Major Indexes End Mostly Lower as Oil Surges Even Though IEA to Release 400M Barrels of Reserves

CF Industries Stock Soars; Fertilizer Producer Stands to Benefit From Strait of Hormuz Disruptions

FROM 1 hr 1 min ago

CF Industries is the top-performing stock in the S&P 500 Wednesday afternoon. It has Strait of Hormuz shipping disruptions to thank.

Shares of CF Industries (CF) soared 8.5% to lead the benchmark index with less than an hour to go in the trading day.

The Northbrook, Ill.-based fertilizer manufacturer stands to benefit from rising prices as nearly 50% of global urea exports and global sulfur exports originate from countries west of the Strait and transit through the Strait of Hormuz, The Fertilizer Institute said. Shipping through the strait has essentially halted due to fighting in the Middle East.

CF Industries shares are up about 55% year-to-date.

This AI Infrastructure Stock Is Surging After a $2 Billion Investment From Nvidia

FROM 1 hr 32 min ago

Nebius shares are soaring Wednesday on a vote of confidence from AI chip leader Nvidia.

Shares of Nebius Group (NBIS) were up over 16% in recent trading, after the AI infrastructure firm announced a partnership that includes a $2 billion investment from Nvidia (NVDA). Nvidia shares were little changed.

The companies said the deal will build on Nebius’ existing partnership with Nvidia to expand cloud capacity to support AI. “Together, we are scaling the cloud to meet the surging global demand for intelligence,” Nvidia CEO Jensen Huang said in a release.

Nvidia first revealed a stake in Nebius in its quarterly 13-F filings last February. It has held that stake in Nebius steady even as it sold positions in some other tech stocks in recent quarters.

The chipmaker’s latest investment in Nebius adds to a string of recent deals. Earlier this month, Nvidia also announced $2 billion investments in Coherent (COHR) and Lumentum (LITE).

With Wednesday’s gains, Nebius shares have added close to a third of their value since the start of the year, and nearly quadrupled in the last 12 months.

–Aaron McDade

A Move to Release Millions of Barrels of Oil Hasn’t Kept Oil Prices Down

FROM 1 hr 53 min ago

A global energy watchdog rode to the rescue. The oil market shrugged.

The International Energy Agency and its member countries on Wednesday said it would tap its reserves and distribute 400 million barrels of crude—its biggest ever distribution, double the 2022 release that followed Russia’s invasion of Ukraine. Crude oil prices, however, ticked higher after the IEA announcement, with Brent crude and West Texas Intermediate up about 5% to around $92 and $86 per barrel, respectively. Energy stocks, including those of including oil majors Exxon (XOM) and Chevron (CVX) were also higher, while U.S. broad market indexes were recently in decline. (Oil futures, to be sure, are off three-digit highs seen earlier this week.)

Escalating tensions in Iran appear to be weighing on investor optimism that the war will be brief, and disruptions to oil supply transitory. Meanwhile, market experts and economists are warning about the consequences of higher-for-longer crude prices as vessels are trapped in the Persian Gulf, ships have been attacked in the Strait of Hormuz, and neither Iran nor Israel have made concrete movements toward a truce.

Prediction markets are signaling expectations that the war will go on for at least six more weeks and crude prices will stay high. Polymarket bettors put the highest probability, about 78%, that the Iran-U.S./Israel war will be over by the end of June. They also put the highest probability, or 31%, on West Texas crude topping $95 by the end of this week. 

Some historic parallels, like the Ukraine-Russia war, would suggest that peak oil prices are over and done with, according to Adam Turnquist, Chief Technical Strategist for LPL Financial.

Read the full article here.

–Crystal Kim

An Important Investor Has an Idea for CarMax: Charge Less for Used Cars

FROM 2 hr 26 min ago

An activist investor has an idea for selling more used cars: charge less for them.

Shares of CarMax (KMX) were recently up about 2%, after rising as much as 8% earlier Wednesday following news that activist firm Starboard Value had nominated two directors to the used-car seller’s board. In a letter to incoming CarMax CEO Keith Barr, who was named last month and is set to take over in a few days, the firm offered support for the company’s new chief but also said its “recent performance has fallen well short of its underlying potential.” CarMax shares are up this year but off more than 40% over the past 12 months, while competitor Carvana’s (CVNA) stock has raced higher.

Starboard’s suggestions included updating the company’s digital trade-in experience; reduce reconditioning costs; and focusing further on cost controls. But it also suggested something comparatively straightforward: trimming prices. Starboard believes the company’s per-unit gross profit targets have been “too rigid,” hurting market share, and it suggested reducing prices by $100 to $300 per vehicle and using a data-driven pricing system more attuned to local markets.

