January through March of this year was the best quarter for the sector since 1970, according to BofA Global Research. While the S&P 500 is down roughly 13% year to date, the energy sector is up 49%. That follows a year when energy stocks beat the broader index by 21 percentage points.


Oil Prices Top $100, Yet Some Big U.S. Frackers Let Their Production Fall

Oil prices are at their highest in years and politicians want companies to pump more. But most large American frackers are standing pat, or even letting production decline, and instead are handing investors cash.

Much of the U.S. shale industry recently reported higher profits than in the same quarter a year earlier, but companies aren't reinvesting more in production-indeed, some have let U.S. output slip as they focus on paying investors. Nine of the largest U.S. oil producers this week said they shelled out a combined $9.4 billion to shareholders via dividends and share repurchases in the first quarter, about 54% more than they invested in new oil developments.


Pentagon's China Warning Prompts Calls to Vet U.S. Funding of Startups

WASHINGTON, D.C.-Congress may soon require government agencies to vet tech startups seeking federal funding, after a Defense Department study found China is exploiting a popular program that funds innovation among small American companies.

The study, which was viewed by The Wall Street Journal, found China is using state-sponsored methods to target companies that have received Pentagon funding from the Small Business Innovation Research program. The SBIR program for decades has sought to promote innovation through a competitive U.S. government award process.


China Remains an Outlier in a World of Surging Inflation

HONG KONG-As inflation soars around the world, the world's second-largest economy has kept it at bay.

Consumer prices in China increased just 1.5% in March from a year earlier, after rising 0.9% in 2021 from the year before.


Port Labor Talks Pose New Complication for Supply Chain

West Coast dockworkers and cargo-handling companies are due this week to begin contract negotiations that carry high stakes for an American economy that has been wracked by supply-chain disruptions.

The labor talks cover about 22,400 workers at 29 ports, including the big Southern California facilities that make up the country's busiest gateway for imported goods. Similar negotiations have been long and contentious in previous years, leading to extensive disruptions and delays in the flow of goods.


EU Considers Insurance Ban for Ships Carrying Russian Oil

Insurance could be the next financial weapon deployed by the European Union against Russia.

EU officials have proposed a ban on insuring ships that carry Russian oil, a move aimed at blocking Russia's access to global oil markets and the revenue that has fueled its military invasion of Ukraine.


Soaring Demand for Palm Oil Puts Rainforests at Risk Again

Pressure from businesses and environmental groups has slowed the destruction of rainforests to produce palm oil in Indonesia, Southeast Asia's largest country.


U.S. Targets Russian Media, Bank Executives With New Sanctions

WASHINGTON-The Biden administration announced new sanctions targeting Russian state-controlled media and banking executives, a ban on Americans providing accounting and management-consulting services and new export controls targeting the country's industrial sector.

The package will seek to clamp down on advertising dollars flowing into three Russian television stations, bar U.S. consulting firms from providing services to Russian companies seeking to evade sanctions and limit Russia's access to industrial engines, motors and bulldozers. It also targets more than 2,600 Russian and Belarusian military, including personnel involved in alleged war crimes in Bucha.


Congress Set to Clash on Abortion Following Draft Opinion on Roe v. Wade

WASHINGTON-Congress returns this week to debate access to abortion, more U.S. aid to Ukraine and new funding to combat Covid-19, taking up high-stakes domestic and foreign matters ahead of a late-May Memorial Day break.

The Senate is expected to clash over an abortion measure as Democrats and Republicans maneuvered following the leak of a draft Supreme Court opinion that suggested the court was preparing to overturn the landmark Roe v. Wade decision.


Ukraine Fights for Besieged Mariupol as Russia Marks Key Date

Russian and Ukrainian forces engaged in strikes and counteroffensives over the weekend ahead of Moscow's Monday commemoration of World War II, with Kyiv bracing for possible heavy attacks or a stepped-up mobilization effort by President Vladimir Putin.

In Ukraine's east, authorities said Sunday that a Russian airstrike in the Luhansk region was believed to have killed some 60 villagers who had taken refuge in a school. In the besieged southeastern city of Mariupol, Ukrainian forces vowed to fight until the end as they pleaded for government help. Ukrainian troops, meanwhile, pushed north and northeast of Kharkiv after ousting Russian forces from key towns in its vicinity.


Write to paul.larkins@dowjones.com TODAY IN CANADA

Earnings:

Aptose Biosciences 1Q

Ballard Power 1Q

Chemtrade Logistics 1Q

Element Fleet 1Q

Ensign Energy 1Q

Ero Copper 1Q

Finning Intl 1Q

Hudbay Minerals 1Q

Maxar Tech 1Q

Ovintiv 1Q

Profound Medical 1Q

Ritchie Bros. Auctioneers 1Q

Suncor Energy 1Q

Economic Indicators (ET):

0830 Mar Building Permits

Other News:

Canada's Trudeau in Kyiv to Meet With Zelensky


Expected Major Events for Monday

00:30/JPN: Apr Japan Services PMI

06:45/FRA: Mar Foreign trade

06:45/FRA: Mar Balance of payments

08:59/JPN: Mar Provisional Labour Survey - Earnings, Employment & Hours Worked

12:30/CAN: Mar Building permits

14:00/US: Mar Monthly Wholesale Trade

14:00/US: Apr Employment Trends Index

23:01/UK: Apr BRC-KPMG Retail Sales Monitor

23:30/JPN: Mar Household Spending

All times in GMT. Powered by Kantar Media and Dow Jones.


