Stock market today: Live updates

Jeremy Siegel, emeritus professor at the Wharton School of Business, said the stock market performed well in the first quarter, but the market could gain more foothold if the Federal Reserve gets its way. You may have a hard time sticking to it.

Siegel said the Fed’s latest economic forecast implied negative economic growth by the end of the year, which would weigh on stocks, said the “Squawk Box”.

“If the Fed wants to plan negative GDP growth, it’s hard to be really optimistic about equities,” Siegel said.

But Siegel is more optimistic about 2024 and 2025, saying stock valuations look good over the long term.

“I don’t think long-term holders should be intimidated,” Siegel said.

The professor has criticized the Fed for not taking into account the delayed impact of rate hikes. He also said that OPEC+ countries’ production cuts should not be a big problem for inflation.

“Saudi Arabia did this to offset fears of a recession caused by the Fed tightening too much.

— Jesse Pound

An unexpected production cut by OPEC+, which has cut production by 1.16 million barrels per day, has sent oil prices skyrocketing. West Texas Intermediate crude futures rose 6% to about $80 a barrel, marking his biggest one-day gain since April 12, 2022.

Meanwhile, Brent futures rose more than 6% to $84.79 per barrel.

WTI reached $81.69 per barrel at one point in the session, its highest since January of this year.

— Brian Evans, Nick Wells

Check out the companies making headlines before Wednesday’s bell.

• Energy Stocks — Energy stocks were broadly higher on Monday after OPEC surprised markets by announcing production cuts. This has led some analysts to warn that oil prices could reach $100 a barrel. Marathon Oil he rose 7.4%, while Halliburton, APA and Occidental Petroleum each rose more than 6%.
• Extra Space Storage, Life Storage — Extra Space Storage has announced that it will acquire Life Storage for $145.82 per share in an all-stock transaction. The transaction creates a storage unit operator with a pro forma market capitalization of approximately $36 billion and an enterprise value of approximately $47 billion. The transaction is expected to close in the second half of 2023. After the announcement, Xtraspace’s stock fell 5.6%. Life Storage shares rose about 1.6%.
• World Wrestling Entertainment — WWE stock fell 6% on news that UFC’s parent company, the Endeavor Group, would spin off the UFC and merge with WWE in a deal worth $21 billion. CNBC first reported news of the potential deal on Sunday.

Read here to see which other companies are working before opening.

— Pia Singh

Endeavor, the parent company of Ultimate Fighting Championship, is nearing a deal to acquire Vince McMahon’s World Wrestling Entertainment.

The deal will merge both the UFC and WWE into one publicly traded company. Endeavor will own 51% of his majority in the new company, while WWE shareholders will own 49% of him. This potential deal could value WWE in excess of $9 billion.

McMahon’s professional wrestling empire had been looking for a buyer for several months, and his return as chairman meant he was at the forefront of the process.

WWE shares fell about 9% in pre-market trading on Monday following the news. WWE is up 33% year-to-date.

— Brian Evans

Traders at JPMorgan said on Monday that the market was overlooking the banking crisis that engulfed Wall Street in late March.

“Given the rebound in risky assets, the market appears to have emerged from the banking crisis and returned to a macro trading environment,” the traders wrote in a report. “Without the Federal Reserve Board meeting in April, there will be more focus on data printing in April as we start earning in less than two weeks.”

Monday was the first trading day of the second quarter and the S&P 500 posted a strong first quarter gain.

— Fred Imbert, Michael Bloom

Morgan Stanley analyst Andrew Percoco launched the Sunnova stock offering with an overweight rating and a price target of 100% or more upside.

“We like NOVA’s exposure to a highly under-penetrated market with strong long-term growth prospects, expanded product and service offerings, and discounted pricing,” Percoco said in a note to clients on Monday. There are,’ he said.

Indeed, Percoco said the stock price rally may not be smooth.

CNBC Pro subscribers can read the full story here.

