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Wall Street turns higher as retail stocks rally

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NEW YORK – Stocks rose on Tuesday, with the S&P 500 moving within points of record levels, as a pair of retail stocks rallied following strong results.

Major indexes had traded lower for much of the session, pressured by some disappointing data, but turned higher in midday trading.

The S&P climbed to record intraday levels on Monday, but the index pulled back in the afternoon and failed to close at a record. The benchmark index is currently 0.5 percent under its record.

“We’re not being aggressive, since valuations aren’t spectacular here, but this certainly isn’t a time to run to cash,” said Rex Macey, chief investment officer at Wilmington Trust in Atlanta, Georgia. “We expect we’ll take two steps forward and one step back for a while.”

In the latest economic data, home prices rose slightly more than expected in December, according to the S&P/Case-Shiller index, but February consumer confidence fell more than expected, dropping to 78.1 from 80.7.

The confidence report was the latest in a string of economic data that came in below forecasts. While many analysts pin the weakness to harsh winter weather rather than weakening fundamentals, trading are looking for evidence the market’s levels are justified.

“We’re waiting to see how much of this weakness is on weather, since if the market gets spooked we could see a big pullback,” said Macey, who helps oversee about $20 billion. “However, you look ahead to 2015, the market likes what it sees, so we would view any pullback as a buying opportunity.”

Home Depot (HD.N) rose 2.3 percent to $79.65. The Dow component’s earnings beat expectations, though sales fell more than expected in the fourth quarter. Macy’s Inc (M.N) gained 4.9 percent to $55.65 after the retailer reported a drop in January sales, though its fourth-quarter earnings rose from the prior year.

The S&P retail index .SPXRT rose 1.6 percent.

The Dow Jones industrial average .DJI was up 11.66 points, or 0.07 percent, at 16,218.80. The Standard & Poor’s 500 Index .SPX was up 1.44 points, or 0.08 percent, at 1,849.05. The Nasdaq Composite Index .IXIC was up 7.31 points, or 0.17 percent, at 4,300.28.

Many traders are looking ahead to Thursday, when Federal Reserve Chair Janet Yellen will speak to the Senate Banking Committee in semi-annual testimony about monetary policy. Her comments will be scoured for insight into how bad weather has affected economic activity, as well as for confirmation the Fed will not change its schedule for trimming stimulus.

Tenet Healthcare Corp (THC.N) late Monday swung to a net loss in its fourth quarter, though adjusted earnings were better than expected. Shares fell 8.4 percent to $44.25.

Biocryst Pharmaceuticals Inc (BCRX.O) rose 12 percent to $13.03 after the Food and Drug Administration accepted the new drug application for its Peramivir product.

Sina Corp (SINA.O) shares fell 8.9 percent to $69.29 a day after the company reported adjusted earnings that beat estimates by a penny, even as revenue jumped 43 percent.

Perry Ellis International Inc (PERY.O) late Monday forecast a fall in quarterly revenue, sending shares down 17 percent to $13, their lowest level since late 2011.

– REUTERS

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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