Oil Prices Tumble In Choppy Trade

Oil prices fell sharply in choppy trade on Tuesday amid concerns that aggressive interest rate hikes by central banks could curtail economic growth and weigh on fuel demand.

The focus also shifted to the upcoming OPEC+ meeting and potential supply cuts.

Benchmark Brent crude futures fell 1.9 percent to $100.97 a barrel, while WTI crude futures were down 1.7 percent at $95.35.

Both contracts jumped over 4 percent on Monday, marking the biggest increase in more than a month.

Demand worries resurfaced amid talk of a hefty European Central Bank rate hike in September.

Futures markets have odds of better than two-thirds that the European Central Bank will raise rates by 75 basis points in September.

ECB Chief Economist Philip Lane said in a speech that the upcoming September monetary policy meeting will be the “start of a new phase” for the central bank.

The Organization of the Petroleum Exporting Countries, Russia, and allies, a group called OPEC+, will be meeting to set policy on Sept. 5 after top oil exporter Saudi Arabia warned about the possibility of cutting output to offset any major decline in crude rates.

As recession worries mount, oil producing nations seem intent on keeping the price of crude oil at currently elevated levels.

Photronics Q3 Profit Rises; Revenue Up 29%

Photronics, Inc. (PLAB) reported third quarter net income attributable to shareholders of $31.2 million or $0.51 per share, compared with $17.1 million or $0.28 per share, a year ago.

Revenue was $219.9 million, up 29% compared with the same period of last year. Integrated circuit revenue was $161.3 million, up 37% from last year. Flat panel display revenue was $58.7 million, up 11%.

For the fourth quarter, Photronics expects revenue to be between $205 million and $215 million and net income attributable to shareholders to be between $0.44 and $0.52 per share.

Frank Lee, CEO, said: “We are expanding capacity and growing volumes while controlling costs and capitalizing on operating leverage to deliver higher margins. We are also taking pricing action where appropriate to capture the full value that we are delivering to our customers.”

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Gold Inches Lower As Rate Hike Bets Weigh

Gold prices were moving lower on Tuesday despite retreating U.S. bond yields and weakness in the dollar index.

Spot gold slipped 0.3 percent to $1,733.19 per ounce, while U.S. gold futures were down 0.3 percent at $1,745.10.

Rate hike worries persist due to recent hawkish comments by Federal Reserve and ECB officials.

Minneapolis Fed President Neel Kashkari on Monday said the stock-market sell-off following Fed Chair Jerome Powell’s hawkish Jackson Hole speech showed “people now understand the seriousness of the Fed’s commitment to getting inflation back down to 2 percent.”

Separately, ECB Chief Economist Philip Lane said in a speech that the upcoming September monetary policy meeting will be the “start of a new phase” for the central bank.

Traders are now pricing in more than a two-thirds chance of a 75-basis-point move at the European Central Bank’s September 8 policy meeting.

Conns Inc. Q2 Profit Decreases, misses estimates

Conns Inc. (CONN) revealed a profit for second quarter that decreased from last year and missed the Street estimates.

The company’s earnings came in at $2.12 million, or $0.09 per share. This compares with $37 million, or $1.22 per share, in last year’s second quarter.

Excluding items, Conns Inc. reported adjusted earnings of $1 million or $0.04 per share for the period.

Analysts on average had expected the company to earn $0.09 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 17.1% to $346.63 million from $418.38 million last year.

Conns Inc. earnings at a glance (GAAP) :

-Earnings (Q2): $2.12 Mln. vs. $37 Mln. last year.
-EPS (Q2): $0.09 vs. $1.22 last year.
-Analyst Estimates: $0.09
-Revenue (Q2): $346.63 Mln vs. $418.38 Mln last year.

Pre-market Movers: MGAM, SNTG, FREY, BBBY, ABSI…

The following are some of the stocks making big moves in Tuesday’s pre-market trading (as of 07.05 A.M. ET).

In the Green

Mobile Global Esports Inc. (MGAM) is up over 27% at $3.31
FREYR Battery (FREY) is up over 13% at $14.30
Bed Bath & Beyond Inc. (BBBY) is up over 10% at $14.75
Absci Corporation (ABSI) is up over 10% at $3.66
Blue Water Vaccines, Inc. (BWV) is up over 9% at $3.13
Weber Inc. (WEBR) is up over 8% at $10.72
MAIA Biotechnology, Inc. (MAIA) is up over 7% at $4
Party City Holdco Inc. (PRTY) is up over 7% at $2.15
Spirit AeroSystems Holdings, Inc. (SPR) is up over 6% at $34.20
New Oriental Education & Technology Group Inc. (EDU) is up over 6% at $30.17
TAL Education Group (TAL) is up over 6% at $6.98

In the Red

Sentage Holdings Inc. (SNTG) is down over 20% at $3.99
Borr Drilling Limited (BORR) is down over 5% at $4.10

Harmoni Towers To Acquire Parallel Infrastructure From Apollo Global For Undisclosed Terms

Harmoni Towers, a portfolio company of Palistar Capital LP Tuesday said it agreed to acquire Parallel Infrastructure from funds managed by affiliates of Apollo Global Management, Inc. (APO). Charlotte, North Carolina-based Parallel is a tower platform and build-to-suit provider. The financial term of the deal is not revealed.

Harmoni said the acquisition creates the fifth largest tower company and the second largest private independent tower company in the U.S. The transaction is expected to be completed in the third quarter of 2022.