Energy stocks are primed to shoot out of the blocks this morning as OPEC and other oil powers arrived at a deal to cut output. Oil prices jumped by more than 6% to hit 18-month highs on news that Russia and others would pull back on output by 558,000 barrels per day.
That makes Exxon Mobil Corporation (NYSE:XOM) among stocks to watch today. Also oozing over from the weekend is news from Boeing Co (NYSE:BA) and Facebook Inc (NASDAQ:FB).
Here’s what you should know heading into Monday’s trade:
Exxon Mobil Corporation (XOM)
XOM shares are up about 2% this morning, largely stoked by the new OPEC deal.
And it’s hardly alone.
Energy giants like Chevron Corporation (NYSE:CVX) and BP plc (ADR) (NYSE:BP) are up similarly this morning, and more battered outfits such as Chesapeake Energy Corporation (NYSE:CHK) are rising more aggressively. CHK specifically is up 6% in premarket action.
In addition to the OPEC deal, “Saudi Energy Minister Khalid Al-Falih said Saturday the biggest crude exporter will ‘cut substantially to be below’ the target agreed last month with members of OPEC,” Bloomberg reported.
Sanford C. Bernstein analyst Neil Beveridge says if the involved countries are actually reasonably compliant, “These cuts will be enough to push the (oil) market into deficit.”
As far as XOM stock goes, shares continue to head higher after a late-November bounce off their major moving averages. The stock was already close to pulling off a golden cross, and today’s move might be enough to do the trick. At the open, XOM should be another 4% to 5% off year-to-date highs set around $49 back in July.
Boeing Co (BA)
Boeing inked a major aircraft deal with Iran Air over the weekend. But BA shares aren’t getting much lift, as it remains to be seen whether the deal will be allowed to stand.
The aerospace manufacturing equipment company has received governmental approval to stock Iran Air with aircraft. Boeing will supply Iran Air with 80 jetliners as part of the $16.6 billion agreement.
The move marks the largest deal completed by a U.S. company with Iran since President Barack Obama lifted trade sanctions between the two nations.
However, Boeing is failing to take off because it’s unclear whether Congress and/or the White House will oppose it. “Last month, the House of Representatives approved a bill that would prevent the Treasury Department from giving U.S. banks the licenses to help Boeing complete the transactions,” USA Today reported.
BA shares are off less than 1% this morning.
Facebook Inc (FB)
Facebook has added a feature that will filter out hoaxes, misinformed articles or pieces of news that are designed to deceive consumers.
The network’s “fake news” functionality allows users to report pieces of news that are made up. Many of these articles are created by publications that specialize in fake or exaggerated news to sway public opinion and promote a certain agenda.
You also can report an article on Facebook if it is “annoying or distasteful,” sexual in its content, or if it advocates the violence or harm of animals or humans.
Additionally, you can report an article that goes against your views as a method of filtering the news that shows up on your feed, ensuring you only read articles with values that reflect your own.
FB shares enter the week with a technical challenge. Shares, at around $120, are attempting to break through the 200-day moving average. Facebook first broke below the average in mid-November, broke back above for about a week, then failed once more before entering its current second recovery attempt.
