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Stocks - Exxon Soars in Premarket on Capex Cut

·2 mins read

By Geoffrey Smith

Investing.com -- Stocks in focus in premarket trading on Tuesday. The market is expected to open higher across the board again, after a broad rally on Monday that lifted major indices by more than 7%. Please refresh for updates.

Exxon Mobil (NYSE:XOM) stock was up 5.2% after the company said it has slashed this year’s capital spending budget by $10 billion to $23 billion. Exxon said ‘the largest share’ of the cut will hit its fields in the Permian Basin. It’s also targeting a 15% cut in cash operating expenses to conserve money in the current exceptional low price environment. Exxon also said it expects a delay of up to 12 months in commissioning the Payara development in offshore Guyana, and has also deferred a final investment decision for its Rovuma LNG project in Mozambique. Keurig Dr Pepper (NYSE:KDP) stock was in focus after it announced it has begun work on refinancing and enlarging its revolving credit facility. It is also marketing long-term notes to refinance existing commercial paper with an eye to lengthening its overall maturity profile. Slack Technologies (NYSE:WORK) was up 0.5% after it said it will increase the size of the convertible bond offering it announced on Monday by $150 million to $750 million. The notes, due in 2025, were sold with a coupon of 0.5%, at a conversion price of $31 a share, some 23% above the current value.

3M (NYSE:MMM) stock was up 5.6% after President Donald Trump said the administration had reached an “amicable” agreement to manufacture an extra 55.5 million face masks each month for the next three months, mostly earmarked for U.S. health care workers.

The agreement ends an ugly public argument between the two sides over emergency measures to raise mask production.

Carnival (NYSE:CCL) stock rose another 20.8% in the wake of its successful sale of new equity and bonds last week that raised some $6 billion, easing its short-term liquidity issues.

American Airlines (NASDAQ:AAL) stock was up 15.0% and Delta Air Lines (NYSE:DAL) stock was up 13.4% in anticipation of an early lifting of some lockdown restrictions across the U.S. after signs that the rate of new infections may be close to plateauing in some hotspots such as New York City.

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