Oil Extends Gains After Big Drawdown In Crude Stocks

U.S. Manufacturing Index Indicates Modest Growth In October

A report released by the Institute for Supply Management on Tuesday showed a slight increase in U.S. manufacturing activity in the month of October.

The ISM said its manufacturing PMI edged down to 50.2 in October from 50.9 in September, but a reading above 50 still indicates growth in the sector. Economists had expected the index to dip to 50.0.

“The U.S. manufacturing sector continues to expand, but at the lowest rate since the coronavirus pandemic recovery began,” said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.

He added, “With panelists reporting softening new order rates over the previous five months, the October index reading reflects companies’ preparing for potential future lower demand.”

The report showed the new orders index climbed to 49.2 in October from 47.1 in September, while the production index rose to 52.3 from 50.6.

The employment index also increased to 50.0 in October from 48.7 in September, suggesting employment in the manufacturing sector was unchanged.

Meanwhile, the prices index tumbled to 46.6 in October from 51.7 in September, indicating a decrease in prices for the first time since May 2020.

On Thursday, the ISM is scheduled to release a separate report on activity in the service sector in the month of October. The services PMI is expected to dip to 55.5 in October from 56.7 in September.

Gold Inches Higher As Dollar Dips Ahead Of Fed Decision

Gold prices edged higher on Wednesday, as the dollar weakened and bond yields held largely steady ahead of the Federal Reserve’s interest-rate decision later in the day.

A weaker dollar makers bullion less expensive for overseas investors.

Spot gold rose 0.4 percent to $1,654.55 per ounce, while U.S. gold futures were up half a percent at $1,657.75.

The Fed is widely expected to raise interest rates by another 75 basis points, the fourth such increase in a row, as it fights the worst inflation in four decades.

That said, investors are waiting for signs that the U.S. central bank is prepared to slow the pace of its rate hikes come December.

Meanwhile, Thursday’s Bank of England meeting has become a close call between 50 bps and 75 bps.

The policy decision will be accompanied by the Minutes of the meeting, the Monetary Policy Report, economic projections and Governor Andrew Bailey’s press conference – making it a ‘Super Thursday’.

Rockwell Automation Inc. Q4 Profit Increases, beats estimates

Rockwell Automation Inc. (ROK) reported earnings for its fourth quarter that increased from last year and beat the Street estimates.

The company’s earnings came in at $338.9M, or $2.91 per share. This compares with $78.5M, or $0.67 per share, in last year’s fourth quarter.

Excluding items, Rockwell Automation Inc. reported adjusted earnings of $353.8 million or $3.04 per share for the period.

Analysts on average had expected the company to earn $2.97 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 17.7% to $2.13 billion from $1.81 billion last year.

Rockwell Automation Inc. earnings at a glance (GAAP) :

-Earnings (Q4): $338.9M. vs. $78.5M. last year.
-EPS (Q4): $2.91 vs. $0.67 last year.
-Analyst Estimate: $2.97
-Revenue (Q4): $2.13 Bln vs. $1.81 Bln last year.

Rogers Exploring Options Following DuPont’s Merger Termination Notice; Stock Plunges In Pre-market

Rogers Corporation (ROG), an electronic components business, on Wednesday said it is currently evaluating all options to determine the best path forward, in response to DuPont de Nemours, Inc.’s (DD) notice of termination of the definitive merger agreement entered into by Rogers and DuPont on November 1, 2021.

Following the news, the stock nosedived more than 40% in pre-market activity.

Rogers Corporation had announced entering into a definitive merger agreement to be acquired by DuPont in an all-cash transaction that valued Rogers at approximately $5.2 billion. The transaction was expected to be closed in the second quarter of 2022.

Shares of Rogers Corporation sank more than 40 percent in pre-market to trade at $136.32.

Shares of DuPont de Nemours are currently trading in pre-market at $61.70, up $3.00 or 5.11 percent from the previous close.

Trimble Inc. Q3 Profit Drops, Inline With Estimates

Trimble Inc. (TRMB) released earnings for third quarter that decreased from last year in line with the Street estimates.

The company’s earnings totaled $85.8 million, or $0.34 per share. This compares with $124 million, or $0.49 per share, in last year’s third quarter.

Excluding items, Trimble Inc. reported adjusted earnings of $164 million or $0.66 per share for the period.

Analysts on average had expected the company to earn $0.66 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 1.8% to $884.9 million from $901.4 million last year.

Trimble Inc. earnings at a glance (GAAP) :

-Earnings (Q3): $85.8 Mln. vs. $124 Mln. last year.
-EPS (Q3): $0.34 vs. $0.49 last year.
-Analyst Estimates: $0.66
-Revenue (Q3): $884.9 Mln vs. $901.4 Mln last year.

-Guidance:
Full year EPS guidance: $2.61-$2.67
Full year revenue guidance: $3.66 Bln-$3.71 Bln

Oil Extends Gains After Big Drawdown In Crude Stocks

Oil prices edged higher on Wednesday, after having climbed about 2 percent in the previous session as industry data showed a surprise drop in U.S. crude stockpiles.

Prices were also supported by a weaker dollar and renewed speculation of a gradual easing of the zero-COVID policy in China, the world’s largest crude importer.

Benchmark Brent crude futures rose 0.3 percent to $94.96 a barrel, while WTI crude futures were up 0.4 percent at $88.75.

In a positive sign for demand, data on Tuesday from the American Petroleum Institute showed that U.S. crude oil stocks fell by about 6.5 million barrels for the week ended Oct. 28.

A gauge of the dollar fell in international markets, making oil cheaper for holders of other currencies.

The dollar slipped from a near one-week peak versus major peers ahead of the looming Federal Reserve rate decision later today.

The U.S. central bank is widely expected to raise interest rates by another 75 basis points, but investors are pinning hopes that the Fed will signal plans to slow the pace of rate hikes at upcoming meetings.

Meanwhile, there is optimism from unconfirmed social media posts suggesting that Chinese policymakers are preparing to gradually exit the stringent zero-COVID policy, which has been a key factor in keeping a lid on oil prices.

Speculation is rife that policymakers are planning a relaxation of strict COVID-19 curbs in March 2023 due to widespread public rhetoric against the policy.