Markets nosedive as consumers start to sour on US economy

Dow plunged 748 (near session lows), decliners over advancers about 3-1 & NAZ dropped 438.  The MLP index fell 5 to the 322s & the REIT index slid 2+ to 409.  Junk bond funds were flattish & Treasuries had heavy buying which sharply reduced yields.  Oil fell 2+ to 70 & gold pulled back 8 to 2947 (more on both below).

Dow Jones Industrials

ConocoPhillips (COP) said it would sell its interests in the Ursa & Europa Fields to Shell (SHEL) for $735M, as part of the shale producer's plan to streamline its portfolio. The company has been looking to offload non-core assets to help lower debt after its $22.5B takeover of rival Marathon Oil.  Earlier this month, COP said it was divesting its non-core Lower 48 assets for $600 million.  "This (Shell) transaction reflects our ongoing commitment to further strengthen our portfolio by divesting non-core assets and shows significant progress toward our $2 billion disposition target," COP said.  The transaction is expected to close by the end of the 2nd qtr of 2025 after which Shell's working interest in Ursa would increase to 61.35% from 45.4%.  SHEL said the acquisition expands its ownership in an established long-producing asset that "generates robust free cash flow, while also providing more options for growth."  COP stock fell 4.11 & SHEL stock finished down 1.67.

ConocoPhillips to sell interests in Ursa and Europa Fields to Shell for $735 million

Facebook parent company Meta (META) recently announced that it approved bonuses of up to 200% for its exec.  In a filing with the SEC, META said that its Compensation, Nominating & Governance Committee (CNGC) approved an increase in the target bonus percentage for named execs other than CEO Mark Zuckerberg.  The change increases bonuses from 75% of the named exec officer's base salary to 200% of their salary, & would start taking effect with the company's 2025 annual performance period.  "In approving this increase, the CNGC considered that the target total cash compensation for the named executive officers (other than the CEO) was at or below the 15th percentile of the target total cash compensation of executives holding similar positions at the peer group of companies that the Company benchmarks against for executive compensation purposes," Meta said.  With the change, the total cash compensation for the non-CEO exec at META "falls at approximately the 50th percentile of the Peer Group Target Cash Compensation."  The stock sank 11.29.

Meta approves bonuses of up to 200% for company execs as it lays off workers

In a recent report, the Services PMI (Purchasing Managers' Index), a key indicator of economic health in the private sector, was recorded at 49.7. This figure, published monthly by Markit Economics, is significantly lower than the forecast of 53.0, indicating a potential slowdown in the economy.  The PMI index is based on surveys of over 400 execs in private sector service companies, including sectors such as transport & communication, financial intermediaries, business & personal services, computing & IT, hotels & restaurants.  An index level of 50 denotes no change since the previous month, while a level above 50 signals an improvement, & below 50 indicates a deterioration.  The recent 49.7 reading is not only lower than the forecast but also shows a slight dip compared to the previous month's figure of 52.9.  This could be a sign of a potential economic slowdown, as a reading below 50 indicates a contraction in the services sector, which could have ripple effects on the broader economy.  The PMI is a significant indicator, as it is one of the most closely watched business surveys in the world, often moving markets & influencing economic policy.  A reading that is stronger than forecast is generally supportive (bullish) for the$, while a weaker than forecast reading is generally negative (bearish) for the $.  The lower-than-expected PMI reading could potentially impact the $ negatively.

US Manufacturing PMI exceeds expectations, indicating sector expansion

Gold prices eased as investors booked profits from the previous session's record high, but were set for an 8th straight weekly gain, driven by strong safe-haven demand amid concerns over Pres Trump's tariff plans.  Spot gold shed 0.1% to $2939 an ounce.  Bullion has gained around 1.9% this week after rising to a record $2954 yesterday.  US gold futures settled 0.1% lower at $2953.  It's just a classical movement of new all-time highs & profit-taking, but the fundamentals for gold remain solid.  Prices have shattered 2 record highs this week to trade above $2950 an oz, as uncertainties surrounding global economic growth & political instability have underscored investor appetite for bullion, which has risen 11.5% so far in 2025.

Gold eases from record high on profit-taking, eyes eighth weekly gain

Oil fell after the breach of a key technical level accelerated losses driven by the possibility of increased flows from Iraq, weakening the prospects of supply constraints that have gripped the market recently.  West Texas Intermediate slid more than 2% to trade below $71 a barrel, with the drop deepening after prices dipped below their 100-day moving average of about $71.51.  The decline puts oil at risk of its 5th straight weekly loss, which would be the longest streak in more than a year.  Crude has been trapped in a roughly $5 range for the past 3 weeks because of an uncertain outlook for supply, including increasing expectations that OPEC+ will delay a planned production increase & a drone attack that threatened Kazakh pipeline flows.  At the same time, Pres Trump's rapid-fire tariff actions & other policy decisions have dimmed the outlook for demand & boosted US consumers' expectations for long-term inflation.  OPEC+ postponing its 120K barrel-a-day output hike, a move delegates are flagging as a possibility, would mark the 4th time the group delayed plans to revive production halted in 2022.  At present, the alliance aims to restore a total of 2.2M barrels a day in monthly increments, starting in Apr.

Oil Falls After Weak Technicals Accelerate Supply-Driven Losses

Stocks fell as all 3 major indices looked set to record losing weeks.  There are signs that the uncertainty is starting to weigh on consumers.  Sentiment took a hit this month as Americans anticipate tariff-induced price hikes.  Additional economic data hinted at fading optimism. US business activity growth came close to stalling in Feb, according to flash PMI survey data published today.  Business expectations for the year ahead slumped, weighed down by uncertainty related to federal gov policies.  Dow gave back a significant 418 last week.