Monday's Market Minute: Further Production Cuts Spark Higher Crude Prices

We begin the holiday-shortened week with the price of WTI crude oil up around 1% on news of further production cuts. Reports that Saudi Arabia will prolong their unilateral cuts from earlier this month of 1 million barrels a day, and that Russia plans to add to it with fresh curbs, have sent the prices of Brent crude to $76.58 overnight ahead of the U.S. cash open. According to the Russian Deputy Prime Minister in a press release, the cuts will amount to 500K barrels a day beginning next month.

A couple of stocks making headlines this morning are Apple (AAPL) and Tesla (TSLA). Let’s begin with the positive: shares of TSLA are up around 6% on robust 2Q production results. The company announced deliveries topped 466K, an increase of over 80% year-over-year. Meanwhile, shares of AAPL are lower today into the open on news that complexities associated with the production of the new Vision Pro headset are causing massive production cuts. The Financial Times that says Apple is preparing to make fewer than 400K, while earlier expectations were for around 1 million units in the first 12 months.

This all ahead of a busy holiday-shortened week on Wall Street. The focus is primarily on the jobs report due out Friday, which could provide more information in terms of the Fed’s next move. A strong report would give the FOMC a greenlight to raise rates by 25bps later this month, while a soft number could raise speculations for another skip. But between now and then we have the PMI and the ISM Manufacturing data due out, as well as the Construction Spending figures today. Wednesday, we have the Fed minutes in addition to Factory Orders. Thursday, the ADP and the Challenger Job Cut report will kick off the focus on labor conditions. As mentioned, on Friday, analysts are looking for around 215K jobs to have been added last month in the NFP payrolls data.

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