Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending and Conventional Blendstock for Oxygenate Blending gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company owns and operates renewable diesel and ethanol plants, as well as produces renewable diesel and naphtha under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distiller grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.

Valero Energy’s strong profitability is combined with a noticeably more expensive valuation on book and cash flow multiples, which limits the potential for re-rating. A P/E of 17.74 is above the industry median, while a P/B of 4.34 looks especially high and indicates a premium to the sector that the market has already partially priced in. At the same time, the P/S is below the industry median, supporting the view that revenue is valued relatively moderately, but this does not offset the expensiveness in terms of equity and free cash flow. The P/FCF is also above the median, so even with strong cash flow the stock does not look cheap. The company’s strength lies in its high profitability: ROE of 26.55%, ROA of 11.84%, and ROI of 19.37% are significantly above industry levels, indicating efficient use of capital. The trend in these metrics has generally improved compared with earlier periods, which is a positive for the valuation. Liquidity looks comfortable: a current ratio of 1.64 and a quick ratio of 1.23 are above the median, and cash on hand has increased significantly, reducing short-term risk. Leverage is moderate, with debt/equity of 0.37 below the industry median, although absolute debt remains meaningful and requires attention. Margins, by contrast, are weaker than the sector’s: gross margin, operating margin, and net profit margin are all well below the median, indicating the business’s sensitivity to the cycle and refining spreads. Despite growth in profit and operating income year over year, low margins limit earnings resilience in less favorable conditions. Revenue, EBITDA, and net income have increased, while capital and assets remain large and stable, supporting the fundamental base. Dividend yield has declined compared with previous periods, so the dividend case is currently weaker than before. Overall, the picture for investors is mixed but positive: the business is high-quality and profitable, but the current market valuation already reflects a significant portion of these strengths, so only a moderate conservative downward adjustment is warranted.

Valero Energy Corporation

Средний индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Medium index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов снизился, но остается значительным.

Medium index, slightly up. The outflow of funds from longs has decreased, but remains significant.

Valero appears profitable and financially stable, but its high P/B and P/FCF valuation, combined with weak margins, limits the potential for price appreciation.

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Valero (VLO) Q3 2026 Earnings Call Transcript

Valero Energy Corporation reported net income attributable to Valero stockholders of $6.8 billion, or $23.89 per share, for the third quarter of 2026, compared to $1.1 billion, or $3.53 per share, for the third quarter of 2025. Adjusted net income attributable to Valero stockholders for the third quarter of 2026 was $6.8 billion, or $23.90 per share, compared to $1.1 billion, or $3.66 per share, for the third quarter of 2025.
In segment operations, the Refining segment reported operating income of $8.8 billion for the third quarter of 2026, compared to $1.6 billion for the third quarter of 2025, with throughput volumes averaging 3.0 million barrels per day. The Renewable Diesel segment reported operating income of $353 million for the third quarter of 2026, compared to an operating loss of $28 million for the third quarter of 2025. The Ethanol segment reported operating income of $272 million for the third quarter of 2026, compared to $183 million for the third quarter of 2025, with production volumes averaging 4.8 million gallons per day.
Net cash provided by operating activities was $6.9 billion in the third quarter of 2026, and adjusted net cash provided by operating activities was $7.3 billion. Capital investments totaled $432 million in the third quarter of 2026, and capital investments attributable to Valero were $429 million.
Valero repaid the outstanding principal balances of $100 million of its 7.65% Debentures that matured in July and $426 million of its 3.400% Senior Notes that matured in September. Additionally, Valero completed the FCC Unit optimization project at the St. Charles Refinery on schedule and within budget during the third quarter.
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Valero Energy Corporation Reports Third Quarter 2026 Results

(RTTNews) - Valero Energy Corp. (VLO) will host a conference call at 10:00 AM ET on October 22, 2026, to discuss Q3 26 earnings results.
To access the live webcast, log on to https://investorvalero.com/events-and-presentations/default.aspx

