Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and North Africa. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; and vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

Occidental Petroleum has strong profitability and a noticeably improved balance sheet, but the valuation no longer looks cheap across all metrics at once. A P/E ratio of 9.43, below the industry median, supports the idea of undervaluation; however, the P/S ratio is nearly half again as high as the industry level, while P/FCF is only around normal, so the multiples give a mixed signal overall. P/B is below the median, and the debt burden measured by debt/equity has declined to 0.39, which looks solid for a capital-intensive oil and gas business. Liquidity has also improved: the current ratio has risen to 1.41, the quick ratio is holding around 1.13, and cash on hand has increased to $4.15 billion, reducing short-term risk. At the same time, the dividend yield of about 0.46% remains very low and has declined over recent periods, so the dividend factor does little to support a re-rating of the stock. The efficiency picture is mixed: net profit margin, operating margin, and gross margin are above industry benchmarks and have improved significantly over the years, but ROE and ROA are still below the median, limiting any valuation premium. ROI looks stronger than the market and confirms that capital and assets are being used better than in many peers. Revenue, gross profit, and net income in TTM are high, and net income and EPS are well above industry levels, which points to strong current cash generation in the business. At the same time, operating income looks less convincing relative to strong revenue, so the quality of operating leverage is not ideal. Equity has increased, while liabilities and debt have decreased, supporting a more resilient company profile. Overall, the fundamentals justify a moderately positive view, but not an aggressive target increase, because part of the multiples already reflects improved quality, and the dividend plus returns on assets/equity do not provide strong additional upside. For an investor, this means the stock looks fundamentally solid, but the re-rating potential is limited by the cyclicality of the oil sector and the already decent current valuation level.

Occidental Petroleum Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Медведи в растерянности.

Strong index, slightly down. The bears are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно упал. Рынок не поддерживает медведей.

Strong index, significantly down. The market does not support the bears.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

Сильный индекс, значительно упал. Отток средств из шортов резко увеличился и находится на высоком уровне.

Strong index, significantly down. The outflow of funds from shorts has increased sharply and is at a high level.

Strong profitability and balance sheet strength with low debt support OXY, but weak ROA/ROE, low dividend yield, and a high P/S limit upside.

Key Points
Right now, higher oil prices are certainly helping the Houston-based oil exploration company.
But debt reduction and rising cash flow are significant catalysts for investors to also consider.
High oil prices are a classic tailwind for energy stocks. Thanks to the war in Iran, that's exactly the scenario investors are facing this year, as energy ranks as the best-performing group among the 11 sectors represented in the S&P 500.
Undoubtedly, surging crude prices are playing a pivotal role in the 47% year-to-date gain sported by Occidental Petroleum (NYSE: OXY) shares. Amid a rally like that, you can't count on a dip, but as of Sept. 4, the stock trades 11% below its 52-week high. By definition, that's a correction, but prospective investors should note the shares are up 7.1% over the past month. That may be a sign the correction won't deepen.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
As for reasons to buy this dip, oil prices help, but don't lose sight of Occidental's scorched-earth campaign to reduce debt and its efforts to reduce costs.
Occidental is taking the ax to its liabilities
Investors just now getting to know Occidental may not realize that it's one of Berkshire Hathaway's major holdings. The stake was initiated when Warren Buffett was still captain of the conglomerate's ship, and the stock has been in rally mode since CEO Greg Abel took the reins at Berkshire.
The Berkshire/Occidental connection is noteworthy because Buffett is known to embrace companies with strong balance sheets and attractive cash-flow characteristics. Through the sale of its OxyChem unit to Berkshire (completed in January), Occidental pared its debt by $8.6 billion in the first half of 2026. At the end of the second quarter, the energy company's debt stood at $11.8 billion.
That sounds like a lot for a corporation with a market capitalization of $59 billion. Still, Occidental is within striking distance of its goal of getting the debt burden down to $10 billion. Realizing that goal is crucial because, with $10 billion in liabilities, the company saves $740 million in yearly interest expenses.
Obviously, companies have to pay interest on the capital they borrow, so it's not fair to say that Occidental is "squandering" money on servicing its debt. However, $740 million per year isn't small potatoes, and investors would be much better served if Occidental used that capital to invest in its business and potentially support shareholder rewards. An 8% quarterly dividend increase announced earlier this year confirms that as Occidental reduces debt, it does, in fact, reward investors.
Don't forget the cash flow
As Occidental makes good on its pledge to reduce liabilities, it evolves from a debt-cutting story to one where cash flow becomes another reason to consider the oil stock. Working on the assumption that West Texas Intermediate hovers around $95 a barrel for the remainder of 2026, S&P estimates Occidental will generate north of $10 billion in free operating cash flow this year, or more than triple the $3.2 billion it tallied in 2025.
The company is also prioritizing cost reductions, having trimmed costs by $2 billion since 2023, with another $500 million in store this year.
Importantly, cost cuts aren't a detriment to output. Despite taking some old rigs offline, Occidental can grow production 2% per year through 2028 thanks to a keen focus on operational efficiencies. Yes, that sounds like consultant jargon, but those efficiencies are part of the non-oil-price thesis underpinning this stock.
Should you buy stock in Occidental Petroleum right now?
Before you buy stock in Occidental Petroleum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Occidental Petroleum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

