The aftermath of the worst tropical storm to hit Texas in over 50 years is having an incapacitating effect on a key oil area. Oil and gas suffered losses on the S&P 500 and the Dow. Both indexes traded flat little changed, the Dow fell -0.02%, the S&P 500 nipped up +0.05%while the Nasdaq was up +0.28%. Biotechnology stocks were among the advances on the S&P 500 the sector and saw a positive change of +1.67%.
The gold mining sector climbed +3.72% in trading today. Individual stocks Newmont Mining up +3.54%, Barrick Gold (+3.09%) and Agnico Eagle Mines also made gains +4.49%. The symposium of central bankers left investors without any clues as to the direction of rates, pushing gold up +1.44%, its highest close since September 2016.
- Dow 21,808.40 -0.02%
- S&P 500 2,444.24 +0.05%
- Nasdaq 6,283.02 +0.28%
- Russell 2000 1380.62 +0.24%
- NYSE Composite 11,794.33 -0.15%
- Gold 1,316.6 +1.44%
- Oil WTI 46.70 -2.44%
- 10-Year Treasury 2.15 -0.03%
After the storm, came the floods
After category 4 tropical storm Harvey hit Texas late Friday, followed by driving rains and rising floodwaters and predictions for rains to continue for a number of days.
Crude oil dropped -2.44% to $46 a barrel over concerns about refinery shutdowns. Around 15% of the oil output in the US was interrupted. The storm is heading to Louisiana and threatening to cause damage to other plants in the area which could mean 30% of refining capacity goes offline.
Energy companies Chesapeake Energy Corp was down -3.69% and Range Resources Corp fell -3.19%.
Gilead acquires Kite and new cancer treatment
Biotech company Gilead Sciences rose +1.22% on the news it would acquire biotech company, Kite Pharma (up +27.99%) for $11bn to diversify its drug offerings and puts it in the lead for cell therapies.
Kite Pharma is one of a few companies developing new chimeric antigen receptor T-cell (CAR-T) therapy. Kite's therapy focuses on patients suffering aggressive non-Hodgkin lymphoma for whom other therapies have failed.
The Kite therapy works to make the patient's own immune cells to fight cancer. John F. Milligan, PhD, Gilead's CEO said: "The field of cell therapy has advanced very quickly, to the point where the science and technology have opened a clear path toward a potential cure for patients. We...share their belief that cell therapy will be the cornerstone of treating cancer."
Expedia loses its CEO while Uber gains one
Uber announced that it appointed Expedia's CEO, Dara Khosrowshahi as its new CEO with the online travel group sliding -4.51% on the news.
The trouble-plagued venture startup has been seeking a new CEO since the resignation of Travis Kalanick in June.
The privately held company's high-profile squabbles between the board and with investors, Benchmark, who are trying to oust Kalanick from the board have led to a legal battle.
There is also accusations of sexism and the lawsuit by Alphabet for allegedly using design secrets from its self-driving programme means Khosrowshahi will have a lot to contend with. Uber is said to be valued at around $50bn but troubles or no investors have been waiting in anticipation of an IPO from this online transportation company to be launched.
Week ahead: data to be released this week include US Consumer Confidence Index, Employment figures for August and Q2 GDP.