Good morning contrarians! It is Monday, April 3.
The Organization of the Petroleum Exporting Countries yesterday surprised markets with an output cut, which means fewer supplies, which has caused oil prices to spike upward.
State of Play
There isn’t much on the calendar today. A second reading of manufacturing PMIs is about it. As of 0635 most of the action is in commodities after OPEC:
WTI crude oil is up 5% to trade close to $80/barrel as natural gas prices decline by 7%;
Oil stocks are moving higher with Marathon Oil (MRO 0.00%↑), Halliburton (HAL 0.00%↑), APA Corp (APA 0.00%↑), and Devon Energy (DVN 0.00%↑) the big winners among S&P 500 stocks.
Stock index futures are mixed, with the S&P 500 flat, Nasdaq down 0.6% and Russell 2000 which tracks small caps up 0.4%;
Bonds are unchanged. The 2-year yield is 4.08%. The 10-year 3.51%.
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