NEW YORK (AP) — Stocks that moved heavily or traded substantially on Monday:
Fluor Corp., up 75 cents to $11.99.
The engineering and construction company is selling its EQIN professional equipment rental business to VE Partners.
Intercept Pharmaceuticals Inc., down $30.79 to $46.70.
The Food and Drug Administration declined to approve the biotechnology company’s liver disease drug.
Coty Inc., up 56 cents to $4.74.
The owner of Clairol and CoverGirl is spending $200 million for a 20% stake in Kim Kardashian’s cosmetics brand.
Heron Therapeutics Inc., down $5.56 to $14.26.
The Food and Drug Administration declined approval for the biotechnology company’s postoperative pain drug.
The Boeing Co., up $24.48 to $194.49.
The FAA gave the OK for the jet maker to begin test flights of its troubled 737 MAX, according to media reports.
BP Plc., up 72 cents to $23.48.
The oil and gas company sold its global petrochemicals business to Ineos for $5 billion.
Gilead Sciences Inc., down 1 cent to $74.56.
The biotechnology company will charge $2,340 in certain countries for a drug shown to quicken recovery time for severely ill COVID-19 patients.
BioNTech SE, up $3.67 to $65.80.
The German biotechnology company is raising $250 million through private investments.
Companies Mentioned in This Article
5 Oil Stocks That May Not Survive the Current Crisis
What would you think of the long-term prospects of a business that paid you to buy their products? That’s an oversimplification of what occurred to the May futures contract for oil on April 20. The price for that contract sold for a negative price for the first time in history.
The crisis befalling the oil companies at this time can best be described as “only the strongest survive.” There’s just no way the oil companies can possibly handle month after month of rock-bottom oil prices.
The problem is almost comically simple to understand. There is a massively reduced demand for oil as millions of Americans are following mitigation orders ranging from social distancing guidelines to more restrictive shelter in place orders. At the same time, the market is trying to absorb the oversupply of oil that came from Russia and Saudi Arabia.
However, when the year started, things looked like it might be business as usual for oil producers. The U.S. economy was humming along and there was talk that the second half of the year might finally bring the boost to oil prices that many companies badly needed.
However, since the middle of February, the bottom has dropped out of the market in general, and oil prices have been one of the main sectors to feel the impact.
Initially, investors tried to remain optimistic. A month ago, investors thought that the economy might be reopening sooner rather than later. However, the exact timing of the reopening is about as fluid as a barrel of oil. And with it looking more likely that there will be more demand destruction at least through May, there’s very little to prop up the stock of any oil companies.
And that means that, in all likelihood, there will not be room left for some oil companies. We’ve highlighted five oil stocks that have a strong probability of not surviving the chaos surrounding the coronavirus and our nation’s response.
View the “5 Oil Stocks That May Not Survive the Current Crisis”.