Why Centennial Resource Development Shot Higher Early on June 16
Shares of onshore U.S. exploration and production company Centennial Resource Development (NASDAQ: CDEV) shot higher at the open Tuesday, gaining nearly 20% in the first few minutes of the trading day. What's interesting is that the story was almost exactly the opposite just one day earlier, when the oil and gas driller's stock fell nearly 15% within 15 minutes of the open.
The headwind at the start of trading Monday was the falling price of oil. Tuesday morning, the tailwind was the rising price of oil, and if you feel a bit whipsawed by the shifts here, you aren't alone. Trading in the energy space has been highly volatile lately. The list of positives factors driving it higher Tuesday included strong retail sales reports (suggesting a solid economic recovery from the impacts of COVID-19), hints that the U.S. government might announce a large infrastructure spending plan, and upbeat news about a coronavirus treatment.
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Source Fool.com