“Make no mistake,” Starboard wrote. “We expect you to remain disciplined and expect you to protect and expand margins. That being said, the market has become more transparent, which may require more dynamic pricing to maintain transaction volume.”

Read the full article here.

–David Marino-Nachison

Fair Isaac Leads S&P 500 Decliners After $1B Senior Notes Offering

FROM 3 hr 23 min ago

Fair Isaac (FICO) is looking to pay down its debt. Its investors evidently are not pleased.

Fair Isaac shares led S&P 500 decliners Wednesday, pulling back 10% in recent trading, after the credit score issuer said it was offering $1 billion in senior notes.

The Bozeman, Mont.-based firm said it intends to use the proceeds, in part, “to repay certain indebtedness outstanding under its existing unsecured revolving credit facility.”

Shares of Fair Isaac have lost more than 30% of their value this year. They have dropped more than 20% this week as rivals Equifax (EFX), Experian, and TransUnion (TRU) lowered pricing for their VantageScore 4.0 product, which competes with FICO scores to assess creditworthiness.  

These Experts Say Oracle’s Latest Results Are a ‘Huge Relief’ for the Tech Sector

FROM 4 hr 30 min ago

Can Oracle’s strong results breathe more confidence back into the AI trade?

Oracle (ORCL) shares were up over 13% in recent trading, leading other tech stocks higher, a day after the company posted better-than-expected earnings and lifted its revenue outlook for fiscal 2027.

Wedbush analysts said Oracle’s results come as a “huge relief” for the tech sector, considering recent worries about the industry’s ability to deliver on its hefty investments in AI infrastructure.

Read the full article here.

–Aaron McDade

Energy Is Top-Performing S&P 500 Sector Wednesday

FROM 5 hr 22 min ago

It’s been a relatively directionless first hour-plus of trading for the S&P 500 thus far Wednesday, but that’s not the case for energy shares.

The S&P 500 Energy Sector easily was the top performer for the benchmark index in early trading, up some 1.8%.

Valero Energy (VLO), Marathon Petroleum (MPC), and Phillips 66 (PSX) paced the sector with respective gains of about 5%, 4.5%, and 4%.

Energy shares were aided by the price of oil, which rose 4% in recent trading to near $87 a barrel.

Five of the 11 sectors tracked by the index were in the green, but the next-biggest gain sat at near 0.5%, by Consumer Discretionary shares.

Gas Prices Have Jumped Since the Iran War Began, But Is It Enough to Keep Americans Off the Roads?

FROM 6 hr 14 min ago

Gas prices are up sharply since the start of the Iran war, but experts say they have a ways to go before Americans start canceling roadtrips and trading in their SUVs for EVs. 

The price of a gallon of gas at Casey’s General Store (CASY) has risen about 30 cents since the war in Iran began, putting the chain’s average fuel price “in the low $3 a gallon range,” said CEO Darren Rebelez in the company’s quarterly earnings call on Monday evening. “That’s still 30 cents below the starting point when the Ukraine war began,” Rebelez added. “So, we’re actually sitting in a really low position.”1

Oil and gas prices have soared since the U.S. and Israel began strikes against Iran late last month. Crude oil on Sunday jumped above $100 a barrel for the first time since Russia invaded Ukraine in 2022. Prices moderated Monday and were down 8% Tuesday afternoon as world leaders mulled ways to ease the oil supply crunch stemming from Iran’s closure of the Strait of Hormuz, a vital link in the global energy supply chain. 

Read the full article here.

–Colin Laidley

Inflation Stayed Steady Ahead of Iran War

FROM 6 hr 51 min ago

A key measure of inflation stayed steady in February before the war in Iran sent gas prices soaring.

The cost of living as measured by the Consumer Price Index rose 2.4% over 12 months in February, the Bureau of Labor Statistics said Wednesday. That was the same annual increase as in January and matched forecasts from a survey of economists by Dow Jones Newswires and The Wall Street Journal. “Core” prices, excluding the volatile categories of food and energy, rose 2.5% over the year, also the same as the previous month and in line with expectations.

The report showed inflation’s trajectory remained steady ahead of the war in Iran, which has driven national average gasoline prices up by more than 50 cents a gallon over the last two weeks. Fighting has disrupted shipping from the oil-producing region.

Inflation has stubbornly remained above the Federal Reserve’s 2% annual target as tariffs have pushed up prices for some goods, even as housing inflation has cooled. Inflation surged in late 2021 as the economy reopened from COVID-19 restrictions and has yet to cool down to pre-pandemic levels.

–Diccon Hyatt

Apple’s Newest Phone and Laptop Are More Budget-Friendly. Premium Products Could Be Next

FROM 6 hr 59 min ago

Apple’s latest product strategy isn’t about cutting-edge technology. It’s about being more—and less—affordable.

