Energy Companies Experience Decline in Pre-Market Trading
Shares of energy companies in the stock market faced a significant downturn during pre-market trading on Monday. This drop can be attributed to Chevron Corp.'s $53 billion agreement to acquire Hess Corp., which seemed to have a negative impact on the sector as a whole.
Energy Select Sector ETF and Equity Components' Performance
The Energy Select Sector SPDR ETF (XLE) decreased by 0.9% in pre-market trading. Out of the 22 equity components that traded before the market opened, 20 experienced a decline in their stock prices. In comparison, futures for the S&P 500 (SPX) dropped by 0.5% and crude oil futures fell by 0.7%.
Chevron Corp.'s Deal and Its Effect on Hess Corp.'s Stock
Despite the stock acquisition announcement, Hess Corp.'s stock only rose by 0.6%. The choice to conduct a stock deal caused Chevron Corp.'s stock to fall by 2.7%, becoming the leading decliner among energy ETFs. However, Williams Companies Inc.'s stock experienced a slight gain of 0.9%, although trading volume remained low.
Performance of Other Active ETF Components
Occidental Petroleum Corp. saw a decrease in its stock price by 1.1%, while Exxon Mobil Corp. experienced a decline of 0.7%. Additionally, shares of Marathon Oil Corp. slid by 1.5%. Furthermore, Pioneer Natural Resources Co., which is set to be acquired by Exxon Mobil in a $59.5 billion stock deal, witnessed a minor drop of 0.3% during pre-market trading.
In summary, the energy sector faced a downturn in pre-market trading due to Chevron Corp.'s $53 billion stock deal with Hess Corp. as well as other contributing factors.
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