The stock market continued to decline on Wednesday, driven by a sharp rise in consumer prices that raised further inflation fears. The US consumer price index rose 0.8% in April, with higher gasoline prices playing a major role in the recovery. This sent stock traders scrambling once again for cover. At 10:45 a.m. EDT, Dow Jones Industrial Average (DJINDICES: ^ DJI) was down 276 points to 33,993. The S&P 500 (SNPINDEX: ^ GSPC) lost 41 points to 4.110, and the Nasdaq Composite (NASDAQINDEX: ^ IXIC) yielded an additional 227 points to 13,163.
However, even on the worst days of the downside, there are still some stocks that manage to shine. Today, fuboTV (NYSE: FUBO) was a big winner after the connected TV specialist posted a good quarter of performance. Somewhere else, Western Oil (NYSE: OXY) paved the way for a group of stocks benefiting from the inflation news.
A great show for fuboTV
Shares of fuboTV rose 12% on Wednesday morning. The live TV streaming company posted impressive results that gave investors more confidence in its long-term prospects.
The growth of fuboTV has been strong. Revenue climbed 135% in the first quarter to nearly $ 120 million. The company more than doubled its number of subscribers year over year to 590,000. Advertising revenue has tripled from just 12 months ago.
Still, fuboTV doesn’t think its growth is going to go away anytime soon. The company reported 78 million homes that still use the old cable and pay TV services, and it believes those customers are ripe to be taken. By the end of 2021, fuboTV plans to add 240,000 to 260,000 additional subscribers, with revenue rates likely to increase slightly from current levels.
Streaming video has been a disruptive force in entertainment, and television is just the latest area in which businesses are seeing massive change. So far, fuboTV has taken full advantage of this transformation and shareholders are reaping the rewards today.
An energetic day
Meanwhile, Occidental Petroleum saw its shares climb nearly 7% on Wednesday morning. This has driven a group of oil and gas companies on the rise, with some smaller players in the oil services and refining businesses registering even larger percentage moves in some cases.
The fundamentals of the energy industry in general have improved a lot recently and today some of these positive trends have continued. Crude oil prices have climbed more than $ 1 a barrel to hit $ 66, moving further into territory where many producers are able to extract oil from the ground profitably.
Meanwhile, the closure of the Colonial Pipeline has resulted in widespread gasoline shortages and even complete blackouts across much of the Southeastern United States, from Virginia and Tennessee to South Florida. While these impacts will not necessarily have a long-term impact on Occidental or other players in the energy industry, they nonetheless underscore the extent to which the growing demand for economic recovery has the capacity to exacerbate any unexpected event. .
Occidental’s earnings report on Tuesday morning showed positive cash flow but continued weakness in production volumes and ongoing losses. However, if oil prices stay where they are or climb higher, it could finally move West’s business more sustainably in the right direction.
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