The iPhone maker last week announced a series of more affordable devices, including the MacBook Neo and iPhone 17e. ButApple (AAPL) is also working on a lineup of premium products that could come next, according to a weekend Bloomberg report. Apple did not respond to Investopedia’s request for comment in time for publication.

While Apple announced updates to its MacBook Air and Pro lineups, as well as a new iPad Air, it’s the budget-friendly MacBook Neo and iPhone 17e that have so far drawn the most attention from analysts and reviewers.

At about $600, some early reviews have suggested Apple’s MacBook Neo could give many of its PC rivals a run for their money. At a time when a number of PC vendors are raising prices, analysts at Goldman Sachs recently wrote, the move could help win Apple new users who might otherwise have shopped brands like Dell (DELL), Lenovo and HP (HPQ).

Read the full article here.

–Kara Greenberg

Oracle Boosts Outlook Amid Huge AI Demand. The Stock Is Surging

FROM 7 hr 28 min ago

Oracle turned in a strong quarter and raised its long-term outlook on strong AI demand. Will it be enough to bring its stock out of its slump?

Shares of Oracle were up about 9% in extended trading after the company said it had an “exceptional” quarter, in what could point to the start of a reversal in its recent decline.

Oracle posted adjusted earnings per share of $1.79 on a 22% year-over-year jump in revenue to a record $17.2 billion for the company’s fiscal third quarter. Both figures topped analysts’ estimates compiled by Visible Alpha.

Meanwhile, the company’s backlog more than quadrupled to a record $553 billion. Oracle said most of the growth “related to large scale AI contracts,” and that it doesn’t expect to have to raise any incremental funds to service those agreements.

Looking ahead, Oracle raised its revenue outlook for fiscal 2027 to $90 billion. It kept its 2026 guidance steady at $67 billion.

Read the full article here.

–Kara Greenberg

Campbell’s Stock Drops on Lowered Outlook Due to Snacks Weakness

FROM 8 hr 18 min ago

The Campbell’s Company (CPB) sees near-term weakness in its Snacks business. Investors are selling the stock.

Campbell’s shares fell 4% in premarket trading Wednesday after the company, known for its namesake soup brand, reported weaker-than-expected fiscal 2026 second-quarter results and lowered its full-year outlook.

The Camden, N.J.-based firm reported adjusted earnings of $0.51 per share on net sales that declined 5% year-over-year to $2.56 billion. Analysts polled by Visible Alpha had expected $0.57 and $2.61 billion, respectively.

The results “fell short of our expectations due to weaker-than-expected performance in Snacks and storm-related shipment disruptions,” CEO Mick Beekhuizen said. “To stabilize Snacks, we are taking decisive action, focused on sharpening our value, new product innovation and in-market execution. We are also accelerating cost-saving initiatives to mitigate cost headwinds and support continued investment in our brands.” 

In addition, “largely driven by the near-term outlook for our Snacks business and select incremental trade investments,” the company lowered its full-year guidance “to reflect a more cautious view for the balance of the year.” It now sees adjusted EPS of $2.15 to $2.25, down from $2.40 to $2.55, and organic net sales down 2% to 1%, from the prior range of down 1% to up 1%.

Campbell’s shares entered the day down 40% over the past 12 months, including 11% since the start of the year.

Cintas Acquiring UniFirst for $5.5B

FROM 8 hr 44 min ago

Cintas’ latest offer to buy UniFirst proved acceptable to its rival in the workplace-uniform space.

Shares of UniFirst (UNF) soared 9% in premarket trading Wednesday after the firm agreed to be acquired by Cintas (CTAS) for $310.00 per share in cash and stock.

The deal, which has an enterprise value of about $5.5 billion, is seen closing in the second half of calendar 2026, the companies said.

“The UniFirst Board of Directors is pleased to have reached an agreement with Cintas that maximizes value for our shareholders and provides the opportunity to participate in the compelling future upside of the combined company,” board chair Joseph Nowicki said.

In January 2025, after several attempts to acquire UniFirst, Cintas submitted a proposal to acquire the Wilmington, Mass.-based company for $275.00 per share in cash, but it terminated discussions two months later after CEO Todd Schneider said the Cincinnati-based firm was “unable to have substantive engagement with UniFirst regarding key transaction terms.”

UniFirst shares, which closed near $258 yesterday, had added a third of their value year-to-date entering Wednesday’s session. Cintas shares, which slipped 2% before the bell, entered the day up about 4% this year.

Stock Futures Little Changed Ahead of Consumer Inflation Data

FROM 9 hr 27 min ago

Futures contracts connected to the Dow Jones Industrial Average pointed 0.1% lower.

S&P 500 futures were near flat.

Nasdaq 100 futures also were little changed.