Activision Blizzard’s ATVI stock fell 14.1 % after the videogame publisher’s earnings beat was overshadowed by a weaker-than-anticipated outlook and the planned delay of two games.
Lyft Inc. is a transportation company that operates in the United States. LYFT stock jumped 8.2 % after the ride-hailing company reported a revenue increase of 73 % year over year.
The New York Times Co. saw its stock drop 9.6% after the media group topped earnings expectations and provided bullish guidance.
CVS Health Corp. is a healthcare company. With adjusted quarterly earnings of $1.97 per share and revenue above Wall Street predictions, CVS exceeded estimates by 19 cents. Increased demand for Covid tests and immunizations boosted the drugstore chain and pharmacy-benefits management. The stock increased by 5.7 %.
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