Oil Gains Another 20% As Demand Recovers
Demand for petrol is starting to show signs of life after a historic collapse. Oil prices are pushing sharply higher.
US crude oil prices rose to $24 per barrel on Tuesday morning. Despite the fact that oil prices remain at depressed levels, they reached the highest level since April 13. As some US states begin to reopen, experts suggest that this is a sure sign of the beginning of a continuous increase in oil prices.
Demand for petrol in the United States is now up 19% – the highest level since March 16.
Oil stocks, crushed by the crisis earlier this year, have responded immediately with a bullish trend.
All 27 members of the S&P 500 energy sector (XLE) traded higher Tuesday morning, led by Occidental Petroleum (OXY), Concho Resources (CXO) and Apache (APA), showed a promising 6% spike. The two largest US oil companies ExxonMobil (XOM) and Chevron (CVX) appreciated by 3% per share.
President Donald Trump expressed his delight at the recovering energy market in his tweet Tuesday morning: “Oil prices moving up nicely as demand begins again!”
Beyond Meat Revenue Shoot Up 141%
Beyond Meat, a company that produces plant-based meat substitutes, has managed to more than double its revenue in the first quarter.
Last year, the company closed the first three months of the year with an impressive result of $40.2 million. However, this year the sales have already reached $97.1 million (up 141%), and the company expects to continue benefiting from higher demand in retail. Compared to the same timeframe last year, the US both retail and food service sales increased by 157% and 156% accordingly.
After releasing the Q1 revenue report on Tuesday, Beyond Meat shares grew about 5%.
Stocks Of Optimism
With the reopening of the US economy, the market optimism grew stronger and sparked an encouraging increase in stocks.
While still way below their previous highs, all three indexes finished the second consecutive day of gains.
Wayfair’s Sales Soar 20%
Many online retail companies have reaped the benefit during the COVID-19 pandemic. With the enforcement of lockdowns and social distancing, Americans didn’t compromise on their shopping habits and switched entirely to online retailers.
Wayfair’s solid e-commerce infrastructure allowed it to not only maintain its business activity, but also increase its revenue by 20%, compared to the first quarter of 2019.
“Millions of new shoppers have discovered Wayfair while they shelter in place at home,” said CEO Niraj Shah. “We are seeing strong acceleration in new and repeat customer orders across almost all classes of goods and across all regions.”
Wayfair’s stock saw a respectful 25% increase in early trading.
Norwegian Cruise Line Stock May Become History
Norwegian Cruise Line Holdings (NCLH) may go out of business and has warned investors of this potential grim outcome.
The company, besides facing a liquidity crunch, has suffered greatly due to the coronavirus pandemic. “The current, and uncertain future, impact of the COVID-19 outbreak, including its effect on the ability or desire of people to travel (including on cruises), is expected to continue to impact our results, operations, outlook, plans, goals, growth, reputation, cash flows, liquidity, demand for voyages and share price.”, said Norwegian Cruise Line in a statement.
Investors didn’t hesitate to react. Shares of Norwegian fell as much as 24%, to $11.03, on Tuesday. Year-to-date, the stock is down more than 80%.