— Fred Imbert

European markets were mixed on Monday as oil markets took notice after abrupt production cuts by the OPEC+ alliance, a group made up of OPEC members such as Saudi Arabia and major non-OPEC oil producers such as Russia. bottom.

The pan-European STOXX 600 index was flat before and after the market opened, with sectors and major exchanges spanning modest gains and losses.

Oil and gas stocks led the gains, up 3.9%, while travel and leisure fell 1%.

— Hannah Ward Glenton

Analysts expect oil prices to rise by up to 20% after OPEC’s surprise production cut of 1.16 million barrels per day.

CMC Markets analyst Tina Teng told CNBC: “OPEC+’s plan to cut further production will push oil prices back into the $100s, given China’s reopening of the economy and Russia’s production cuts as retaliation for Western sanctions. It can be pushed up,” he said.

Last October, the oil cartel announced it had decided to cut production by 2 million barrels per day.

“But unlike [the cut in October]global oil demand momentum is rising, not dipping, on China’s strong recovery,” Goldman Sachs said in a report.

That could lift Goldman’s Brent forecast by $5 a barrel to $95 a barrel in December 2023, the investment bank said in a report after an unexpected overnight decision. rice field.

— Lee Yingxiang

Crude oil futures surged 8% at the opening after OPEC Plus members announced production cuts totaling more than 1 million barrels per day through the end of 2023.

Brent crude futures were last up 5.98% to $84.67 a barrel, while US West Texas Intermediate Crude Oil (WTI) rose 6.04% to $80.24 a barrel.

This comes after oil prices rallied last week, posting a week-to-date gain of more than 9%.

IG’s Tony Sycamore said the latest announcement “is an unwelcome start to a new week for risk markets and policymakers who are still dealing with persistent inflation and the impact of the recent banking crisis.” .

National Australia Bank added that the unexpected announcement is likely to put pressure on European economies, where core inflation rose slightly last month.

The Wall Street Journal reports that McDonald’s is preparing to lay off workers this week and will temporarily close its offices.

The fast-food giant is reportedly planning to virtually notify employees about their work status this week.

— Jesse Pound

Tesla on Sunday reported that it delivered 422,875 vehicles in the first quarter.

The result topped the 310,048 deliveries reported in the same quarter last year and the 405,278 reported in the fourth quarter. Sales rose even after electric car makers cut prices.

As of Friday, Wall Street analysts are estimating deliveries in the range of 410,000 to 451,000, according to FactSet. The average estimate was 432,000.

— Jesse Pound

Oil futures surged Sunday night after Saudi Arabia and other OPEC+ members announced unexpected production cuts.

Reuters reports that production costs will total about $1.16 million, on top of previously announced reductions.

Futures on US benchmark West Texas Intermediate crude and European benchmark Brent crude each rose about 7%.

— Jesse Pound

Tech stocks and the Nasdaq were the stars of the first quarter, while banking stocks weighed on the broader market. Here are some of the notable stats for the first three months of 2023.

NASDAQ Composite:

• 16.77% increase
• Recorded a 4/4 losing streak
• Still 24.61% below record high

Dow Jones Industrial Average:

• increased by 0.38%.
• Still 9.95% below all-time high

S&P 500:

• 7.03% increase
• Still 14.72% below all-time high

— Jesse Pound, Christopher Hayes

Nasdaq 100 and S&P 500 futures started trading slightly lower on Sunday evening. Dow futures were flat.

— Jesse Pound

CNBC’s Alex Sherman reported on Sunday that sports entertainment company WWE is nearing a deal to merge with Endeavor.

The deal would value WWE at more than $9 billion and would give Endeavor shareholders a 51% stake in the combined company, sources told Sherman. Endeavor is the parent company of the martial arts league UFC.

WWE is entering a sales block after a string of scandals involving its longtime CEO Vince McMahon. The stock is up 33% year-to-date.

The deal could also be announced on Monday.

— Jesse Pound