Oil stocks see broad selloff as Chevron's buyout of Hess fails to fuel buying
Shares of energy companies traded broadly lower in premarket trading Monday, as the Chevron Corp.'s $53 billion stock deal to buy Hess Corp. appeared to do more harm than good for the sector. The Energy Select Sector SPDR ETF (XLE) dropped 0.9%, with 20 of the 22 equity components that have traded ahead of the open losing ground. In comparison, futures (ES00) for the S&P 500 were down 0.5% and crude oil futures (CL.1) fell 0.7%. Hess' stock rose just 0.6% despite the buyout, as the fact that it was a stock deal sent Chevron's stock falling 2.7% to pace the energy ETF's decliners. The only other gainer in the ETF was Williams Companies Inc.'s stock (WMB), which gained 0.9% but on very light volume. Among other more-active ETF components, shares of Occidental Petroleum Corp. (OXY) shed 1.1%, Exxon Mobil Corp.'s (XOM) stock gave up 0.7% and Marathon Oil Corp. shares (MRO) slid 1.5%. Shares of Pioneer Natural Resources Co. (PXD), which Exxon Mobil agreed to buy earlier this month in a $59.5 billion stock deal, slipped 0.3% in the premarket.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
10-23-23 0740ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
After Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is GE Aerospace Stock a Buy, a Sell, or Fairly Valued?
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track