S&P 500 Drops to Lowest Level Since June 1

On Friday, the S&P 500 closed at 4,224.16 which was its lowest level since June 1. The index also closed below its 200-day moving average for the first time since March.

I notice that 3M (MMM) is at a 10-year low. The dividend currently yields almost 7%.

I’ve written about Mueller Industries (MLI) before. The stock just announced a 2-for-1 stock split. The stock is down more than 20% since its high this summer.

Chevron (CVX) said it’s buying Hess (HES) for $53 billion. This is the second big oil deal in recent weeks. Exxon Mobil (XOM) said it’s looking to buy Pioneer Natural Resources (PXD).

The proposed deal raises the competition between Chevron, the No. 2 U.S. oil and gas producer behind Exxon, putting it in direct competition with its bigger rival to develop drilling in nascent producer Guyana.

The deal also signals Chevron’s plans to continue boosting investments in fossil fuels as oil demand remains strong and big producers use acquisitions to replenish their inventory after years of under-investment.

Chevron has offered 1.025 of its shares for each Hess share held, or $171 per share, implying a premium of about 4.9% to the stock’s last close. The total deal value is $60 billion, including debt.

The U.S. government recently wrapped up its fiscal year. Some people thought the deficit would exceed $2 trillion. The good news is that we were only $1.7 trillion in the red. That’s up about $320 billion over the year before.

For the year, revenues fell by $457 billion, and expenses fell by $137 billion. Outlays for the year were $6.1 trillion. The total debt now stands at $33.6 trillion. That’s up $10 trillion since Covid struck.

On Thursday, the government will release its first look at Q3 GDP growth. The consensus on Wall Street is for growth of 4.5%. If that’s correct, then it would be one of our best quarters in years.

Posted by on October 23rd, 2023 at 11:07 am


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