Valero Energy Q3 26 Earnings Conference Call At 10:00 AM ET

Key Points
This was a substantial hike, with the pundit cranking his price target almost 61% higher.
This doesn't necessarily make him bullish on Valero's future, though.
Market players energetically bought into Valero Energy (NYSE:VLO) on the second trading day of the week. A key reason for this was a very substantial price target raise on the stock by an analyst at a high-profile American bank. Buoyed by that positive development, Valero's stock closed the day nearly 5% higher.
Fueling a rally
The prognosticator in question was Citigroup's (NYSE:C)Vikram Bagri, who upped his fair value assessment on Valero to $485 per share -- quite some distance above his previous level of $302. Perhaps somewhat surprisingly, despite the heavy lift, he maintained his neutral recommendation on the mid- and downstream energy stock.
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It wasn't immediately clear why Bagri decided to make the change, but Valero has seen numerous price target increases in recent days and weeks.
Several peers at large U.S. banks enacted hikes, including Bank of America's (NYSE:BAC) Jean Ann Salisbury. Early in October, she adjusted her Valero price target to $414 per share from $395. According to reports, she waxed bullish about positive developments in the company's long-term refinery capture and widening discounts in heavy crude oil.
What goes up must...
The recent price target changes were largely due to a surge in Valero's stock price to an all-time high. This alone would make me wary of the stock, despite Valero's impressive recent increases in "crack spreads" (i.e., refining profit margins) and its numerous competitive advantages, such as relatively low costs. This is a cyclical industry, and it feels we're very much at the top of a cycle. I believe there's more downside potential than upside with this stock.
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Why Valero Energy Stock Triumphed Today

