Oil up 4% and Paychex climbs on raising annual outlook.
Bulls storm back in on Hurricane
Oil prices ended on a high after the Wednesday session for a second day on the bounce, rebounding from recent losses as the dollar took a step back. The shut-ins over the hurricane combined with positive US inventory data on energy sent crude price up approximately 4% on the day. US crude settled at $82.15 per barrel, up $3.64 or 4.7%, to extend Tuesday’s 2.3% (investing.com). A positive ending especially after a near 16% drop over previous weeks. The stockpiles of crude also fell by 251,000 barrels during the week ending on 23rd September, against forecast by analysts for a build of 2 million (investing.com). Before the decline, crude stocks were increasing non-stop for three weeks, growing by almost 12 million barrels.
America’s top automobile fuel fell by 2,422 million barrels last week against expectations for a build of 500,000. Furthermore, compared to the previous week, gasoline inventories increased by 1,569 million barrels (investing.com). Additionally, the oil needed for creating the diesel that is required for buses, trains and trucks fell by 2,781 million barrels last week, against forecasts for a build of 600,000. However, it was the dollar’s sharpest one-day drop in 3 months that was a gift for the bulls. The dollar index was around the 112.5 mark on Wednesday – down 1.3%, lowest since June.
No suprise that shares continue to rise
Paychex reported its earnings as expected sending its shares higher, currently up 3%. The payroll and HR company reported Q2 earnings per share of $1.03, $0.06 better than the analysts’ predictions. Revenue also came out better than the estimates, $1.21 billions versus the estimate of $1.18 billion (investing.com). Looking into the future, the firm expects adjusted earnings per share to rise in the range of 11-12% which is something for investors to keep an eye on. The CEO of Paychex mentioned that they are off to a good start for the fiscal year 2023, achieving double figures in growth of their revenue and earnings (investing.com). Certainly a stock for investors to monitor, the stock seems healthy and the company does not seem like they are slowing down any time soon.