I'm Buying Occidental on This Dip -- Not Because of Oil, but Because of This

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Applovin Corp (Symbol: APP), where a total of 26,694 contracts have traded so far, representing approximately 2.7 million underlying shares. That amounts to about 53.7% of APP's average daily trading volume over the past month of 5.0 million shares. Particularly high volume was seen for the $290 strike put option expiring September 18, 2026, with 1,519 contracts trading so far today, representing approximately 151,900 underlying shares of APP. Below is a chart showing APP's trailing twelve month trading history, with the $290 strike highlighted in orange:
Occidental Petroleum Corp (Symbol: OXY) options are showing a volume of 36,733 contracts thus far today. That number of contracts represents approximately 3.7 million underlying shares, working out to a sizeable 52.2% of OXY's average daily trading volume over the past month, of 7.0 million shares. Especially high volume was seen for the $65 strike call option expiring October 16, 2026, with 14,132 contracts trading so far today, representing approximately 1.4 million underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $65 strike highlighted in orange:
And Freeport-McMoran Copper & Gold (Symbol: FCX) options are showing a volume of 71,332 contracts thus far today. That number of contracts represents approximately 7.1 million underlying shares, working out to a sizeable 50.6% of FCX's average daily trading volume over the past month, of 14.1 million shares. Especially high volume was seen for the $75 strike call option expiring September 18, 2026, with 15,323 contracts trading so far today, representing approximately 1.5 million underlying shares of FCX. Below is a chart showing FCX's trailing twelve month trading history, with the $75 strike highlighted in orange:
For the various different available expirations for APP options, OXY options, or FCX options, visit StockOptionsChannel.com.
Further APP Research:

Noteworthy Thursday Option Activity: APP, OXY, FCX

The S&P 500 Index ($SPX) (SPY) closed down -0.48% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.77%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.29%. E-mini S&P futures (ESU26) fell -0.46%, and September E-mini Nasdaq futures (NQU26) fell -0.30%.
Stock indexes retreated on Wednesday, with the Dow Jones Industrial Average falling to a 5-week low. The broader market was under pressure for a second day amid mounting inflation risks. WTI crude oil prices surged more than +3% today to a 3.25-month high amid escalating hostilities in the Middle East, heightening concerns about energy flows through the Strait of Hormuz. The surge in energy prices is boosting inflation expectations and pushing bond yields higher. The 10-year T-note yield rose to 4.85% on Wednesday, the highest in 2.75 years. The higher bond yields weighed on stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the positive side, chipmakers and AI-infrastructure stocks gained on Wednesday. Energy producers also rose on stronger crude oil prices.
The escalating trade war between the US and Canada is also weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
US MBA mortgage applications fell -2.7% in the week ended September 4, with the purchase mortgage sub-index down -0.2% and the refinancing mortgage sub-index down -6.2%. The average 30-year fixed-rate mortgage rose +6 bp to a 14-month high of 6.85% from 6.79% in the prior week.
Oct WTI crude oil prices (CLV26) surged more than +3% on Wednesday to a 3.25-month high due to the latest escalation of hostilities in the Middle East. The US destroyed five Iranian tankers carrying crude in response to two attempts by Iran to hit US Navy ships with ballistic missiles. Iran responded by firing missiles at a US air base in Jordan and warning ships in the Persian Gulf that they would be attacked. Iran also said on Wednesday that it is ready for a more intense war and will escalate counterstrikes if the US continues attacking its territory and infrastructure.
The markets are discounting a 61% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 fell to a 5-week low and closed down -1.58%. China's Shanghai Composite closed up +0.28%. Japan's Nikkei-225 Stock Average closed down -0.19%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -7.5 ticks on Wednesday. The 10-year T-note yield rose +4.5 bp to 4.833%. T-notes fell to a 20-month nearest-futures low on Wednesday, and the 10-year T-note yield rose to a 2.75-year high of 4.853%. T-notes are under pressure from higher crude oil prices, which are boosting inflation expectations, as WTI crude oil rose more than +3% on Wednesday to a 3.25-month high. T-notes added to their losses on Wednesday after the Treasury announced that it will buy back up to $6 billion in longer-dated US Treasuries, below expectations of at least $10 billion.
T-notes recovered from their worst level on Wednesday amid strong demand for the Treasury’s $39 billion auction of 10-year T-notes. The auction had a bid-to-cover ratio of 2.71, well above the 10-auction average of 2.49.
European government bond yields moved higher on Wednesday. The 10-year German bund yield climbed to a new 15-year high of 3.444% and finished up +7.8 bp on that high. The 10-year UK gilt yield rose +8.8 bp to 5.261%.
French July manufacturing production unexpectedly fell -0.8% m/m, weaker than expectations of a +0.4% m/m increase.
Markets are discounting a 100% chance of a +25 bp ECB rate hike at Thursday’s policy meeting.
US Stock Movers
Telecommunication and cable providers moved lower on Wednesday, led by a -6% fall in Comcast (CMCSA), which led losers in the Nasdaq 100 after CFO Armstrong said he sees no improvement in Q3 broadband subscriber losses. Charter Communications (CHTR) also fell more than 8%, and Verizon Communications (VZ) and AT&T (T) closed down more than 1%.
Chipmakers and AI-infrastructure stocks moved higher on Wednesday, limiting losses in the overall market. Marvell Technology (MRVL) closed up more than +4%, and Advanced Micro Devices (AMD) closed up more than +3%. Also, Micron Technology (MU) closed up more than +2%, and ARM Holdings (ARM), Western Digital (WDC), SanDisk (SNDK), Intel (INTC), Texas Instruments (TXN), and Qualcomm (QCOM) closed up more than +1%.
Energy producers and service providers rallied on Wednesday after WTI crude oil rose more than +3% to a 3.25-month high. APA Corp (APA) and ExxonMobil Holdings (XOM) closed up more than +2%. Also, Chevron (CVX), Devon Energy (DVN), Diamondback Energy (FANG), Occidental Petroleum (OXY), ConocoPhillips (COP), and Valero Energy (VLO) closed up more than +1%.
ServiceTitan (TTAN) closed down more than -29% after reporting a Q2 EPS loss of -26 cents, a bigger loss than the consensus of -25 cents.
Casy’s General Stores (CASY) closed down more than -14% to lead losers in the S&P 500 after reporting a Q1 gross margin of 21.8%, below the consensus of 22.3%.
Chewy (CHWY) closed down more than -10% after forecasting a sequential decline in Q3 gross margin, due to a timing shift as certain rebate benefits shifted from the second half of the year into Q2.
Smithfield Foods (SFD) closed down more than -6% after cutting its Q3 earnings outlook, citing “continued compression in the industry fresh pork market spread and lower hog prices.”
Dyne Therapeutics (DYN) closed down more than -5% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $10.
Booking Holdings (BKNG) closed down more than -3% after losing an EU court fight over its takeover of Sweden’s Etraveli Group, when a judge said regulators were right to conclude that the planned buyout threatened fair competition.
Chime Financial (CHYM) closed up more than +7% after boosting its full-year revenue forecast to $2.76 billion to $2.77 billion from a previous forecast of $2.73 billion to $2.75 billion, stronger than the consensus of $2.74 billion.
Meta Platforms (META) closed up more than +6% after analysts reported positive reviews of the company’s debut of Muse, an AI assistant.
HP Inc (HPQ) closed up more than +3% after announcing a pact with Red Hat on an AI platform.
Sysco (SYY) closed up more than +2% after raising its mid-term financial targets for fiscal years 2028 and 2029 to annualized net sales growth of 4% to 7%, up from a previous view of 4% to 6%.
Earnings Reports (9/10/2026)
Adobe Inc (ADBE), Copart Inc (CPRT), Macy's Inc (M), Oracle Corp (ORCL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Fall as Crude Prices Soar and Bond Yields Climb

