Wall St mixed as US oil plans emerge; BlueScope says no to takeover

Stocks on Wall Street were mixed as oil majors Chevron and Exxon Mobil followed oil prices lower after US President Donald Trump said Venezuela will provide the world’s biggest economy with up to 50 million barrels of crude, while tech stocks remained in focus as firms showed off their wares at the Consumer Electronics Show in Las Vegas.

Warner Bros Discovery nudged higher after its board recommended shareholders reject the Ellison family-backed Paramount Skydance’s takeover bid, having given streaming giant Netflix’s offer the thumbs up.

Meanwhile, Australian futures are pointing to a soft start to the trading day across the Tasman, where BlueScope Steel’s board rejected a A$13.1 billion offer from the Stokes family-backed SGH and Nasdaq-listed Steel Dynamics.

And Nestle’s infant formula recall has been expanded beyond Europe to the Americas, Africa and Australasia.

Ebbs and flows

Stocks on Wall Street were mixed as the blue chip Dow Jones Industrial Average snapped a three-day rally, down 0.4% in late trading, with Caterpillar, UnitedHealth Group and Honeywell International leading the index lower.

Energy companies Chevron and Exxon Mobil were on the red side of the ledger as Brent crude oil futures fell 0.7% to US$59.90 at 7am in Auckland after US President Donald Trump gave more details on his plans to Venezuela’s oil fields after ousting the nation’s president Nicolas Maduro over the weekend.

The US president said Venezuela will give the US 30 million-to-50 million barrels of sanctioned oil, which will be sold at market price, with the money controlled by Trump.

Meanwhile, shares of rental home operators Invitation Homes and AMH declined after Trump said he wants ban institutional investors from buying single-home properties and will seek Congress to put that into action. Meme stock favourite Opendoor Technologies slumped 12% in late trading.

Warner Bros Discovery gained after its board recommended shareholders reject a hostile takeover offer from Paramount Skydance – which was weaker on the news – saying the bid doesn’t match the preferred deal with streaming giant Netflix. New Zealand’s Sky Network Television has been moved around by the news, with future access to the HBO library uncertain.

A new world awaits

Meanwhile, the tech-heavy Nasdaq Composite was up 0.6% in late trading as the Consumer Electronics Show in Las Vegas continues, with firms revealing new products and how they plan to use new technologies. The S&P 500 nudged up 0.1%.

Across the Atlantic, stock markets were mixed as the UK’s FTSE 100 fell 0.7% and France’s CAC 40 was marginally weaker, while Germany’s DAX 30 gained 0.9%.

Swiss-listed Nestle was down 2.1% after expanding its recall of some infant formula batches beyond Europe to the Americas, Africa, Asia and Australasia. Local infant formula firm a2 Milk Co has declined for the past three sessions.

The kiwi dollar traded at 57.81 US cents at 7am in Auckland from 57.88 cents yesterday as data painted a mixed picture of the US economy, with services activity growing a rapid clip while jobs data showed a softer labour market than anticipated ahead of December’s non-farms payrolls figures on Friday.

Australian futures are pointing to a 0.1% decline for the S&P/ASX 200 index when trading opens across the Tasman, with BlueScope Steel back in focus after the steelmaker’s board rejected a A$30 per share offer from the Stokes family-controlled SGH and Nasdaq-listed Steel Dynamics, calling it highly opportunistic and undervaluing the company.

The surprise bid spurred gains among New Zealand steel companies including Vulcan Steel, Fletcher Building and Steel & Tube Holdings.

Reporting by Paul McBeth. Image from Roberto Júnior on Unsplash.