Oil Prices Rally As OPEC+ Stays The Course On Output Policy

Oil prices rallied around 2 percent in volatile trading on Friday as growing supply outages outweighed fears of a global economic slowdown.

Brent crude futures jumped 2 percent to $111.20 a barrel, while WTI crude futures were up 1.8 percent at $107.63.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, on Thursday said that they would stick to a previously plan of gradual production increases despite calls for bigger increases to rein in crude prices.

The producer group agreed to ratify the policy for August that was set in place at the last meeting, in early June. The cartel’s post-August policy is now expected to be discussed by alliance ministers at their next meeting on Aug. 3.

Meanwhile, members of the Lederne labour union representing Norwegian oil workers will go on strike from July 5, the union said on Thursday, likely shutting about 4 percent of Norway’s oil production.

Chicago Business Barometer Drops To Nearly Two-Year Low In June

MNI Indicators released a report on Thursday showing growth in Chicago-area business activity slowed by more than expected in the month of June.

The report showed the Chicago business barometer slumped to 56.0 in June from 60.3 in May. While a reading above 50 still indicates growth, economists had expected the business barometer to dip to 58.0.

With the bigger than expected decrease, the Chicago business barometer dropped to its lowest level since August of 2020.

The pullback by the business barometer came as the new orders index tumbled by 9.8 points to a two-year low of 49.9, while the production index slid by 5.7 points.

On the other hand, the report showed the employment index jumped by 4.6 points or 50.7, reaching the highest level since last November.

MNI Indicators said the prices paid index eased 9.0 points to 79.6, the lowest reading since February of 2021, as 13 percent fewer firms saw higher prices in June compared to May.

European Economics Preview: Eurozone Flash Inflation, Factory PMI Due

Flash inflation and final factory Purchasing Managers’ survey results from Eurozone are due on Friday, headlining a busy day for the European economic news.

At 2.00 am ET, Russia S&P Global manufacturing Purchasing Managers’ survey results are due for June.

At 3.00 am ET, manufacturing PMI survey results are due from Poland, Turkey and Hungary. Also, unemployment and harmonized consumer prices from Austria are due.

At 3.15 am ET, S&P Global is set to issue Spain manufacturing PMI data. The PMI is seen easing to 52.1 in June from 53.8 in the previous month.

At 3.45 am ET, Italy manufacturing PMI data is due for June. Economists forecast the index to fall to 50.5 from 51.9 in May.

Thereafter, final PMI survey results are due from France and Germany at 3.50 am and 3.55 am ET, respectively.

At 4.00 am ET, Eurozone final manufacturing PMI data is due. The final PMI reading is seen at 52.0 in June, in line with flash estimate, but down from 54.6 in May.

Half an hour later, the Bank of England releases UK mortgage approvals data. The number of mortgages approved in May is forecast to fall to 64,000 from 65,970 in April.

In the meantime, UK S&P Global/CIPS final manufacturing PMI data is due. Economists expect the index to drop to 53.4 in June, as initially estimated, from 54.6 in May.

At 5.00 am ET, Eurostat releases eurozone flash inflation data for June. Inflation is expected to rise to 8.4 percent from 8.1 percent in May.

Regeneron Completes Acquiring Sanofi’s Stake In Libtayo

Regeneron Pharmaceuticals, Inc. (REGN) announced Friday that it has completed the acquisition of French drug major Sanofi’s (SNYNF,SNY) stake in Libtayo (cemiplimab), providing Regeneron with exclusive worldwide development, commercialization, and manufacturing rights to the medicine originally discovered in Regeneron’s laboratories. The intent to purchase Libtayo was announced on June 2, 2022.

With today’s closing, Regeneron will now record 100% of global net sales and expenses for Libtayo.

Regeneron intends to update its full year 2022 financial guidance to reflect the Libtayo purchase during its second quarter 2022 earnings announcement in early August.

On May 31, 2022, Regeneron announced that it had successfully acquired Checkmate Pharmaceuticals, Inc. for a total equity value of approximately $250 million.

As a result of the Checkmate acquisition, Regeneron expects to record in the second quarter of 2022 an acquired in-process research and development (IPR&D) charge of approximately $195 million, which would negatively impact GAAP and non-GAAP diluted earnings per share by approximately $1.70.

Pre-market Movers: INO, CLSK, BORR, KSS, HNRG…

The following are some of the stocks making big moves in Friday’s pre-market trading (as of 06.50 A.M. ET).

In the Green

Inovio Pharmaceuticals, Inc. (INO) is up over 16% at $2.01
CleanSpark, Inc. (CLSK) is up over 14% at $4.49
Lightning eMotors, Inc. (ZEV) is up over 8% at $3.00
Schweitzer-Mauduit International, Inc. (SWM) is up over 7% at $27.12
Nexa Resources S.A. (NEXA) is up over 6% at $6.41
Snap-on Incorporated (SNA) is up over 5% at $208.44
Agnico Eagle Mines Limited (AEM) is up over 5% at $48.16
Belite Bio, Inc (BLTE) is up over 5% at $32.89
Carvana Co. (CVNA) is up over 5% at $23.84
Aspen Aerogels, Inc. (ASPN) is up over 5% at $10.38

In the Red

Borr Drilling Limited (BORR) is down over 12% at $4.03
Kohl’s Corporation (KSS) is down over 11% at $31.55
Hallador Energy Company (HNRG) is down over 10% at $4.86
Genworth Financial, Inc. (GNW) is down over 7% at $3.26
Exicure, Inc. (XCUR) is down over 6% at $2.02
Micron Technology, Inc. (MU) is down over 5% at $52.50