The S&P 500 Index ($SPX) (SPY) is down -0.25% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.69%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.12%. E-mini S&P futures (ESU26) are down -0.92%, and September E-mini Nasdaq futures (NQU26) are up +0.11%.
Stock indexes are sliding today, with the Dow Jones Industrial Average falling to a 5-week low. The broader market is under pressure for a second day amid mounting inflation risks. WTI crude oil prices are up more than +3% today to a 3.25-month high amid escalating hostilities in the Middle East, heightening concerns about energy flows through the Strait of Hormuz. The surge in energy prices is boosting inflation expectations and pushing bond yields higher. The 10-year T-note yield rose to 4.85% today, the highest in 2.75 years. The higher bond yields are weighing on stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the positive side, strength in chipmakers and AI-infrastructure stocks supports the Nasdaq 100 index. Energy producers are also climbing today on stronger crude oil prices.
Also, an escalating trade war between the US and Canada is weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
US MBA mortgage applications fell -2.7% in the week ended September 4, with the purchase mortgage sub-index down -0.2% and the refinancing mortgage sub-index down -6.2%. The average 30-year fixed-rate mortgage rose +6 bp to a 14-month high of 6.85% from 6.79% in the prior week.
Oct WTI crude oil prices (CLV26) are up more than +3% today at a 3.25-month high due to the latest escalation of hostilities in the Middle East. The US destroyed five Iranian tankers carrying crude in response to two attempts by Iran to hit US Navy ships with ballistic missiles. Iran responded by firing missiles at a US air base in Jordan and warning ships in the Persian Gulf that they would be attacked.
The markets are discounting a 62% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell to a 5-week low and is down -1.65%. China's Shanghai Composite closed up +0.28%. Japan's Nikkei-225 Stock Average closed down -0.19%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -6 ticks today. The 10-year T-note yield is up +2.8 bp to 4.830%. T-notes fell to a 20-month nearest-futures low today, and the 10-year T-note yield rose to a 2.75-year high of 4.849%. T-notes are under pressure from higher crude oil prices, which are boosting inflation expectations, as WTI crude oil is up more than +3% to a 3.25-month high. Supply pressures are also weighing on T-note prices as the Treasury will auction $39 billion in 10-year T-notes later today. T-notes added to their losses today after the Treasury announced that it will buy back up to $6 billion in longer-dated US Treasuries, below expectations of at least $10 billion.
European government bond yields are moving higher today. The 10-year German bund yield climbed to a new 15-year high of 3.433% and is up +6.4 bp to 3.430%. The 10-year UK gilt yield is up +7.5 bp to 5.248%.
French July manufacturing production unexpectedly fell -0.8% m/m, weaker than expectations of a +0.4% m/m increase.
Markets are discounting a 100% chance of a +25 bp ECB rate hike at Thursday’s policy meeting.
US Stock Movers
Chipmakers and AI-infrastructure stocks are moving higher today, a positive factor for the overall market. Marvell Technology (MRVL) is up more than +5%, and Advanced Micro Devices (AMD) and Micron Technology (MU) are up more than +3%. Also, ARM Holdings (ARM), Western Digital (WDC), and SanDisk (SNDK) are up more than +2%. In addition, Intel (INTC) and Qualcomm (QCOM) are up more than +1%.
Energy producers and service providers are moving higher today, with WTI crude up more than +3% at a 3.25-month high. APA Corp (APA) is up more than +2%, and ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), ConocoPhillips (COP), and SLB Ltd (SLB) are up more than +1%. Also, Chevron (CVX) is up more than +1% to lead gainers in the Dow Jones Industrials.
ServiceTitan (TTAN) is down more than -30% after reporting a Q2 EPS loss of -26 cents, a bigger loss than the consensus of -25 cents.
Casy’s General Stores (CASY) is down more than -14% to lead losers in the S&P 500 after reporting a Q1 gross margin of 21.8%, below the consensus of 22.3%.
Chewy (CHWY) is down more than -7% after forecasting a sequential decline in Q3 gross margin, due to a timing shift as certain rebate benefits shifted from the second half of the year into Q2.
Smithfield Foods (SFD) is down more than -6% after cutting its Q3 earnings outlook, citing “continued compression in the industry fresh pork market spread and lower hog prices.”
Booking Holdings (BKNG) is down more than -4% to lead losers in the Nasdaq 100 after losing an EU court fight over its takeover of Sweden’s Etraveli Group, when a judge said regulators were right to conclude that the planned buyout threatened fair competition.
Dyne Therapeutics (DYN) is down more than -2% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $10.
Meta Platforms (META) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after analysts reported positive reviews of the company’s debut of Muse, an AI assistant.
Chime Financial (CHYM) is up more than +5% after boosting its full-year revenue forecast to $2.76 billion to $2.77 billion from a previous forecast of $2.73 billion to $2.75 billion, stronger than the consensus of $2.74 billion.
Dell Technologies (DELL) is up more than +3% after Evercore ISI raised its price target on the stock to $650 from $575.
Earnings Reports (9/9/2026)
AeroVironment Inc (AVAV), Chewy Inc (CHWY), Cooper Cos Inc/The (COO), Core & Main Inc (CNM), SailPoint Inc (SAIL), Sunbelt Rentals Holdings Inc (SUNB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks and Bonds Fall as Crude Oil Surges