The S&P 500 Index ($SPX) (SPY) closed down by -0.02% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.31%. December E-mini S&P futures (ESZ26) fell -0.02%, and December E-mini Nasdaq futures (NQZ26) fell -0.32%.
Stock indexes settled lower on Tuesday, with the Nasdaq 100 falling to a 1.5-week low. Weakness in chipmakers weighed on the broader market Tuesday amid concerns that investment in artificial intelligence may be unsustainable due to safety concerns and signs of funding strain. Also, a selloff in South Korea’s Samsung Electronics and SK Hynix knocked South Korea’s Kospi Index down more than -5% on Tuesday to a 2.5-month low amid concerns over intensifying competition from China, adding additional pressure to chip stocks.
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However, stocks recovered from their worst levels on Tuesday as bond yields fell on dovish Fed comments that bolstered speculation the Fed won’t be forced to raise interest rates aggressively. Fed Governor Christopher Waller said the recent surge in long-term bond yields is helping to curb demand in interest-rate-sensitive sectors, such as housing and automobiles, doing some of the Fed's work to tighten monetary policy. Waller’s comments suggest he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said, "It may be appropriate for one more 25 bp Fed rate hike this year, but I don't think at this time I have any reason to believe that we would need to do more."
Hawkish comments on Tuesday from Chicago Fed President Austan Goolsbee limited the decline in T-note yields when he said inflation tied to the AI boom is "jumping out of its lane" and starting to push up prices in unrelated corners of the economy. The 10-year T-note yield fell -3 bp to 5.21%.
Tuesday’s US economic news was supportive for stocks after Sep existing home sales unexpectedly rose +1.5% m/m to 3.99 million, stronger than expectations of a decline to 3.95 million.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.”
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
The International Monetary Fund (IMF) raised its 2026 global GDP forecast to 3.1% from 3.0% in July and kept its 2026 global consumer price forecast unchanged from July at 4.7%.
Nov WTI crude oil prices (CLX26) rose slightly on Tuesday amid concerns about Middle East energy-supply disruptions. Saudi Arabia has seen an increase in attacks from Houthi rebels in Yemen in recent days, while Iran has ramped up attacks on shipping in the Strait of Hormuz.
Gains in crude were limited on Tuesday after Saudi Arabia said its Sep crude production rose by +2 million bpd (+40% m/m) to 8.732 million bpd, recovering from a 36-year low in August. Goldman Sachs estimates a $24-a-barrel risk premium in crude oil prices due to the Middle East conflict. However, if Europe releases half the diesel it has announced from reserves, fair value prices could fall by about $11 a barrel.
Markets are discounting a 22% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -0.55%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.10%. Japan's Nikkei-225 Stock Average fell to a 1.5-week low and closed down -1.82%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +5.5 ticks on Tuesday. The 10-year T-note yield fell -2.5 bp to 5.213%. Dec T-notes rose to a 1-week high on Tuesday, and the 10-year T-note yield fell to a 1-week low of 5.171%. Lower inflation expectations supported gains in T-notes on Tuesday after the 10-year breakeven inflation rate fell to a 1-week low of 2.336%. Dovish Fed comments also supported T-note prices on Tuesday when Fed Governor Christopher Waller said the recent surge in long-term bond yields is doing some of the Fed’s work to tighten monetary policy, suggesting he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said that after the Fed hikes rates one more time this year, he believes the Fed’s rate-hike cycle is done.
T-note gains were limited Tuesday after Chicago Fed President Austan Goolsbee said inflation remains too high. Also, Tuesday’s report showing Sep existing home sales unexpectedly increased weighed on T-notes.
European government bond yields were mixed on Tuesday. The 10-year German bund yield fell to a 1-week low of 3.426% and finished down -0.8 bp to 3.469%. The 10-year UK gilt yield rose +0.7 bp to 5.447%.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated for a second session on Tuesday, weighing on the overall market. Applied Materials (AMAT) closed down more than -6% to lead losers in the S&P 500 and Nasdaq 100 after failing to give a detailed outlook at an investor day conference. Also, Micron Technology (MU) and KLA Corp (KLAC) closed down more than -3%, and Lam Research (LRCX) closed down more than -2%. In addition, ASML Holding NV (ASML) and Western Digital (WDC) closed down more than -1%.
Pharmaceutical stocks sold off on Tuesday. Vertex Pharmaceuticals (VRTX) closed down more than -4%, and Merck & Co (MRK), Ionis Pharmaceuticals (IONS), Jazz Pharmaceuticals Plc (JAZZ), and Untragenyx Pharmaceutical (RARE) closed down more than -2%. Also, Gilead Sciences (GILD), Amgen (AMGN), Eli Lilly (LLY), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) closed down more than -1%.
Energy producers and service providers rallied on Tuesday as WTI crude prices rose. Valero Energy (VLO) closed up more than +4%, and Marathon Petroleum (MPC) and Phillips 66 (PSX) closed up more than +3%. Also, APA Corp (APA), ConocoPhillips (COP), and Devon Energy (DVN) closed up more than +2%, and Chevron (CVX), Diamondback Energy (FANG), and ExxonMobil Holdings (XOM) closed up more than +1%.
Telecom operators moved higher on Tuesday. Charter Communications (CHTR) closed up more than +4%, and T-Mobile US (TMUS), Comcast (CMCSA), Verizon Communications (VZ), and AT&T (T) closed up more than +1%.
Syndax Pharmaceuticals (SNDX) closed down more than -16% after saying its MAXPIRe Phase 2 trial of its axatilimab to treat idiopathic pulmonary fibrosis failed to meet its primary endpoint.
AST SpaceMobile (ASTS) closed down more than -8% after Piper Sandler downgraded the stock to neutral from overweight.
SentinelOne (S) closed down more than -6% after announcing that it intends to offer $1.25 billion in convertible senior notes due in 2031 via private placement.
Johnson & Johnson (JNJ) closed down more than -5% to lead losers in the Dow Jones Industrials after forecasting full-year sales of $101.00 billion to $101.40 billion, the midpoint below the consensus of $101.24 billion.
Domino’s Pizza (DPZ) closed down more than -5% after reporting Q3 total domestic store comparable sales growth of +0.30%, below the consensus of +0.72%.
Meta Platforms (META) closed up more than +2% to lead gainers in the Nasdaq 100, adding to Monday’s +3% gain, after releasing a new artificial intelligence model called Muse Wonder, which the company claims has “frontier capabilities.”
Ollie’s Bargain Outlet Holdings (OLLI) closed up more than +2% after its Board of Directors approved a $500 million stock buyback plan.
Amer Sports (AS) closed up more than +2% after Jefferies initiated coverage on the stock with a buy recommendation and a price target of $42.
Earnings Reports (10/14/2026)
Bank of America Corp (BAC), Blackrock Inc (BLK), Fastenal Co (FAST), Morgan Stanley (MS), Progressive Corp/The (PGR), State Street Corp (STT).
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 Finish Lower Ahead of Wednesday’s CPI Report

Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Pacer US Cash Cows 100 ETF, where 51,600,000 units were destroyed, or a 15.6% decrease week over week. Among the largest underlying components of COWZ, in morning trading today Qualcomm is up about 0.6%, and Valero Energy is higher by about 1.4%.
And on a percentage change basis, the ETF with the biggest outflow was the FT Vest U.S. Equity Moderate Buffer ETF - September, which lost 5,500,000 of its units, representing a 39.4% decline in outstanding units compared to the week prior.

COWZ, GSEP: Big ETF Outflows

In trading on Tuesday, the WisdomTree Artificial Intelligence and Innovation Fund ETF is outperforming other ETFs, up about 1.9% on the day. Components of that ETF showing particular strength include shares of Bloom Energy, up about 12.3% and shares of Cerebras Systems, up about 6.9% on the day.
And underperforming other ETFs today is the VanEck Oil Refiners ETF, down about 2.4% in Tuesday afternoon trading. Among components of that ETF with the weakest showing on Tuesday were shares of Valero Energy, lower by about 1.2%, and shares of Phillips 66, lower by about 1% on the day.

