Constellation Energy Down After Regulatory Ruling

44 minutes ago

Shares of Constellation Energy (CEG) tumbled Monday morning despite an earnings beat as a recent regulatory decision dragged nuclear energy stocks.

Constellation posted $6.55 billion in revenue for the third quarter, up about 7% year-over-year, while profits rose to $1.2 billion. The company lifted the bottom end of its projected range for full-year adjusted earnings per share (EPS), expecting the metric between $8.00 and $8.40, up from $7.60 to $8.40 previously.

However, Constellation shares were down about 10% late Monday morning as a Friday decision from the Federal Energy Regulatory Commission raised concerns about the nuclear energy industry. The agency ruled against a partnership between Amazon (AMZN) and Talen Energy (TLN) that would see an Amazon data center receive additional power from a nearby Talen nuclear facility, according to Reuters.

The panel's members, Reuters reported, said the agreement could limit power and raise prices to residents in the surrounding area. Talen, Constellation, and other nuclear stocks fell Monday as markets grappled with whether nuclear partnerships with Big Tech companies can survive similar challenges.

Constellation announced a deal with Microsoft (MSFT) last month to restart one unit of the Three Mile Island nuclear power plant in Pennsylvania to provide power for Microsoft’s data centers and AI efforts.

Despite Monday's sharp decline, Constellation shares have doubled in 2024 amid optimism about growing AI-fueled demand for power.

–Aaron McDade

Crude Oil Prices Rise as OPEC+ Extends Output Cuts

1 hr 57 min ago

Crude oil futures were up more than 2% this morning after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday extended their output cuts by one month.

Saudi Arabia and other members of OPEC+, which includes Russia, said they agreed to keep voluntary production cuts of around 2.2 million barrels per day for one month until the end of December. The output cut had already already been extended in September

It didn’t give a reason for the decision to delay unwinding its voluntary cuts, but oil prices have been weak this year despite escalating tensions in the Middle East, pressured by China’s downbeat economy.

Last month, OPEC reduced its outlook for oil demand for 2024 and 2025, citing data received so far this year.

"This delayed supply increase means that maybe the group are more willing to support prices than many believe," ING said in a note referring to reports that some OPEC+ members weren't complying with the output cuts. "However, our balance continues to show that the market will be in surplus through 2025 unless OPEC+ continues with cuts through next year."

–Nisha Gopalan

Sherwin-Williams Levels to Watch After News of Dow Inclusion

3 hr 48 min ago

Shares in paint maker Sherwin-Williams (SHW) were up nearly 5% ahead of the bell  following news late Friday that the company will be included in the Dow Jones Industrial Average.

The stock broke out above a cup and handle pattern in mid-August, but has recently retraced towards the initial breakout point, potentially leading to a retest of the pattern's upper trendline.

Investors should watch key support levels on Sherwin-Williams' chart around $348 and $283, while also monitoring a measured move bullish price target at $503.

Read the full technical analysis piece here.

–Timothy Smith

Major Index Futures Little Changed

4 hr 19 min ago

Futures tied to the Dow Jones Industrial Average were fractionally lower.

S&P 500 futures were up 0.1%.

Nasdaq 100 futures were down less than 0.1%.

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