The S&P 500 Index ($SPX) (SPY) is down -0.25% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.69%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.12%. E-mini S&P futures (ESU26) are down -0.92%, and September E-mini Nasdaq futures (NQU26) are up +0.11%.
Stock indexes are mostly lower today, with the Dow Jones Industrial Average falling to a 5-week low. The broader market is under pressure for a second day amid mounting inflation risks. WTI crude oil prices are up more than +2% today to a 3.25-month high amid escalating hostilities in the Middle East, heightening concerns about energy flows through the Strait of Hormuz. The surge in energy prices is boosting inflation expectations and pushing bond yields higher. The 10-year T-note yield rose to 4.82% today, the highest in 2.75 years. The higher bond yields are weighing on stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the positive side, strength in chipmakers and AI-infrastructure stocks is supporting the Nasdaq 100 index. Energy producers are also climbing today on the strength in crude oil prices.
Also, an escalating trade war between the US and Canada is weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
US MBA mortgage applications fell -2.7% in the week ended September 4, with the purchase mortgage sub-index down -0.2% and the refinancing mortgage sub-index down -6.2%. The average 30-year fixed-rate mortgage rose +6 bp to a 14-month high of 6.85% from 6.79% in the prior week.
Oct WTI crude oil prices (CLV26) are up more than +2% today at a 3.25-month high due to the latest escalation of hostilities in the Middle East. The US destroyed five Iranian tankers carrying crude in response to two attempts by Iran to hit US Navy ships with ballistic missiles. Iran responded by firing missiles at a US air base in Jordan and warning ships in the Persian Gulf that they would be attacked.
The markets are discounting a 64% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell to a 5-week low and is down -1.61%. China's Shanghai Composite closed up +0.28%. Japan's Nikkei-225 Stock Average closed down -0.19%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -3 ticks today. The 10-year T-note yield is up +0.8 bp to 4.810%. T-notes fell to a 2.75-year nearest-futures low today, and the 10-year T-note yield rose to a 2.75-year high of 4.816%. T-notes are under pressure from higher crude oil prices, which are boosting inflation expectations, as WTI crude oil is up more than +2% to a 3.25-month high. Supply pressures are also weighing on T-note prices as the Treasury will auction $39 billion in 10-year T-notes later today.
European government bond yields are moving higher today. The 10-year German bund yield climbed to a new 15-year high of 3.423% and is up +5.0 bp to 3.416%. The 10-year UK gilt yield is up +5.1 bp to 5.225%.
French July manufacturing production unexpectedly fell -0.8% m/m, weaker than expectations of a +0.4% m/m increase.
Markets are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Weakness in health insurance stocks is weighing on the broader market today. UnitedHealth Group (UNH)is down more than -5% to lead losers in the Dow Jones Industrials, and Centene (CNC) is down more than -4%. Also, Humana (HUM) and Molina Healthcare (MOH) are down more than -3%, and CVS Health Corp (CVS) and Elevance Health (ELV) are down more than -2%. In addition, Cigna Group (CI) is down more than -1%.
Chipmakers and AI-infrastructure stocks are moving higher today, a positive factor for the overall market. Marvell Technology (MRVL) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100. Also, ARM Holdings (ARM) is up more than +4%, and Advanced Micro Devices (AMD), Micron Technology (MU), and SanDisk (SNDK) are up more than +3%., In addition, Western Digital (WDC) is up more than +2%, and Qualcomm (QCOM) is up more than +1%.
Energy producers and service providers are moving higher today, with WTI crude up more than +2% at a 3.25-month high. APA Corp (APA), Baker Hughes (BKR), Diamondback Energy (FANG), ExxonMobil Holdings (XOM), Halliburton (HAL), Marathon Petroleum (MPC), Occidental Petroleum (OXY), and SLB Ltd (SLB) are up more than +2%, and Chevron (CVX) is up more than +2% to lead gainers in the Dow Jones Industrials. Also, ConocoPhillips (COP) and Devon Energy (DVN) are up more than +1%.
ServiceTitan (TTAN) is down more than -19% after reporting a Q2 EPS loss of -26 cents, a bigger loss than the consensus of -25 cents.
Casy’s General Stores (CASY) is down more than -17% to lead losers in the S&P 500 after reporting a Q1 gross margin of 21.8%, below the consensus of 22.3%.
Chewy (CHWY) is down more than -7% after forecasting a sequential decline in Q3 gross margin, due to a timing shift as certain rebate benefits shifted from the second half of the year into Q2.
Smithfield Foods (SFD) is down more than -6% after cutting its Q3 earnings outlook, citing “continued compression in the industry fresh pork market spread and lower hog prices.”
Booking Holdings (BKNG) is down more than -4% to lead losers in the Nasdaq 100 after losing an EU court fight over its takeover of Sweden’s Etraveli Group, when a judge said regulators were right to conclude that the planned buyout threatened fair competition.
Dyne Therapeutics (DYN) is down more than -3% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $10.
Chime Financial (CHYM) is up more than +7% after boosting its full-year revenue forecast to $2.76 billion to $2.77 billion from a previous forecast of $2.73 billion to $2.75 billion, stronger than the consensus of $2.74 billion.
Meta Platforms (META) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 after analysts reported positive reviews of the company’s debut of Muse, an AI assistant.
Dell Technologies (DELL) is up more than +5% after Evercore ISI raised its price target on the stock to $650 from $575.
Earnings Reports (9/9/2026)
AeroVironment Inc (AVAV), Chewy Inc (CHWY), Cooper Cos Inc/The (COO), Core & Main Inc (CNM), SailPoint Inc (SAIL), Sunbelt Rentals Holdings Inc (SUNB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Pressured as Inflation Fears Boost Bond Yields

