5 Things to Know Before Markets Open

News of the day for April 3, 2023

Oil derrick

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Oil prices are climbing after OPEC+ announced a surprise cut in crude production and Tesla's price cuts led to a record number of deliveries in the first quarter. Here’s what investors need to know today.

1. Oil Prices Up after Surprise Announcement on OPEC+ Production Cuts

Light sweet crude is up over 5.3% to $79.68 per barrel after OPEC and its allies announced plans to slash output by 1.15 million barrels per day. Saudi Arabia said the voluntary cuts will start in May, as a “precautionary measure” aimed at stabilizing the oil market. The move boosted large oil stocks in pre-market trading.

2. Tesla Posts Record Deliveries After Price Cut

Tesla delivered 422,875 vehicles worldwide in the first quarter, setting a record after it slashed prices to boost demand. The deliveries were more than the 421,164 vehicles analysts had forecast for Tesla. Tesla also said it produced 440,808 vehicles during the quarter, more than the 432,513 analysts had expected.

3. WWE Shares Drop on News of Sale to UFC Owner

World Wrestling Entertainment (WWE) shares are down 2% in pre-market trading on reports it is nearing a deal to be sold to Endeavor Group (EDR), which owns the Ultimate Fighting Championship at a value of $9.3 billion. As part of the deal, Endeavor’s UFC business and WWE will form a separate publicly traded entity in which Endeavor shareholders would hold 51% and WWE shareholders would retain 49%.

4. McDonald's Closes Offices as Layoffs Loom

McDonald’s will temporarily close its U.S. offices as it prepares to lay off staff. An internal email said employees should work from home this week so it can deliver staffing decisions virtually.

5. Extra Space Storage up on Deal to Buy Rival

Extra Space Storage (EXR) shares are rising 2.5% in pre-market trading after striking a deal worth $12.7 billion to buy smaller rival Life Storage (LSI). Life storage had previously rejected a bid from rival Public Storage.

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  1. CNBC. “OPEC+ announces surprise oil cuts, while U.S. calls the move inadvisable.”

  2. Reuters. “Tesla posts record quarterly deliveries after price cuts, up 4% from Q4

  3. CNBC. “WWE near deal to be sold to UFC parent Endeavor, sources say.”

  4. NBC News. “McDonald’s reportedly temporarily shuts its U.S. corporate offices ahead of layoffs.”

  5. Marketwatch. “Extra Space Storage to acquire Life Storage in all-stock deal.”

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