Stocks Move Higher After Court Blocks Many of Trump's Tariffs -- Commodities Roundup
MARKET MOVEMENTS:
--Brent crude oil is down 1.3% to $63.46 a barrel
--European benchmark gas is down 3.4% to EUR35.60 a megawatt-hour
--Gold futures are up 0.4% to $3,336.90 a troy ounce
--LME three-month copper futures are up 0.1% at $9,578.50 a metric ton
TOP STORY:
Stocks Move Higher After Court Blocks Many of Trump's Tariffs
Global markets rallied and U.S. stocks rose, after a federal trade court struck down President Trump's sweeping tariffs.
The Nasdaq Composite led gains, rising more than 1% as stocks such as Tesla rallied. Tech shares got an extra boost from Nvidia's earnings, which showed the chip maker's sales continuing to boom despite it being shut out of China.
The ruling by the previously obscure court late Wednesday voids many of the levies that sparked a trade war and roiled the world economy.
The Trump administration plans to appeal. Kevin Hassett, director of the National Economic Council, said the administration was confident the ruling would be overturned, and it wouldn't affect trade talks under way with more than a dozen nations.
Economists struck a cautious note, saying the administration could prevail on appeal. They also noted the ruling doesn't cover all of Trump's tariffs, including current or planned duties on products such as steel, aluminum and chips. Analysts speculated the administration could deploy alternative legal measures.
OTHER STORIES:
Shell to Buy TotalEnergies' Stake in Nigerian Oil Field for $510 Million
Shell will buy TotalEnergies' stake in an oil field offshore Nigeria for $510 million, increasing its interest in the country's deep-water Bonga field.
Shell said Thursday that it will buy TotalEnergies' 12.5% stake in the oil field by purchasing its portion of the production-sharing contract. This will increase its interest in the field to 67.5% from 55%.
In a separate release, TotalEnergies said it was selling the stake for $510 million.
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NRG's Stock Is a Top Gainer. How Does It Really Make Money?
NRG Energy, once viewed as a boring retail energy supplier, suddenly is one of America's hottest stocks. Investors see a power producer expanding rapidly to tap surging demand driven by artificial intelligence.
But NRG also is a large derivatives trader. It has volatile earnings, a weak balance sheet and in some ways resembles a commodities hedge fund that also owns power plants. About $5.2 billion of NRG's assets were derivative contracts as of March 31, compared with $2.2 billion of property, plant and equipment.
Much of NRG's earnings are of the noncash, mark-to-market variety, tied mainly to commodity prices, including natural gas and power. Those aren't visible on the face of NRG's income statement, but they are disclosed in the footnotes.
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Continental Says Aumovio CEO to Also Take Interim CFO Role
Continental said that Aumovio's CEO Philipp von Hirschheydt has been also appointed interim chief financial officer of the unit ahead of its planed spinoff.
The German auto-parts maker said on Thursday that Karin Dohm decided to not take up the position as planned for personal reasons.
The board has started the process to find Dohm's replacement and sees no impact on the timeline of the planned spinoff in September, it said.
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Kazatomprom Earnings Hit by Lower Sales, Falling Prices
By Adam Whittaker
NAC Kazatomprom's said lower sales volumes and a drop in uranium prices dragged on its first quarter-earnings.
Kazakhstan's state uranium company said Thursday that uranium sales dropped 7% over the quarter compared with the same period a year prior. Meanwhile, there was a 13% decrease in average selling prices, it said.
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U.K. April Car Manufacturing Hit by Late Easter, Model Changes and Lower Exports
U.K. car manufacturing fell in April an industry body said Thursday, citing the later Easter, model changes and lower export demand in key markets due to uncertain international trading.
The Society of Motor Manufacturers and Traders said that 56,534 cars drove off the production lines in April, compared with 61,820 for the same month last year. This takes the year-to-date figure to 271,770 cars compared with 284,191 for the same period a year earlier and marking the worst start to the year since 2009 when 281,218 cars were built.