The oil market is unlikely to return to normal levels anytime soon.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
*Stock prices used were the afternoon prices of Sept. 5, 2026. The video was published on Sept. 7, 2026.
Should you buy stock in Occidental Petroleum right now?
Before you buy stock in Occidental Petroleum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Occidental Petroleum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

With Oil Prices Soaring, Is Occidental Petroleum Stock a Buy Right Now?

Key Points
Williams is better insulated from volatile oil and gas prices than Oxy.
Its focus on natural gas and BTM systems makes it a great AI infrastructure play.
Occidental Petroleum (NYSE: OXY), the oil and gas giant more commonly known as Oxy, has been a major beneficiary of soaring oil prices this year. Oxy generates most of its revenue from its upstream exploration, drilling, and extraction business. When oil prices rise, Oxy and other upstream companies can grow their revenues much faster than their operating expenses.
To support its current capex and dividends, Oxy only needs WTI crude oil -- currently at $93 per barrel -- to remain above its $40-per-barrel breakeven price. Its free cash flow (FCF) also increases significantly as long as WTI stays above $60 per barrel. That's why Oxy's stock has rallied nearly 50% this year and beaten the S&P 500's (SNPINDEX: ^GSPC) 12% gain.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Oxy might still seem like an attractive investment as the Iran war drags on and oil prices remain high. But as September (historically the worst month for stocks) starts, I'd rather own a steady midstream pipeline stock as my main energy play instead of Oxy's oil-driven shares. That stock is The Williams Companies (NYSE: WMB), which accounts for about 3.2% of my portfolio.
Why are midstream companies more reliable than upstream ones?
Midstream companies build pipelines that transport crude oil, natural gas, and other resources. They charge upstream and downstream companies tolls to use that infrastructure. They're well-insulated from volatile commodity prices, since they only need the oil and gas to keep flowing through their pipelines to generate stable profits and cash flows.
Midstream companies still benefit from rising oil and gas prices, which drive higher volumes through their pipelines. But they struggle less than upstream companies when those prices decline, and they usually return most of their cash to their investors through dividends. That makes midstream stocks a great choice for conservative income investors.
Why is Williams superior to other midstream companies?
Many midstream companies are structured as master limited partnerships (MLPs), which blend a return of capital with their distributions to pay more tax-efficient yields. However, investors who hold shares in MLPs must file separate K-1 forms with their taxes every year. Williams operates as a conventional C corporation, so its dividends are reported on the standard 1099-DIV form.
Williams pays a forward dividend yield of 2.8%, which is higher than Oxy's 1.9% but significantly lower than the yields of many other midstream companies. However, Williams is also growing faster than many of its industry peers because it's more exposed to the cloud and AI markets.
Unlike many other midstream companies, which deliver a mix of crude oil, natural gas, and other resources, Williams primarily delivers natural gas. It transports approximately 30% of the country's natural gas through its Transco pipelines between Texas and the Eastern Seaboard. That natural gas "superhighway" powers nearly half of our domestic data centers.
It's also building "behind-the-meter" (BTM) systems at data centers to provide hyperscalers with a steady supply of natural gas that bypasses utility company bottlenecks. Setting up a grid-based natural gas connection can take four to seven years, while Williams can deploy a BTM system in just 18 to 24 months. Those advantages make Williams more of an AI infrastructure play than many other midstream companies.
Why is Williams a safe stock to buy in September?
September is typically a bad month for stocks because institutional investors rebalance their portfolios by pruning their winners and losers. That selling pressure can drive retail investors toward more conservative investments like Williams.
Williams' stock has already risen 25% year to date, but it still trades at less than 13 times next year's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Analysts expect its adjusted EBITDA to grow at a 7% CAGR from 2025 to 2028.
Its available funds from operations (AFFO) rose 17% year over year to $3.2 billion in the first half of 2026, easily covering its dividends with a 2.5x ratio. Therefore, it still has plenty of room to increase its dividend, which it has already raised annually for the past nine consecutive years. So if you want a cheap stock with a decent dividend, plenty of exposure to the AI boom, and can resist a downturn in oil prices, Williams checks all the right boxes.
Should you buy stock in Occidental Petroleum right now?
Before you buy stock in Occidental Petroleum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Occidental Petroleum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Leo Sun has positions in Williams Companies. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

