Why ExxonMobil Stock Jumped 5% This Morning
Shares of integrated energy giant ExxonMobil (NYSE: XOM) rose 5% out of the gate on June 16. That's the exact opposite of how the day started out on June 15, when the stock dropped sharply at the open. In both cases, however, the moves didn't hold up. By 10 a.m. EDT on June 16, the stock was up just 3% or so.
The big news, again, was the whipsawing price of oil. There's no question that oil prices have a material impact on the top and bottom lines at Exxon, so it makes sense that investors would use that as a trading cue for the company's stock. However, the fact remains that oil faces a material supply/demand imbalance that isn't close to over yet. Still, when retail sales came in higher than expected, investors got excited that the economic impact of COVID-19 might not be as bad as previously feared.
Image source: Getty Images.
Source Fool.com