Tuesday's ETF Movers: WTAI, CRAK

Subsea7 S.A. SUBCY, an engineering, construction and services contractor to the offshore energy industry, announced a contract extension with Turkish Petroleum Offshore Technology Center (TP-OTC) for work on the Sakarya field, one of Turkey’s major energy projects. The new contract is associated with the third phase of development of the gas field in the Black Sea.
In May 2023, Turkish Petroleum offered an engineering, procurement, construction and installation (EPCI) contract to a consortium of three firms: SLB, Saipem and Subsea7. This contract was associated with the second development phase of the Sakarya gas field. Subsea7 later secured another contract in May 2024 for the installation of a floating production unit (FPU) for the second phase of the energy project.
The company received a contract for subsea umbilicals, risers and flowlines (SURF) systems for Phase 3 of the Sakarya field development in August 2025, and its association with the third phase of development was extended in March this year. The newest contract, announced in September, involves towing and mooring line installation associated with the FPU. SUBCY is also expected to handle connection activities related to the FPU, which is scheduled for commissioning in 2028. The project management and engineering tasks associated with the latest contract are expected to begin immediately from Subsea7’s Istanbul office.
The third phase of the giant Sakarya gas development reportedly involves connecting the Goktepe field to the Phase 3 FPU. The Sakarya gas field is one of the most important natural gas discoveries in Turkey. The new contract award strengthens SUBCY’s relationship with Turkish Petroleum and reinforces its presence in the region.
SUBCY’s Zacks Rank & Other Key Picks
SUBCY currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the energy sector are PBF Energy PBF, Valero Energy VLO and Galp Energia SGPS SA GLPEY. While PBF Energy and Valero sport a Zacks Rank #1 (Strong Buy) each, Galp Energia carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
PBF Energy has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries, including Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. The diversified refining footprint provides the company exposure to several regional refining markets, supporting higher margins.
Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. VLO’s refineries have a combined Nelson Complexity Index of 11.5, which implies that the refineries can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It refines and markets oil products and gas, as well as engages in marketing and sales activities.
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Subsea7 Expands Sakarya Phase 3 Scope With Latest TP-OTC Contract

