Oil Futures Settle Higher For 3rd Straight Day
European Economic News Preview: UK Unemployment Data Due
Unemployment from the UK and economic sentiment survey results from Germany are the top economic news due on Tuesday.
At 2.00 am ET, the Office for National Statistics releases UK labor market statistics. The ILO jobless rate is forecast to rise to 4.3 percent in three months to July from 4.2 percent in the preceding period.
In the meantime, wholesale prices data is due from Germany. Wholesale prices are forecast to fall 0.1 percent on month in August, following a 0.2 percent decrease in July.
At 3.00 am ET, Spain’s INE releases final consumer and harmonized prices for August. The flash estimate showed that consumer price inflation rose to 2.6 percent from 2.3 percent in July.
At 5.00 am ET, Germany’s ZEW economic confidence survey results for September. The economic sentiment index is forecast to fall to -15.0 from -12.3 in August.
Aehr Up 6% On Securing Order From New Customer
Shares of Aehr Test Systems (AEHR) are up 6% on Monday after the company announced that it received an order from a US-based semiconductor supplier.
AEHR is trading on the Nasdaq at $50.12, up 6.48% or $3.05 per share. It has traded between $13.08 and $54.10 in the past 52-week period.
The order includes a FOX-NP wafer level test and burn-in system, multiple WaferPak Contactors, and a FOX WaferPak Aligner.
These tools will be used for engineering, qualification, and small lot production wafer level tests and burn-in of their silicon carbide devices.
The company also disclosed that the FOX-NP system, along with the FOX WaferPak Aligner and initial WaferPaks, will be shipped by the end of the calendar year 2023, per the customer’s requested accelerated schedule.
Joby Aviation Gains After Announcing New Aircraft Production Facility In Ohio
Joby Aviation, Inc. (JOBY) shares are gaining more than 5 percent on Monday morning trade after the company announced it plans to locate its first scaled aircraft production facility in Dayton, Ohio. The facility will have a production capacity of 500 electric vertical take-off and landing aircraft per year. The company plans to invest $500 million, creating up to 2000 jobs.
Currently, shares are at $6.91, up 5.66 percent from the previous close of 4,328,187.
Green Plains Partners LP Up 16% On Merger Agreement With Green Plains Inc.
Shares of Green Plains Partners LP (GPP) are up 16% on Monday after the company and Green Plains Inc. entered into a definitive merger agreement under which it will acquire all publicly held common units of the Partnership that are not already owned by Green Plains and its affiliates.
GPP is trading on the Nasdaq at $16.08, up 16.73% or $2.30 per share. It has traded between $11.72 and $16.25 in the past 52-week period.
Unser the agreement, the Partnership’s outstanding common units will be converted for 0.405 shares of Green Plains’ common stock and $2.00 in cash, as well as an amount of cash equal to unpaid distributions from the last quarter to the closing date, without interest.
The transaction offers approximately $15.69 per Partnership common unit as of September 15, 2023, which is a 20% premium over the closing price of the Partnership’s common units of $13.08 on May 3, 2023.
The main objective of the merger is to simplify the corporate structure, increase cash flow, and align strategic interests.
The transaction is expected to be completed in the fourth quarter of 2023.
After the transaction, the Partnership will become an indirect wholly owned subsidiary of Green Plains, and the Partnership’s common units will no longer be listed on Nasdaq.
Knowles Up 7% On Deal To Acquire Cornell Dubilier
Shares of Knowles Corporation (KN) are up 7% on Monday after the company agreed to buy Cornell Dubilier.
KN is trading on the New York Stock Exchange at $15.30, up 7.33% or $1.05 per share. It has traded between $11.57 and $20.25 in the past 52-week period.
The company is set to acquire Cornell Dubilier, a manufacturer of high-quality film, electrolytic, and mica capacitors, for a total of $263 million, with a cash payment of $140 million upon closing and an interest-free seller note of $123 million. The deal is expected to be accretive to Knowles’ adjusted earnings per share in 2024.
The closing of the acquisition is anticipated in the fourth quarter of 2023.
Additionally, Knowles announced that they are reviewing alternative strategic options for their Consumer MEMS Microphones (CMM) business, which designs and produces micro-electro-mechanical systems microphones that enable voice control communication and superior audio recording for customers in the ear, computing, internet of things, and smartphone market segments.
Oil Futures Settle Higher For 3rd Straight Day
Oil futures settled higher on Monday, rising for a third straight session, as prices moved up amid tightening global crude supplies.
Prospects of higher demand, and a weak dollar contributed as well to the rise in oil prices.
West Texas Intermediate Crude oil futures for October ended higher by $0.71 or about 0.8% at $91.48 a barrel. the highest settlement this year.
Brent crude futures were up $0.47 or about 0.5% at $94.40 a barrel a little while ago.
With Saudi Arabia and Russia deciding earlier this month to extend their voluntary output cuts till the end of the year, oil prices have been climbing higher.
Recent economic data showing an uptick in industrial production in China has raised hopes about the demand outlook from the world’s second largest economy.
Industrial production jumped 4.5% in August versus previous month’s readings that stood at 3.7%. Markets had expected a spike to 3.9%. Likewise retail sales in August jumped to 4.6%, from previous reading of 2.5% and expectations of 3%.
The stimulus measures already announced by the Chinese govt as well as expectations of more to come abetted the positive demand outlook for crude oil.
Last week, the Organization of the Petroleum Exporting Countries (OPEC) issued updated forecasts of solid demand and pointed to a potential 2023 supply deficit if production cuts persist.