Oil Prices Slip On Demand Worries

Oil prices fell over 1 percent on Tuesday, with China demand worries and rate hike fears weighing on prices.

Benchmark Brent crude futures dipped 1.1 percent to $106.45 a barrel while U.S. crude futures were down 1.2 percent at $103.95.

Stringent coronavirus lockdowns in Shanghai and elsewhere in China raised worries about fuel demand.

Zero-Covid efforts are slowing China’s economy as the country prepares for its key Communist Party Congress.

Analysts expect the country to maintain the basic approach of “zero Covid” over the next few months despite the mounting social and economic costs.

Meanwhile, as EU leaders firm up plans to announce a sixth tranche of sanctions against Russia this week, Slovakia is seeking an exemption against approving a ban on Russian oil. Hungary also said it will not support sanctions on Russian oil and gas shipments.

Traders also await the latest round of U.S. inventory and supply reports, the Federal Reserve’s decision on interest rates and a meeting of ministers from OPEC and its allies for directional cues.

The Federal Reserve is set to hike interest rates by 50 bps when it announces its policy decision on Wednesday. The OPEC and its allies are scheduled to meet on Thursday.

Eaton Corp. Q1 Profit Increases, beats estimates

Eaton Corp. (ETN) announced a profit for its first quarter that increased from last year and beat the Street estimates.

The company’s earnings totaled $532 million, or $1.33 per share. This compares with $458 million, or $1.15 per share, in last year’s first quarter.

Excluding items, Eaton Corp. reported adjusted earnings of $649 million or $1.62 per share for the period.

Analysts on average had expected the company to earn $1.60 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 3.2% to $4.84 billion from $4.69 billion last year.

Eaton Corp. earnings at a glance (GAAP) :

-Earnings (Q1): $532 Mln. vs. $458 Mln. last year.
-EPS (Q1): $1.33 vs. $1.15 last year.
-Analyst Estimate: $1.60
-Revenue (Q1): $4.84 Bln vs. $4.69 Bln last year.

-Guidance:
Next quarter EPS guidance: Adj; $1.78 – $1.88
Full year EPS guidance: Adj; $7.32 – $7.72

Gold Dips As Fed Meeting Gets Underway

Gold prices were moving in a tight range on Tuesday as a two-day policy meeting of the Federal Reserve meeting gets underway.

Spot gold slid 0.2 percent to $1,859.34 per ounce, while U.S. gold futures were down 0.2 percent at $1,860.08.

The dollar hovered near 20-year highs and bond yields edged higher amid expectations the U.S. Federal Reserve will hike interest rates by a half-a-percentage point when it hands down its policy decision on Wednesday – the first such increase in about 20 years.

There is potential for the U.S. central bank to adopt an even more hawkish tone than many expect. As inflation worries mount, some investors are watching for the possibility of a 75 basis point hike, or a faster pace of balance sheet reduction.

Elsewhere, the Bank of England is expected to raise interest rates to their highest level since 2009 on Thursday.

Earlier today, Australia’s central bank raised its key interest rate for the first time in over 11 years and signaled more tightening measures, saying that now was the right time to begin withdrawing some of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic.

Thomson Reuters Corporation Q1 Profit Decreases, misses estimates

Thomson Reuters Corporation (TRI.TO) released earnings for first quarter that decreased from last year and missed the Street estimates.

The company’s bottom line totaled $1.01 billion, or $2.06 per share. This compares with $5.04 billion, or $10.13 per share, in last year’s first quarter.

Excluding items, Thomson Reuters Corporation reported adjusted earnings of $322 million or $0.66 per share for the period.

Analysts on average had expected the company to earn $0.79 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 5.7% to $1.67 billion from $1.58 billion last year.

Thomson Reuters Corporation earnings at a glance (GAAP) :

-Earnings (Q1): $1.01 Bln. vs. $5.04 Bln. last year.
-EPS (Q1): $2.06 vs. $10.13 last year.
-Analyst Estimates: $0.79
-Revenue (Q1): $1.67 Bln vs. $1.58 Bln last year.

ITT Corporation Q1 Profit Drops, Inline With Estimates

ITT Corporation (ITT) reported earnings for first quarter that decreased from the same period last year in line with the Street estimates.

The company’s bottom line totaled $74.8 million, or $0.88 per share. This compares with $86.2 million, or $0.99 per share, in last year’s first quarter.

Excluding items, ITT Corporation reported adjusted earnings of $82.9 million or $0.97 per share for the period.

Analysts on average had expected the company to earn $0.97 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 4.0% to $726.2 million from $698.4 million last year.

ITT Corporation earnings at a glance (GAAP) :

-Earnings (Q1): $74.8 Mln. vs. $86.2 Mln. last year.
-EPS (Q1): $0.88 vs. $0.99 last year.
-Analyst Estimates: $0.97
-Revenue (Q1): $726.2 Mln vs. $698.4 Mln last year.

-Guidance:
Full year EPS guidance: Adj; $4.30 to $4.70

The GEO Group Inc. Reports Retreat In Q1 Bottom Line

The GEO Group Inc. (GEO) revealed earnings for first quarter that decreased from the same period last year

The company’s earnings came in at $38.22 million, or $0.26 per share. This compares with $50.54 million, or $0.41 per share, in last year’s first quarter.

The company’s revenue for the quarter fell 4.4% to $551.19 million from $576.38 million last year.

The GEO Group Inc. earnings at a glance (GAAP) :

-Earnings (Q1): $38.22 Mln. vs. $50.54 Mln. last year.
-EPS (Q1): $0.26 vs. $0.41 last year.
-Revenue (Q1): $551.19 Mln vs. $576.38 Mln last year.

-Guidance:
Next quarter EPS guidance: Adj; $0.30 – $0.32
Full year EPS guidance: Adj; $1.17 to $1.27