MARKET TALKS:
Cattle Turn Higher as Screwworm Fears Fester -- Market Talk
0955 ET - Live cattle futures on the CME are up 0.6%, with trading tentative while the market monitors the New World screwworm infection situation. "Experts on the New World screwworm believe it isn't if the fly enters the U.S., but when," says ADM Investor Services in a note. Monitoring stations are being added at the U.S.-Mexico border, the firm says, but a solution to the outbreak of the parasite remains slow to develop. Lean hog futures are down 0.3% in early trading. (kirk.maltais@wsj.com)
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USDA Announces New Flash Sale of Corn to Mexico -- Market Talk
0918 ET - The government reports that Mexico purchased 104,000 metric tons of corn for delivery in the 2024/25 marketing year. Additionally, 101,096 tons of corn were reported as sold to unknown destinations, also for delivery in 2024/25. Mexico is typically a top buyer of U.S. corn exports, so the confirmation of a fresh flash sale may prove supportive for CBOT corn futures in today's session--although they're down 0.9% in pre-market trading. Soybeans are off 0.4% and wheat is up 0.2%. (kirk.maltais@wsj.com)
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Crude Futures Give Up Tariff-Ruling Gains -- Market Talk
0905 ET - Oil futures turn lower after spiking overnight on a U.S. federal court's ruling against President Trump's tariffs, which the administration says it intends to appeal. The market appears still focused on the OPEC+ meeting this weekend where the group is expected to unwind another 411,000 barrels a day of production cuts in July. The API's report of a 4.2 million barrel drawdown last week in U.S. crude oil stocks is "unlikely to be replicated" in the EIA data, Ritterbusch says in a note, although another small draw at Cushing, the Nymex delivery hub, "will help keep the WTI curve supported." WTI is down 0.4% at $61.58 a barrel, and Brent is 0.3% lower at $64.71.(anthony.harrup@wsj.com)
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Grains Lower as Weather Outlook Signals Improvement -- Market Talk
0852 ET - CBOT grains are lower in pre-market trading, with futures not getting much of a boost from a federal trade court's blocking of many of President Trump's tariffs. Instead, grains are reacting to weather that will help push crop planting to the finish line--and allow for a solid start to the summer growing season. "More rains are on tap next week to aid the bulk of U.S. crops, with a previously feared drought pattern for the corn belt this summer looking like it will fail to materialize," says Matt Zeller of StoneX in a note. "Crop ratings should improve for most going forward." Most-active corn is down 1.1%, soybeans fall 0.4%, and wheat is flat. (kirk.maltais@wsj.com)
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U.S. Natural Gas Futures Lower Ahead of Storage Data -- Market Talk
0846 ET - U.S. natural gas futures are lower with limited weather-driven demand expected over the next week and the market awaiting the weekly EIA inventory report. Underground storage is expected to have increased by 93 Bcf, according to a Wall Street Journal survey of analysts. "While still substantial, odds favor the smallest injection in five weeks, and chances for a bullish surprise could rapidly restore confidence after yesterday's selloff," Eli Rubin of EBW Analytics says in a note. "The natural gas market is closely monitoring mild weather this spring, and may be poised to break higher when hotter weather arrives," he says. Nymex natural gas is off 1.6% at $3.502/mmBtu as July moves to the front of the curve. (anthony.harrup@wsj.com)
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Gold Futures Stabilize After Earlier Selloff on Court's Tariff Decision -- Market Talk
1134 GMT - Gold futures stabilize after a selloff earlier in the session prompted by easing concerns over tariffs. Futures are flat on $3,324.20 a troy ounce. The U.S. Court of International Trade ruled Wednesday that President Trump's broad tariffs were unlawful, damping safe-haven demand for gold in earlier trade. The precious metal had been a primary beneficiary of uncertainty and geopolitical tensions created by the Trump administration, sitting up more than 25% year-to-date, SP Angel analysts say in a note. That said, Trump has gradually pulled back on various punitive measures on China and tensions with the European Union thawed over the weekend, SP Angel says. Speculative funds may have taken profits on gold, but China will likely continue buying dips, the analysts add. (joseph.hoppe@wsj.com)
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Palm Oil Ended Higher on Higher Soybean Oil Prices -- Market Talk
1014 GMT - Palm oil ended higher on higher soybean oil prices and a weaker ringgit, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. Ng sees prices supported at MYR 3,800 and resistance at MYR4,000. Sentiment was supported by the rally in U.S. equity futures after upbeat earnings from Nvidia, Kenanga Futures analysts in a commentary. The Bursa Malaysia Derivatives contract for Augest delivery rose MYR34 to MYR3,933 a ton. (tracy.qu@wsj.com)
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Base Metal Prices Rise on U.S. Court Decision on Tariffs -- Market Talk
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May 29, 2025 10:24 ET (14:24 GMT)