The S&P 500 Index ($SPX) (SPY) is up by +0.25% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.36%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.30%. December E-mini S&P futures (ESZ26) are up +0.25%, and December E-mini Nasdaq futures (NQZ26) are up +0.31%.
Stock indexes are moving higher today amid weakness in crude oil prices. WTI crude oil is down more than -1% on a report that US and Iranian negotiators are exploring a phased deal to reopen the Strait of Hormuz. Also, strength in chipmakers and AI stocks today is also a supportive factor for stocks amid optimism over AI and demand for AI infrastructure.
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Today’s US economic news was better than expected and supportive for stocks after Aug nondefense ex-aircraft capital goods new orders, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m. July was also revised upward to +0.6% m/m from the previously reported unchanged m/m. Also, the University of Michigan US Sep consumer sentiment index was unexpectedly revised upward by +0.3 to 48.1, stronger than expectations of a downward revision to 47.5.
Stock indexes fell from their highs today as bond yields rose. The 10-year T-note yield climbed to a new 19-year high of 5.23% today on concerns the Fed will continue to raise interest rates after New York Fed President John Williams said the Fed can't ignore supply shocks if they have a persistent effect on prices and it needs to return inflation to target.
Nov WTI crude oil prices (CLX26) are down more than -1% today as US and Iranian negotiators explored a phased deal that would see Iran reopen the Strait of Hormuz. The Financial Times reported that Iranian Foreign Minister Abbas Araghchi had submitted a new seven-day proposal to the US to reopen Hormuz if certain conditions were met.
Markets are discounting a 66% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +0.37%. China's Shanghai Composite did not trade today, with markets in China closed for the Mid-Autumn Festival holiday. Japan's Nikkei-225 Stock Average rose to a 2.5-week high and closed up +1.30%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -9 ticks today. The 10-year T-note yield is up +2.3 bp to 5.225%. Dec T-notes are under pressure today and are just above Thursday’s 19-year nearest-futures low, and the 10-year T-note yield rose to a new 19-year high of 5.223%. T-notes gave up an overnight advance and turned lower on hawkish comments from New York Fed President John Williams, who stressed that the Fed needs to return inflation to target. T-notes also fell today on better-than-expected US economic news, including Aug nondefense ex-aircraft capital goods new orders and the University of Michigan Sep US consumer sentiment index. T-notes initially moved higher today as WTI crude oil prices fell more than -1%, easing inflation expectations and sparking some mid short covering.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 17-year high of 3.632% and is up +2.8 bp to 3.628%. The 10-year UK gilt yield climbed to a 1.5-week high of 5.408% and is up +1.6 bp to 5.397%.
The German Oct GfK consumer confidence index fell -3.8 to a 5-month low of -30.6, weaker than expectations of -27.2.
Markets are discounting a 47% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are moving higher today, supporting the overall market. The iShares Semiconductor ETF (SOXX) is up more than +1%. ARM Holdings Plc (ARM), NXP Semiconductors NV (NXPI), and Qualcomm (QCOM) are up more than +3%, and Microchip Technology (MCHP), Analog Devices (ADI), and Texas Instruments (TXN) are up more than +2%. Also, SanDisk (SNDK), ASML Holding NV (ASML), Applied Materials (AMAT), and Lam Researach (LRCX) are up, more than +1%.
Cybersecurity stocks are under pressure today, led by an -8% decline in Zscaler (ZS) after announcing Ross Tackett as the new chief revenue officer, effective October 1. Also, Okta (OKTA) and SentinelOne (S) are down more than -3%, and Palo Alto Networks (PANW), Fortinet (FTNT) and Gen Digital (GEN) are down more than -2%. In addition, CrowdStrike Holdings (CRWD) is down more than -1%.
Energy stocks and service providers are weaker today, with WTI crude oil down more than -1%. Valero Energy (VLO) and Devon Energy (DVN) are down more than -2%, and Phillips 66 (PSX), Marathon Petroleum (MPC), APA Corp (APA), ConocoPhillips (COP), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -1%.
Atlas Energy Solutions (AESI) is up more than +19% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project.
People Inc. (PPLI) is up more than +9% after the Wall Street Journal reported that MGM Resorts International is discussing making a bid for the company.
Humana (HUM) is up more than +8% to lead gainers in the S&P 500 after Barclays upgraded the stock to overweight from equal weight with a price target of $515.
Akamai Technologies (AKAM) is up more than +7% after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic.
Twilio (TWLO) is down more than -6% after HSBC downgraded the stock to reduce from hold with a price target of $211.
Lionsgate Studios (LION) is down more than -4% after JPMorgan Chase initiated coverage on the stock with a recommendation of underweight and a price target of $9.
Comcast Corp (CMCSA) is down more than -2% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $18.
Earnings Reports (9/25/2026)
None.
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 Supported by Lower Crude Prices and Strength in Chipmakers