Forget Occidental Petroleum. Buy This Pipeline Stock in September Instead.

Key Points
Berkshire Hathaway, after a lull, is showing some interest in putting its hoard of idle cash to work.
The conglomerate isn’t just considering new stocks for its equity portfolio.
Such a strategic shift makes sense because stocks carry a lot of risk relative to their long-term rewards.
Any prediction about any company's future acquisitions should be taken with a big grain of salt. This one is no different. Nobody truly knows what the future holds.
There are certainly reasonable, well-supported guesses about what's likely to transpire, though.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Enter Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB).
Although you may know it best for its portfolio of stocks handpicked by iconic investor Warren Buffett, that's not all Berkshire is. The conglomerate wholly owns a few dozen businesses, including GEICO Insurance, Duracell batteries, Shaw flooring, Pilot travel centers, Clayton Homes, and more. It also recently completed its acquisition of homebuilder Taylor Morrison, and in January closed on the purchase of OxyChem from previous owner Occidental Petroleum.
And the timing of these two recent outright purchases is telling. While it's certainly not unheard of for Berkshire to take a publicly traded company private, it is relatively rare. Now it's happened twice in less than a year, a period in which Buffett, as well as current Chief Executive Officer Greg Abel, have indicated there just aren't many stocks out there worth their price. (The one clear exception has been Alphabet, which is now Berkshire Hathaway's third-biggest stock holding.)
In light of how little has changed in equity markets in the meantime, it's a reasonably good bet that Abel is considering more acquisitions of undervalued companies rather than new positions in publicly traded ones. In fact, it's possible that at least one more could be announced before the end of 2026.
Private is making more and more sense compared to public
Outside of its insurance and energy businesses (where adopting a new name is relatively easy), the last major whole acquisition Berkshire made was its 2016 purchase of the aforementioned Duracell battery brand from Procter & Gamble. So again, outright acquisitions are relatively rare for Berkshire Hathaway.
One of Berkshire Hathaway's more compelling investment attributes, however, is its flexibility. It can focus on picking stocks when it makes sense. When it doesn't make sense, though, the conglomerate can change tack and opt for complete ownership.
And it's recently done so, and for good reason. On an inflation-adjusted basis, the market as a whole is very expensive right now. It would also be naïve to overlook that nearly every sliver of the market is at least somewhat affected by the artificial intelligence (AI) revolution that could live up to every lofty expectations, collapse, or end up somewhere in between these two extremes. The danger to investors is simply not knowing how any AI upheaval might shake out.
It's not just Berkshire Hathaway showing heightened interest in opportunities outside the conventional equity market, by the way. Hedge fund Pershing Square's (NYSE: PS) chief Bill Ackman is creating a new venture fund specifically meant to offer ordinary investors access to private companies planning to go public, while BlackRock (NYSE: BLK) is working on a way of adding modest exposure to privately owned businesses within workers' 401(k) plans. At the same time, interest in private credit and private equity investments through publicly traded companies such as Main Street Capital (NYSE: MAIN) and Brookfield Renewable Partners (NYSE: BEP) (NYSE: BEPC) continues to grow.
All this underscores a certain level of disillusionment with stocks as a whole. Greg Abel's likely seeing and feeling the same.
Then there's the possibility that the stock market itself may be entering a prolonged period of subpar returns. A recent outlook from brokerage firm Charles Schwab suggests large-cap stocks as a whole are only going to produce an average annual return of about 6% through 2036, less than half the average during the past decade, jibing with a prediction from mutual fund powerhouse Vanguard.
Given that outright ownership of entire companies means all of their cash flow trickles up to the parent organization's bottom line -- which isn't the case with stock ownership -- it's conceivable that wholly owning a cash-generating enterprise will bear more fruit for the foreseeable future than being a stockholder of most publicly traded companies.
Possible picks
As for which company (or companies) Abel might choose to wholly acquire next, that's even tougher to predict than whether he'll make any such deal at all. There are a handful of arguable prospects, though.
One of these possible targets is GATX (NYSE: GATX), which leases out its fleet of railroad cars. Although the stock's still within sight of April's record high, it's also reasonably valued at only about 17 times this year's projected per-share profits. Its business is also growing well despite economic headwinds and would mesh well enough with Berkshire's current railroad holding, BNSF. GATX is also simply affordable, with a market cap of a little more than $6 billion.
Or, if Abel wanted to stick with a well-proven approach, Berkshire could shell out roughly $23 billion of the $365.5 billion in cash it's currently sitting on and scoop up insurer Markel Group (NYSE: MKL) while its stock is down. It would certainly be a good cultural fit, as Markel is much like Berkshire Hathaway in that it owns a combination of handpicked publicly traded and privately held companies. It's even occasionally called a "Baby Berkshire."
If Berkshire were willing to think bigger, however, don't rule out a deal for Illinois Tool Works (NYSE: ITW). Although it would cost a hefty $77 billion or more, it would be an outstanding fit.
ITW is a decentralized conglomerate itself, and a successful one because it makes a point of remaining that way, leaving managers alone to let them run their businesses. It's also the kind of reliable cash cow that Buffett loves, with 63 consecutive years of per-share dividend growth.
Just be careful about any such speculations. If a complete acquisition is in the cards, we're not likely to guess it right.
But that's OK -- current Berkshire Hathaway shareholders don't need to worry too much about which deal Abel is likely to make next. Even if it's an acquisition of a publicly traded company at a premium valuation, Berkshire's investors will be the ultimate beneficiaries of any such deal.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 6, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. James Brumley has positions in Alphabet and Procter & Gamble. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, BlackRock, and Markel Group. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, Charles Schwab, Illinois Tool Works, and Occidental Petroleum and recommends the following options: short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.

