© Reuters.
By Yasin Ebrahim
Investing.com — The S&P 500 rose a bit more in choppy trading on Monday, as the energy-led rally in stocks was held in check by technology weakness.
They rose 0.2%, added 1% or 315 points, and lowered them 0.6%.
Energy stocks rose on rising oil prices after the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, unexpectedly cut oil production by 1 million barrels per day.
The cut is expected to help tame overall crude supplies at a time when many have been weighing the macroeconomic impact on oil demand following the recent turmoil at banks.
“While today’s surprise OPEC+ cut helps tighten balance sheets, it does not necessarily remove the risk of fear of the macro unknown,” RBC said in a note.
APA Corporation (NASDAQ:), ConocoPhillips (NYSE:), and marathon oil Corporation (NYSE:) were among the biggest gainers with the latter more than 9%.
Technology, which gained around 20% in the first quarter, took a breather, pressured by weakness at Microsoft Corporation (NASDAQ:), while chip stocks were also in the red.
Tesla (NASDAQ:), meanwhile, was also a major drag on the market after falling more than 6% as the EV maker announced total first-quarter deliveries of 422,900, beating estimates of 421,500 as recent cuts of prices boosted the demand.
While the Model Y/3 price cuts implemented in early 2023 “have paid significant dividends” for Tesla, Wedbush says, the impact on margins will come under close scrutiny.
“The big question will be margins, as the price cut will have an impact on this front, although we believe that Auto GM above 20% remains the key threshold in the coming quarters,” Wedbush said.
In deal news, World Wrestling Entertainment (NYSE:) confirmed its merger with the UFC to create a combat sports company controlled by parent company Endeavor (NYSE:). The deal valued WWE at $9.3 billion and the UFC at $12.1 billion.
On the economic front, US manufacturing activity came in below economic estimates, although some called them positive, including continued signs of disinflation in goods.
It fell to 46.3 in March from 47.7 the previous month, while the index fell to 49.2 from 51.3, showing that “the disinflationary trend in the goods sector also remains intact,” Jefferies said.