The S&P 500 Index ($SPX) (SPY) is up by +0.26% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.45%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.34%. December E-mini S&P futures (ESZ26) are up +0.24%, and December E-mini Nasdaq futures (NQZ26) are up +0.35%.
Stock indexes are moving higher today amid weakness in crude oil prices and stable bond yields. WTI crude oil is down more than -1% on a report that US and Iranian negotiators are exploring a phased deal to reopen the Strait of Hormuz. The lower crude prices are easing inflation risks and stabilizing bond yields, after the 10-year T-note soared to a 19-year high of 5.22% on Thursday. The 10-year T-note yield is little changed at 5.18% today.
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Strength in chipmakers and AI stocks today is also a supportive factor for stocks amid optimism over AI and demand for AI infrastructure. Also, today’s US economic news was better than expected after Aug nondefense ex-aircraft capital goods new orders, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m. July was also revised upward to +0.6% m/m from the previously reported unchanged m/m.
New York Fed President John Williams said the Fed can't ignore supply shocks if they have a persistent effect on prices and it needs to return inflation to target.
Nov WTI crude oil prices (CLX26) are down more than -1% today as US and Iranian negotiators explored a phased deal that would see Iran reopen the Strait of Hormuz. The Financial Times reported that Iranian Foreign Minister Abbas Araghchi had submitted a new seven-day proposal to the US to reopen Hormuz if certain conditions were met.
Markets are discounting a 64% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +0.71%. China's Shanghai Composite did not trade today, with markets in China closed for the Mid-Autumn Festival holiday. Japan's Nikkei-225 Stock Average rose to a 2.5-week high and closed up +1.30%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -2 ticks today. The 10-year T-note yield is up +0.4 bp to 5.181%. Dec T-notes gave up an overnight advance and turned slightly lower on hawkish comments from New York Fed President John Williams, who stressed that the Fed needs to return inflation to target. T-notes also fell on signs of strength in the US economy after Aug nondefense ex-aircraft capital goods new orders rose more than expected, a hawkish factor for Fed policy. T-notes initially moved higher today as WTI crude oil prices fell more than -1%, easing inflation expectations and sparking some mid short covering.
European government bond yields are mixed today. The 10-year German bund yield is up +0.7 bp to 3.606%. The 10-year UK gilt yield is down -1.8 bp to 5.363%.
The German Oct GfK consumer confidence index fell -3.8 to a 5-month low of -30.6, weaker than expectations of -27.2.
Markets are discounting a 47% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are moving higher today, supporting the overall market. The iShares Semiconductor ETF (SOXX) is up more than +1%. ARM Holdings Plc (ARM) is up more than +4%, and SanDisk (SNDK) is up more than +3%. Also, Micron Technology (MU) and Analog Devices (ADI) are up more than +2%. In addition, Marvell Technology (MRVL), ASML Holding NV (ASML), Applied Materials (AMAT), Western Digital (WDC), Broadcom (AVGO), Qualcomm (QCOM), Microchip Technology (MCHP), Seagate Technology Holdings Plc (STX) and Texas Instruments (TXN) are up more than +1%.
Cybersecurity stocks are under pressure today, led by a -4% decline in Zscaler (ZS) after announcing Ross Tackett as the new chief revenue officer, effective October 1. Also, Palo Alto Networks (PANW) is down more than -3% to lead losers in the S&P 500 and Nasdaq 100, and Okta (OKTA), and SentinelOne (S) are down more than -2%. In addition, Fortinet (FTNT) and Gen Digital (GEN) are down more than -1%.
Energy stocks and service providers are weaker today, with WTI crude oil down more than -1%. Valero Energy (VLO) is down more than -3%, and Devon Energy (DVN), Phillips 66 (PSX), and Marathon Petroleum (MPC) are down more than -2%. Also, APA Corp (APA), ConocoPhillips (COP), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -1%,
Atlas Energy Solutions (AESI) is up more than +15% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project.
People Inc. (PPLI) is up more than +9% after the Wall Street Journal reported that MGM Resorts International is discussing making a bid for the company.
Akamai Technologies (AKAM) is up more than +8% to lead gainers in the S&P 500 after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic.
Synopsys (SNPS) is up more than +3% after HSBC upgraded the stock to buy from hold with a price target of $700.
Twilio (TWLO) is down more than -3% after HSBC downgraded the stock to reduce from hold with a price target of $211.
Lionsgate Studios (LION) is down more than -2% after JPMorgan Chase initiated coverage on the stock with a recommendation of underweight and a price target of $9.
Comcast Corp (CMCSA) is down more than -2% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $18.
Nike (NKE) is down more than -1% to lead losers in the Dow Jones Industrials after Bank of America Global Research downgraded the stock to underperform from neutral with a price target of $30.
Earnings Reports (9/25/2026)
None.
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.

Indicator	Mar 26	Jun 26	Jul 26	Aug 26	Oct 26	TTM	Median
P/E	17.89	10.80	—	—	17.74	17.74	13.92
Price/Sales	0.60	0.56	0.68	—	0.92	0.92	1.48
P/B	2.70	2.64	—	—	4.34	4.34	1.56
P/FCF	16.03	8.26	—	11.43	13.58	13.58	9.81

Indicator	Mar 26	Jun 26	Jul 26	Aug 26	Oct 26	TTM	Median
Net Profit Margin	3.36	5.17	—	—	—	5.17	14.03
Operating Margin	4.66	7.18	—	—	—	7.18	19.06
Gross Margin	5.59	8.03	—	—	—	8.03	49.51
Return on tangible equity	15.66	26.55	—	—	—	26.55	17.57

Indicator	Mar 26	Jun 26	Jul 26	Aug 26	Oct 26	TTM	Median
EPS	—	12.54	12.54	—	23.90	23.90	0.58
EPS Forecast	—	9.87	9.87	—	21.28	21.28	0.43
Revenue	32.38B	44.48B	—	—	—	44.48B	223.00M
Gross Profit	2.05B	5.47B	—	—	—	5.47B	—
EBITDA	2.57B	—	—	—	—	2.57B	—

Valero Energy Corporation

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