Expected Earnings for Monday

A&W Revenue Royalties Income Fund (AW.UN.T,AWRRF) is expected to report for 1Q.

Amicus Therapeutics Inc (FOLD) is expected to report $-0.25 for 1Q.

Audacy Inc (AUD) is expected to report for 1Q.

Beasley Broadcast Group (BBGI) is expected to report for 1Q.

Biohaven Pharmaceutical Holding Co Ltd (BHVN) is expected to report $-2.53 for 1Q.

Blue Apron Holdings Inc (APRN) is expected to report for 1Q.

Bluerock Residential Growth REIT Inc (BRG) is expected to report for 1Q.

Cabaletta Bio Inc (CABA) is expected to report for 1Q.

Duke Energy Corp (DUK) is expected to report $1.30 for 1Q.

Eagle Pharmaceuticals Inc (EGRX) is expected to report $3.19 for 1Q.

Elanco Animal Health Inc (ELAN) is expected to report $0.03 for 1Q.

Emerald Holding Inc (EEX) is expected to report for 1Q.

Energizer Holdings Inc (ENR) is expected to report $0.37 for 2Q.

Ensign Energy Services Inc (ESI.T,ESVIF) is expected to report $-0.15 for 1Q.

Essential Utilities Inc (WTRG) is expected to report for 1Q.

Fulcrum Therapeutics Inc (FULC) is expected to report for 1Q.

Genie Energy Ltd (GNE) is expected to report for 1Q.

HF Sinclair Corp (DINO) is expected to report for 1Q.

Hawaiian Electric Industries (HE) is expected to report $0.42 for 1Q.

Heska Corp (HSKA) is expected to report $-0.17 for 1Q.

Hilton Grand Vacations Inc (HGV) is expected to report $0.45 for 1Q.

Holly Energy Partners LP (HEP) is expected to report $0.39 for 1Q.

Johnson Outdoors (JOUT) is expected to report $1.85 for 2Q.

Jones Lang LaSalle Inc (JLL) is expected to report $2.10 for 1Q.

Lincoln Educational (LINC) is expected to report $0.06 for 1Q.

Madison Square Garden Entertainment Corp (MSGE) is expected to report for 3Q.

Madrigal Pharmaceuticals Inc (MDGL) is expected to report $-3.58 for 1Q.

Overseas Shipholding Group Inc - Class A (OSG) is expected to report for 1Q.

Party City Holdco Inc (PRTY) is expected to report $-0.02 for 1Q.

R1 RCM Inc (RCM) is expected to report $0.11 for 1Q.

RadNet (RDNT) is expected to report $-0.03 for 1Q.

Sutro Biopharma Inc (STRO) is expected to report $-0.76 for 1Q.

Tegna Inc (TGNA) is expected to report $0.57 for 1Q.

Tredegar (TG) is expected to report for 1Q.

TreeHouse Foods Inc (THS) is expected to report $-0.44 for 1Q.

Tyson Foods (TSN) is expected to report $1.92 for 2Q.

Vaxart Inc (VXRT) is expected to report $-0.15 for 1Q.

Veritiv (VRTV) is expected to report $3.73 for 1Q.

Viatris Inc (VTRS) is expected to report for 1Q.

WideOpenWest Inc (WOW) is expected to report $0.11 for 1Q.

Powered by Kantar Media and Dow Jones.


ANALYST RATINGS ACTIONS

Ardelyx Cut to Neutral From Overweight by Cantor Fitzgerald

Ball Corp Cut to Sector Perform From Outperform by RBC Capital

BancFirst Cut to Underweight From Neutral by Piper Sandler

Bandwidth Cut to Hold From Buy by Needham

Black Hills Corp Cut to Neutral From Buy by Mizuho

Boot Barn Holdings Raised to Overweight From Neutral by Piper Sandler

Clovis Oncology Cut to Neutral From Buy by HC Wainwright & Co.

Corteva Cut to Neutral From Overweight by JP Morgan

Entasis Therapeutics Cut to Neutral From Overweight by Cantor Fitzgerald

EPAM Systems Raised to Buy From Neutral by B of A Securities

fuboTV Cut to Neutral From Buy by Roth Capital

fuboTV Cut to Underweight From Neutral by JP Morgan

Hanesbrands Cut to Hold From Buy by Stifel

Hersha Hospitality Raised to Buy From Hold by Stifel

iRobot Cut to Underweight From Neutral by JP Morgan

Joint Cut to Hold From Buy by Craig-Hallum

Jounce Therapeutics Raised to Strong Buy From Outperform by Raymond James

Lancaster Colony Cut to Hold From Buy by Benchmark

LendingTree Cut to Market Perform From Outperform by Northland Capital Markets

NextGen Healthcare Raised to Buy From Neutral by Guggenheim

(MORE TO FOLLOW) Dow Jones Newswires

05-09-22 0536ET