Prediction: Greg Abel Announces Another Whole-Company Acquisition Before Year-End

Key Points
Renewed conflict in the Middle East is driving up energy prices.
Oil stocks could help investors safeguard their wealth.
The U.S. and Iran exchanged strikes, sparking a flare-up in hostilities that threatens to prolong the conflict in the Middle East.
The news drove oil prices higher, with Brent crude topping $90 as traders weighed the risk of further strikes disrupting vital shipping lanes through the Strait of Hormuz.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Many oil-related stocks rose in response, as investors sought shelter from the storm.
Here's how some of the leading energy stocks fared on Monday:
Higher oil prices are likely to drive these companies' earnings higher
SLB offers a wide range of services to the energy industry, such as well construction, reservoir management, and equipment maintenance. SLB operates globally in over 120 countries.
ExxonMobil is the largest publicly traded oil major, with leading positions in exploration, production, and refining. Exxon has the expertise and financial strength to take on complex projects that are beyond the means of most other businesses.
Like Exxon, Chevron is one of the biggest and best-run integrated oil and gas companies in the world. Notably, Chevron has a strong presence in Venezuela, a market whose development is a key focus of the Trump administration.
Devon's prized acreage position in the Delaware Basin gives it some of the lowest break-even costs among U.S. shale operators. Devon's strong cash flow production, in turn, funds its bountiful dividends and share repurchases.
Occidental's stock is a favorite of Warren Buffett. Buffett's investment conglomerate, Berkshire Hathaway, first invested in the oil and gas producer in 2019. Occidental's valuable assets in the Permian Basin and robust free cash flow are major reasons why Berkshire still holds roughly $16 billion of its shares.
Should you buy stock in Occidental Petroleum right now?
Before you buy stock in Occidental Petroleum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Occidental Petroleum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 31, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

