Dow Jones Adds 79 Points As Chevron Rises On Soaring Oil Prices, Walgreens Falls On Profits
The Dow Jones Industrial Average (DJINDICES: ^ DJI) added 79 points at 2:23 p.m. EDT on July 1, making modest gains of Chevron (NYSE: CVX) as the global oil market continues to improve, and Nike (NYSE: NKE) following the release of its “Rawdacious” product line ahead of the Tokyo 2020 Olympic Games. In a day of modest gains for the majority of the 30 stocks of the Dow Jones, Alliance of Walgreens boots (NASDAQ: WBA) shares are down nearly 6% after the company announced its earnings before the market opened today.
Let’s take a closer look at today’s biggest Dow stock stories that investors need to know.
OPEC + crude oil deal boosts Chevron’s outlook
Crude oil prices are on the rise today, with Brent and West Texas Intermediate futures trading above $ 75 a barrel after news that OPEC +, the consortium of oil producers oil which includes global giants Saudi Arabia and Russia, had reached a preliminary agreement to increase oil production. of 2 million barrels per day gradually during the second half of 2021.
As a result, West Texas crude oil prices are now at their highest level in over six years, while Brent, if recent prices hold, would be at its highest sustained price. since crude prices were over $ 100 in 2014:
For Chevron, it’s not just the higher sustained prices that are driving its share price higher – it’s all about improvements to the underlying request for oil as more of the world begins to shift into a post-coronavirus environment. Trade and transport activity has increased, leading to a sharp increase in global demand for oil in the past year. And although it is still below 2019 levels, so far the global oil giants have remained disciplined in their oil production, pushing prices higher and improving the outlook for Chevron and its peers.
Nike announces new lineup ahead of Summer Olympics
Image source: Nike.
The king of footwear and athletic wear launched its all-new product line on July 1, the “Rawdacious” color palette of running shoes for the Tokyo games. Extract from the company’s press release:
“Color has the nuanced ability to invite both reaction and reflection,” says Martha Moore, Nike vice president, Central Color Product Design. “You see a color and you immediately react in a certain way. Color can also open the door to history, to connections to other disciplines and to memory. In creating this year’s palette, we made an effort to consider color holistically in order to best represent a moment in time. ‘
Nike plans to launch performance and lifestyle products featuring the Rawdacious colourway on the company’s e-commerce website “throughout the summer.”
Walgreens profit forecast pushes stock price down
Pharmaceutical giant Walgreens Boots Alliance released its third quarter tax results ahead of the market opening on July 1, reversing last year’s losses with earnings of $ 1.38 per share, ahead of expectations investors. Revenue increased 12.1% to $ 34 billion, also exceeding expectations.
So why the clearance sale? This is most likely based on management advice COVID-19 vaccine revenue expectations, which should have already peaked in the United States, its largest market. As a result, the company expects the rate of earnings growth to slow on a sequential basis as it derives less profit from vaccine administration than the direction initially anticipated earlier in the rollout. Sales of PPE, personal protective equipment, including masks and gloves, are also expected to decline from the previous year quarter.
Even with today’s sale, Walgreens shares are still up over 24% so it’s possible that part of the sale is just the usual “sell news” business. business that intensifies during the earnings season. Ironically, Walgreens in fact increases its full-year profit forecast, despite lower expectations for coronavirus-related revenue.
Longer term, Walgreens management continues to focus on key healthcare trends including digital health, healthcare plans and meeting the healthcare needs of a growing population of seniors.
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