After a romp on Wall Street last Friday, stocks are subdued in the early going today. Treasuries, gold, and silver are flat, while the dollar is higher. Crude oil is the big story, up about 1.5% at last check.
On the news front...
Oil was the big story this weekend, with Saudi Arabia deciding to cut another 1 million barrels per day in output. The decision came out of an OPEC+ meeting in Vienna, one where most other members also agreed to keep existing production cuts (which totaled 1.6 million BPD) in place through the end of the year.
While crude oil prices initially popped 5% on the news, they have given up about half that gain since. Ideally, the Saudis would like to see oil in the $80s somewhere versus the low-$70s like it is now.
As for interest rates, we’re just over a week out from the next Federal Reserve meeting. Most reports suggest the Fed will skip this meeting, preferring to watch incoming data and then hiking later in the summer if necessary. Wall Street is rolling back bets on future rate cuts, though, given the ongoing strength in recent economic data.
Apple (AAPL) is holding its annual World Wide Developers Conference (WWDC) today in Cupertino, and the tech giant is set to unveil a new Reality Pro headset. The augmented/virtual reality headset will reportedly cost around $3,000, putting it well above the cost of competitors like Meta Platforms’ (META) Quest 4 (it goes for approximately $500). Apple will also be releasing a new version of its iOS operating system.
Reports out of Ukraine suggest the nation’s long-awaited counteroffensive may be getting underway. Artillery and ground assaults are being reported along the front lines in southern and eastern Ukraine.
