Here’s how you can lose $200 billion in one day and more in Monday’s Closing Bell on Money and Markets.
Global markets have been up and down since the start of 2020, but Saudi Aramco has gone in one direction since its initial public offering launch in late 2019 — down.
Saudi Arabia’s state-owned oil company has dropped nearly 10% Monday — shedding nearly $200 billion in valuation since going public less than a month ago, according to CNN Business.
It comes as Brent crude and West Texas crude oil prices continue to rise amid tension between the U.S. and Iran following the assassination of an Iranian general by an American drone in Iraq.
The stock price is taking a hit as investors continue to be wary of the potential of Iranian retaliation and other geopolitical issues.
Money and Markets: Closing Bell
S&P 500: 3,246 (+11 points, +0.3%)
DOW: 28,703 (+68 points, +0.2%)
NASDAQ: 9,071 (+50 points, +0.5%)
GOLD: $1,566* (+13.70, +0.8%)
BITCOIN: $7,548.28* (+1.6%)
U.S. 10-YEAR YIELD: 1.80%
*as of 4:10 p.m. EST
A Big Win
If you read this morning’s Wall Street Wake-Up, you’ll remember SmileDirectClub Inc. (Nasdaq: SDC) was listed as a stock to watch today.
Well, if you paid attention, you’ll also know the stock gained nearly 25% in Monday afternoon trading after the company announced it was creating a line of oral care products for exclusive sale at Walmart Stores (NYSE: WMT).
M&A News
Yum Brands Inc. (NYSE: YUM) is planning to buy Habit Restaurants Inc. (Nasdaq: HABT) for $375 million. Yum owns KFC, Taco Bell and Pizza Hut brands while Habit operates nearly 300 restaurants specializing in burgers, grilled chicken and tuna sandwiches. Shares of Yum were down 0.25% while HABT jumped 32% Monday.
Xerox Corp. (NYSE: XRX) announced it secured $24 billion in funding for its $33.5 billion proposed buyout of HP Inc. (NYSE: HPQ). Shares of HPQ were up 0.6% while XRX was down 1.7% in midday trading Monday.
News Corp. (Nasdaq: NWSA) is selling a large portion of video advertising company Unruly to Tremor International. News Corp. will retain a minority stake in the company, according to Reuters.
Golden Nuggets
A report from Goldman Sachs called gold “a better hedge than oil” as tensions between the U.S. and Iran continue to grow, as reported by Kitco News.
Gold prices were up to around $1,566 an ounce in Monday afternoon trading — a 0.9% increase. Earlier in the day, Brent crude oil was up $68.88 a barrel — a 0.4% increase.
“While tensions in the Middle East have undeniably escalated with Iran reportedly committing to retaliating, we believe that the current risk premium embedded in Brent prices (through time spreads) is already elevated, with an actual supply disruption now necessary to sustain oil prices near current levels of $69/bbl (barrel),” Goldman said in a research report on Monday.
Gold jumped to $1,567 an ounce in afternoon trading Monday. It had reached a seven-year high of $1,577 an ounce earlier in the day.
Cannabis Corner
As cannabis financing continues to be scare, some large companies are selling their own cultivation, processing and storage facilities and leasing them back to raise millions of dollars in capital, according to a report in Marijuana Business Daily.
One of the biggest players in these leasebacks is Innovative Industrial Properties (NYSE: IIPR) an exchange-traded fund, or ETF, specializing in cannabis-related real estate.
The portfolio has properties in Arizona, California, Colorado, Florida, Illinois, Maryland, Michigan, Minnesota, New York, Nevada, Ohio and Pennsylvania.
Stock Market Update
In the morning, U.S. markets were lower as investors continued to be concerned over tensions between the U.S. and Iran.
However, markets regained some momentum in the afternoon.
The S&P 500 index jumped 0.3%. The Dow Jones Industrial Average climbed 68 points, or 0.2%, to 28,703. It recovered from a 200-point loss to start the day. The Nasdaq rose 0.5%.
Today’s Big Winners:
(as of 3:15 p.m. EST)
Abiomed Inc. (Nasdaq: ABMD) +6.7%
EOG Resources Inc. (NYSE: EOG) +4.8%
Salesforce.Com Inc. (NYSE: CRM) +4.2%
Netflix Inc. (Nasdaq: NFLX) +2.5%
Exxon Mobil Corp. (NYSE: XOM) +1.3%
Today’s Big Losers:
(as of 3:15 p.m. EST)
Under Armour Inc. (NYSE: UA) -5%
Applied Materials Inc. (Nasdaq: AMAT) -2.3%
Western Digital Corp. (Nasdaq: WDC) -2.2%
L Brands Inc. (NYSE: LB) -3.8%
J.B. Hunt Transport Services Inc. (Nasdaq: JBHT) -1.9%
Check back for the most important news and numbers each day after the Closing Bell, only on Money and Markets.
Don’t forget about “Marijuana Markets: a POTcast,” featuring the biggest cannabis news and investment notes from Banyan Hill’s Anthony Planas, here on Money and Markets each Saturday morning.