Good Evening! The U.S. stock market ended a volatile day higher on Wednesday as investors pondered the prospects for interest rates following January economic data revealed robust consumer spending and an increase in inflation.
In the last ten minutes of trading, all three main averages moved into positive territory after declining for most of the day. The S&P 500 rose by 0.28%, whilst the Dow Jones increased by 0.11%. The Nasdaq Composite led the way by rising 0.92%.
LOWER PRODUCTION AND HIGHER SPENDING
Shares of U.S. shale oil producer Devon Energy (DVN) plummeted 11% after the firm disclosed fourth-quarter results that fell short of analyst expectations due to higher-than-anticipated spending.
- Revenue: $4.29 Billion vs. $4.64 Billion Expected
- Earnings Per Share: $1.66 vs. $1.75 Expected
Possible reasons? Winter Storm Elliott brought subfreezing temperatures and severe weather to almost two-thirds of the United States in December, resulting in oil and gas well freeze-ins. In addition, the company anticipates total capital expenditures to range between $3.6 billion and $3.8 billion in 2023, with increased spending in the first half owing to the temporary addition of a fourth frac crew to the Delaware Basin.
IT'S ONLY GOING TO GET BIGGER
According to newly disclosed statistics from the American Gaming Association (AGA), sports betting shattered records in 2022.
The Numbers… Sports betting gross game revenue achieved a record $7.5 billion last year, a nearly 75% increase from 2021. Overall gross gaming revenue topped $60 billion for the first time ever (Only accounts for all legal gambling).
What contributed to the massive surge? Increased legality, including the entrance of four new mobile gambling jurisdictions and the maturing of already legal markets, contributed to the increased revenue estimates, according to the AGA.
How big can this grow? Currently, sports betting is permitted in 33 states and the District of Columbia, while eight states have ongoing bills to authorize it. If this law succeeds, Texas would become the biggest location for legal sports betting among these states.