Crude oil back and forth and Americas 2nd largest provider of HR resources earnings DUE - Wednesday 28th

Crude oil inventories

The US crude oil stockpiles increased more than expected last week as reported by the API (by 4 million), simultaneously, yesterday investors took the long position betting on supply interruptions as Hurricane Ian is expected to make landfall in Florida today. Crude traded at $78.11 a barrel following the report after settling up 2.3% at $78.50 a barrel (investing.com).

However, the oil prices fell rapidly towards the end of the trading hours as a build in the US crude stocks, and further strength in the dollar, outweighed any potential supply disruptions caused by the Hurricane (investing.com). The Hurricane appeared in the US Gulf of Mexico yesterday and is projected to be a danger in the upcoming days. Preparations for the potential impact resulted in approximately 190,000 barrels per day of oil production (11% of the Gulf’s total being shut-in) (investing.com). Investors will be looking for official confirmation from EIA later today, 15:30 ET (10:30 US).

Paychex earnings

As Americas second-largest integrated HR outsourcer of staffing and employment services such as insurance and payroll, the stock has added roughly 4.3% to its share price over the past 12 months (247wallst.com). Fiscal year 2022 was the company’s best year with shares reaching an all-time high, although it has plunged 17.5% since posting a 52-week high in April (247wallst.com). Nevertheless, investors are hoping for Paychex to continue improving its solid free cash flow and boosting its earnings.

According to various analysts the company is expected to report a 9.8% rise in revenue to $1.189 billion from $1.08 billion a year ago, with an estimate mean earnings of 97 cents per share (Reuters) The mean earnings estimate has not changed in the past 3 months. Wall streets median 12-month price target is $130 above its last closing price of $115.02 (Reuters). The data is due to be released by COP Wednesday.