Why ExxonMobil, Chevron, SLB, and Other Energy Stocks Climbed Today

The S&P 500 Index ($SPX) (SPY) closed down by -0.33% on Monday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.70%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +0.08%. E-mini S&P futures (ESU26) fell -0.28%, and September E-mini Nasdaq futures (NQU26) rose +0.07%.
Stock indices settled mostly lower on Monday, with the Dow Jones Industrial Average falling to a 1-week low on a flare-up in geopolitical risks. The broader market was under pressure on Monday as renewed Middle East tensions boosted crude oil prices, raised inflation expectations, pushed bond yields higher, and complicated the US inflation outlook. WTI crude oil rose more than +2% on Monday after the US and Iran exchanged strikes for the first time in about a month. The 10-year T-note yield jumped to a 19-month high of 4.77% on Monday.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also had some negative carryover from last Friday when Fed Chair Warsh vowed to bring inflation back to target and said financial conditions aren’t restrictive, bolstering the chance of a Fed rate hike next month. The chance of a Fed interest rate hike at next month’s FOMC meeting rose to 65% on Monday, up from 36% before he spoke last Friday.
On the positive side, energy producers rose on Monday after crude oil prices rallied and cryptocurrency stocks rose after Bitcoin climbed more than 2%. Cybersecurity stocks also rose on Monday, supporting gains in the Nasdaq 100.
Chinese economic news was mixed after China's Aug manufacturing PMI rose +0.6 to 49.8, stronger than expectations of 49.5. However, the Aug non-manufacturing PMI was unchanged at 49.0, weaker than expectations of an increase to 49.4.
Oct WTI crude oil prices (CLV26) jumped more than +2% on Monday to a 1-week high as Middle East tensions flared. The US Central Command said it targeted Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Crude prices added to their gains on Monday when Axios reported that President Trump is weighing limited strikes against Iran to prevent it from reconstituting its radar and missile capabilities to attack ships in the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Monday. The Euro Stoxx 50 closed down -1.01%. China's Shanghai Composite rose to a 1.5-week high and closed up +0.85%. Japan's Nikkei-225 Stock Average closed down -0.14%.
Interest Rates
September 10-year T-notes (ZNU6) closed down -6.5 ticks on Monday. The 10-year T-note yield rose +3.6 bp to 4.754%. T-notes tumbled to a 19-month nearest-futures low on Monday, and the 10-year T-note yield rose to a 19-month high of 4.766%. T-notes retreated on Monday after the +2% surge in WTI crude oil prices to a 1-week high boosted inflation expectations. T-notes are also being pressured by negative carryover from last Friday when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% on Monday from 36% before he spoke.
European government bond yields moved higher on Monday. The 10-year German bund yield jumped to a 15-year high of 3.327% and finished up +4.5 bp to 3.324%. The 10-year UK gilt did not trade on Monday, with markets in the UK closed for a holiday.
German Aug CPI (EU harmonized) rose +0.2% m/m and +2.9% y/y, weaker than expectations of +0.3% m/m and +3.1% y/y.
Markets are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Airlines and cruise line operators fell on Monday after WTI crude oil rose more than +2% to a 1-week high, boosting fuel costs and curbing the companies’ profitability. Carnival (CCL) and Royal Caribbean Cruises (RCL) closed down more than -3%, and United Airlines Holdings (UAL), Delta Air Lines (DAL), Alaska Air Group (ALK), Southwest Airlines (LUV), and Norwegian Cruise Line Holdings (NCLH) closed down more than -2%. Also, American Airlines Group (AAL) closed down more than -1%.
Housing stocks and building suppliers moved lower on Monday after the 10-year T-note yield rose to a 19-month high, boosting mortgage rates and undercutting housing demand. DR Horton (DHI), Lennar (LEN), and KB Home (KBH) closed down more than -2%, and Pulte Group (PHM), Toll Brothers (TOL), and Builders Firstsource (BLDR) closed down more than -1%.
Energy producers and service providers moved higher on Monday after WTI crude oil rose more than +2% to a 1-week high. SLB Ltd (SLB) closed up more than +4%, and ExxonMobil Holdings (XOM), and Devon Energy (DVN) closed up more than +2%. Also, Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones Industrials, and Apa Corp (APA), Diamondback Energy (FANG), Baker Hughes (BKR), ConocoPhillips (COP), Occidental Petroleum (OXY), Halliburton (HAL), Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO) closed up more than +1%.
Cryptocurrency stocks rose on Monday after Bitcoin (^BTCUSD) jumped more than +2%. Circle Internet Group (CRCL) closed up more than +9%, and Coinbase Global (COIN) and Galaxy Digital Holdings (GLXY) closed up more than +5%. Also, Strategy (MSTR) and Iren Ltd (IREN) closed up more than +4%, and MARA Holdings (MARA) closed up +0.66%.
CrowdStrike Holdings (CRWD) closed up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 and lead cybersecurity stocks higher after announcing a strategic partnership with Clear Secure that integrates the CLEAR1 identity platform with the CrowdStrike Falcon platform. Also, Okta (OKTA) closed up more than +4%, and Palo Alto Networks (PANW), Zscaler (ZS), Fortinet (FTNT), and SentinelOne (S) closed up more than +2%. In addition, Cloudflare (NET) closed up more than +1%.
Edison International (EIX) closed down more than -23% to lead losers in the S&P 500, and PG&E Corp (PCG) closed down more than -19% after California lawmakers introduced a bill that would update the state’s wildfire response without shifting liability away from publicly traded utilities.
Aon Plc (AON) closed down more than -9% on reports that it will acquire KKR & Co’s USI Insurance Services for $17 billion.
Howmet Aerospace (HWM) closed down more than -7%, and GE Vernova (GEV) closed down more than -1% after Elon Musk said SpaceX and Tesla are each building 100 GW/year of solar production capacity, which will reduce the companies’ reliance on natural-gas-powered turbines.
Pinterest (PINS) closed down more than -6% after announcing CFO Donnelly will step down effective October 30 after three years with the company.
CNH Industrial (CNH) closed up more than +1% after Baird upgraded the stock to outperform from neutral with a price target of $15.
Science Applications International (SAIC) closed up more than +1% after reporting Q2 revenue of $1.88 billion, better than the consensus of $1.76 billion, and raising its 2027 revenue forecast to $7.2 billion to $7.3 billion from a previous forecast of $7.0 billion to $7.2 billion, stronger than the consensus of $7.19 billion.
Kaiser Aluminum (KALU) closed up more than +1% after UBS upgraded the stock to buy from neutral with a price target of $184.
Earnings Reports (9/1/2026)
Credo Technology Group Holding (CRDO), Dell Technologies Inc (DELL), Gitlab Inc (GTLB), Medtronic PLC (MDT), MongoDB Inc (MDB), Palo Alto Networks Inc (PANW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.