Goldman Sachs sees OPEC+ unlikely to raise production
Dow rises for 7th straight day; rate cut hope buoyed
The Dow Jones Industrial Average closed higher on Thursday, the seventh straight daily advance for the benchmark, as all three major U.S. indexes gained after weekly jobless claims data offered fresh hope for interest-rate cuts.
U.S. Federal Reserve policy has been the main driver of investor sentiment in 2024. Renewed hopes the central bank will cut rates have pushed the Dow to its biggest rally since December. It closed at its highest since April 1.
Other benchmarks also benefited. After a flat day on Wednesday, the S&P 500 resumed its upward trajectory and closed above 5,200 points for the first time since April 9.
The number of Americans filing new claims for unemployment benefits increased more than expected to a seasonally adjusted 231,000 last week, data showed. Economists polled by Reuters had forecast 215,000 claims.
The S&P 500 gained 26.41 points, or 0.51%, to 5,214.08 points, while the Nasdaq Composite gained 43.51 points, or 0.27%, to 16,346.27. The Dow Jones Industrial Average rose 331.37 points, or 0.85%, to 39,387.76.
Average 30-year fixed-rate mortgage falls to 7.09%
U.S. mortgage rates fell this week for the first time in more than a month.
The average rate on the popular 30year fixed-rate mortgage was down to 7.09% as of May 9, from 7.22% last week, ending five straight weekly increases, mortgage finance agency Freddie Mac said in a statement on Thursday. It averaged 6.35% during the same period a year ago.
The average rate on the 15-year fixedrate mortgage fell to 6.38% from 6.47% last week. That’s compared to an average of 5.75% a year ago.
Novo Nordisk teams with Metaphore on new obesity drugs
Novo Nordisk signed a research tie-up with U.S. biotech firm Metaphore on Thursday to develop next-generation obesity drugs.
Danish drugmaker Novo is trying to expand beyond its blockbuster obesity drug Wegovy with at least eight other treatments in its research and development pipeline for the condition.
The collaboration will use Metaphore’s tech platform to develop two therapies for obesity, the companies said.
Novo in January announced research collaborations with two biotech firms, Omega Therapeutics and Cellarity, both of which were founded by U.S. investment firm Flagship Pioneering.
Metaphore was also founded by Flagship.
The global market for weight-loss drugs is expected to reach at least $100 billion by the end of the decade.
Disney, Warner Bros. to offer streaming bundle this summer
Walt Disney and Warner Bros. Discovery will offer a bundle of the Disney+, Hulu and Max streaming services in the United States starting this summer, the companies said in a statement on Wednesday.
Customers will be able to sign up on any of the three individual websites and chose from an ad-free or ad-supported plan. No prices were disclosed.
Both companies are trying to build their streaming businesses as customers ditch traditional cable.
Disney+ offers the company’s animated and live-action movies plus film and TV shows from Marvel, Star Wars and Pixar. Hulu features series from FX, ABC and other networks as well as movies.
Warner Bros.’ Max is home to premium channel HBO as well as HGTV, the Food Network, the Discovery channel and other cable networks.
Goldman Sachs on Wednesday said it no longer expects OPEC+ to announce a partial unwind of voluntary production cuts in June.
The bank said inventories have recently surprised to the upside, and as a result, its model now estimates only a 37% chance of a production increase decision in June.
“While our interpretation of OPEC+ communication is that no final decision has been made, we now expect Saudi crude supply to remain flat at 9 mb/d (million barrels per day) in July (vs. 9.2 previously),” the Wall Street bank added.
Goldman still expects Brent crude futures to remain in a range of $75 to $90 a barrel in most scenarios and forecasts they will average $82 in 2025, it said in a note.
Russian Deputy Prime Minister Alexander Novak said on Tuesday that there had been no discussions about an oil output increase by OPEC+.
Japan’s Mitsui plans 150-megawatt solar plant in Texas
Japanese trading house Mitsui plans to develop a 150-megawatt solar power plant in Texas, it said on Thursday, continuing its overseas business expansion and adding more carbon-neutral businesses to its portfolio.
Mitsui said the commercial operation of the plant is scheduled for 2026 with investment of around $192 million. The power will be supplied to the wholesale market and industrial clients of Mitsui in the U.S.
Insurers deny Chevron’s $57M claim for Iran oil seizure
Three insurance companies have rejected Chevron’s claim over the seizure last year of an oil cargo ship by Iran, according to a complaint filed Tuesday in a court in California.
The Chevron-chartered tanker Advantage Sweet was boarded by the Iranian military in the Gulf of Oman in April 2023 and its crude oil cargo confiscated and later transferred to an Iranian vessel.
Zurich American Insurance, Liberty Mutual Insurance and Great American Insurance asked a U.S. District Court in San Francisco to uphold their rejection of Chevron’s $57 million claim that includes interest on the loss.
The oil seizure was not covered under either Chevron’s marine cargo or war risks policies, the trio said in their complaint.
Chevron did not immediately reply to a request for comment.
LyondellBasell weighs strategic options for European assets
LyondellBasell said on Wednesday it has launched a strategic review of the European assets of two of its business units.
The review is for the petrochemical manufacturer’s olefins and polyolefins unit and intermediates and derivatives division.
“At the 2023 Capital Markets Day, we stated our intent to concentrate our portfolio around businesses with long-lasting competitive advantage and to reinvest around those advantaged areas generating superior returns at meaningful scale,” said Peter Vanacker, CEO of LyondellBasell.
“These criteria have not changed.” The company said last year it was exploring strategic options for its U.S. Gulf Coast-based ethylene oxide and derivatives business.
In December, it had agreed to sell its Bayport, Texas, ethylene oxide unit and associated business to chemical maker INEOS Oxide for $700 million.
Software company BigCommerce explores sale, sources say
BigCommerce, the e-commerce software maker that used to be backed by SoftBank Group, is exploring a sale after attracting takeover interest, people familiar with the matter said on Tuesday.
BigCommerce has become an acquisition target after losing 90% of its market value in the four years since its initial public offering. It has struggled to compete against larger rival Shopify.
The Austin, Texas-based company has asked investment bank Qatalyst Partners to solicit interest from potential buyers that include private equity firms, the sources said.
The discussions are at an early stage, and no deal is certain, the sources added, requesting anonymity because the matter is confidential.
Spokespeople for BigCommerce and Qatalyst did not respond to requests for comment.