What's moving markets today: April 26, 2019

By CNN Business

Updated 4:56 p.m. ET, April 26, 2019
15 Posts
Sort byDropdown arrow
4:06 p.m. ET, April 26, 2019

Chevron's production jumps, powered by surging US shale

From CNN Business' Matt Egan

Oil giant Chevron grew its production by 7% in the first quarter, thanks in large part to Texas' Permian Basin.

The No. 2 US oil company reported first-quarter earnings that beat expectations. But profit was down 27% due to "weaker" refinery operations.

Chevron's (CVX) revenue dipped 7%, trailing Wall Street's view.

Meanwhile, Chevron expressed confidence about its takeover deal for Anadarko Petroleum (APC) -- despite the bidding war that has emerged over the oil driller.

However, Chevron did not sweeten its offer for Anadarko despite the fact it has been outbid by Occidental Petroleum (OXY).

Executives instead talked up why they believe Anadarko would be a better fit with Chevron than Occidental. They pointed to Chevron's track record of integrating new companies and the fact that it's a "world-class" operator of LNG.

Chevron did concede that the deal terms could theoretically change. While Occidental offered to pay 50/50 in cash and stock, Chevron's deal is more weighted towards stock.

"Clearly we have the capacity to have alternative structures," Chevron chief financial officer Pierre Breber said. "We could have put more cash in if that's what Anadarko wanted to do, but we agreed to where we ended up."

11:44 a.m. ET, April 26, 2019

Oil tumbles after Trump said he called OPEC to bring prices down

From CNN Business' Anneken Tappe

US oil futures dropped 3.9% this morning following reports that President Donald Trump said he called the Organization of Petroleum Exporting Countries (OPEC) to bring down prices.

US oil futures were last at at $62.65 per barrel. Brent crude futures were down 3.3% at $71.90 per barrel.

It has been a volatile week for oil prices. On Monday, prices rallied after the Unites States said it would no longer grant sanctions exemptions to countries buying oil from Iran. This affects China, India, South Korea, Japan and Turkey.

On the week, US prices are down 2%, according to Refinitiv.

10:04 a.m. ET, April 26, 2019

Stocks open slightly lower

From CNN Business' Anneken Tappe

US stocks edged lower at the start of Friday trading as investors digested a stronger-than-expected first quarter GDP growth print.

  • The Dow opened 0.1%, or 31 points, lower.
  • The S&P 500 was down 0.1%
  • The Nasdaq was down 0.4%.

Companies that reported before the bell included Exxon Mobil (XOM), which posted an unexpected profit drop. Its shares fell 2.4%

Intel (INTC) shares were also lower, falling 8.7%, after the chip maker slashed its full-year guidance.

9:46 a.m. ET, April 26, 2019

Slack files to go public with an unusual approach

From CNN Business' Seth Fiegerman and Sara Ashley O'Brien

Slack is the latest company planning to go public, but it's doing so with an unconventional approach.

The workplace messaging service filed paperwork on Friday to go public through a direct listing, the same method used by Spotify (SPOT). Slack will list shares directly on a stock exchange without relying on underwriters to help assess demand and set a price.

The downside of this approach is thought to be that the stock may suffer more volatile trading. But Spotify largely disproved this with relative stability in its first days on the market.

Slack expects to trade on the New York Stock Exchange under the stock ticker "SK."

Read the full story about Slack's path to the stock market here.

9:40 a.m. ET, April 26, 2019

Tesla really wants those electric vehicle tax breaks back

From CNN Business' Jordan Valinsky

A new regulatory filing from Tesla (TSLA) reveals that it's hired a law firm to lobby for a new bill that would expand federal tax credits for electric car buyers.

The current law lets buyers receive a $7,500 tax credit, but it phases out after an automaker sells 200,000 vehicles.

Tesla was first to hit the cap last year, and responded by cutting the price of its cars by $2,000.

The proposed legislation, called "Driving America Forward Act," would raise the cap, so that another 400,000 vehicles sold by each manufacturer will be eligible for a $7,000 tax credit.

8:58 a.m. ET, April 26, 2019

US economy posts strong gains in the first quarter

From CNN Business' Lydia DePillis

The economy grew at a much better than expected rate in the first quarter, the Commerce Department reported Friday, accelerating out of a slow start to the year.

The Bureau of Economic Analysis reported that gross domestic product grew at a rate of 3.2%, substantially above the projected 2.1%, buoyed by strong state and local government spending, consumer spending, and business investment.

Read the full story on the buoyant first quarter GDP reading here.

8:54 a.m. ET, April 26, 2019

Stock futures climb after first quarter GDP numbers

From CNN Business' Anneken Tappe

US stock futures bounced higher after the first quarter GDP report showed the US economy expanded 3.2% in the first quarter, more than expected.

Consensus forecasts had projected 2% of GDP growth, according to Refinitiv.

With a little less than an hour to go until the market opens, futures for the Dow, S&P 500 and Nasdaq Composite were all pointing higher, with the Nasdaq leading the pack.

8:19 a.m. ET, April 26, 2019

Exxon's profit unexpectedly tumbles 49% despite booming shale oil output

From CNN Business' Matt Egan

ExxonMobil, the king of the surging oil industry, is not firing on all cylinders.

The world's largest public oil company suffered a 49% drop in first-quarter profit despite booming shale oil production. Exxon's (XOM) per-share profit of 55 cents badly missed the Street's view of 70 cents.

Blame Exxon's vast refinery business. The company swung to a downstream loss of $256 million due to higher scheduled maintenance and lower margins. Exxon also blamed swings in Canadian oil prices.

Wall Street penalized Exxon, sending its stock 2% lower in premarket trading Friday.

The good news is that Exxon's oil and gas production continues to recover from a yearslong slump.

Exxon reported a 2% increase in oil-equivalent output. Upstream liquids production jumped 5% -- led by a spike of nearly 140% from the Permian Basin. Exxon was late to the US shale boom but has since played catch-up by focusing on the Permian, the West Texas shale hotbed.

But that growth doesn't come cheap. Exxon's capital and exploration spending surged 42% in the first quarter, countering the industrywide trend toward capital discipline.

9:36 a.m. ET, April 26, 2019

American Airlines has a $1 billion problem

From CNN Business' Jordan Valinsky

The grounding of its Boeing 737 Max fleet and rising oil prices will cost American Airlines (AAL) nearly $1 billion dollars.

"We presently estimate the grounding of the 737 MAX will impact our 2019 pre-tax earnings by approximately $350 million. With the recent run-up in oil prices, fuel expenses for the year are also expected to be approximately $650 million higher than we forecast just three months ago," the airline said in a release.

These troubles forced the airline to cut its full-year earnings forecast. It did turn a first-quarter profit.

American's shares are down 2% in early trading.