Shares of Home Depot, which have gained 12.4% this year, dropped nearly 3% to $238.50 in premarket trading, as the company also scrapped its full-year outlook, citing uncertainties stemming from the pandemic. Home Depot said it incurred about $850 million of pre-tax expenses in the first quarter, as it provided additional bonuses, doubled pay for overtime and added more hours of paid time-off for employees working during a surge of panic buying of cleaning supplies and masks. The company’s net earnings fell to $2.25 billion, or $2.08 per share, in the first quarter ended May 3, from $2.51 billion, or $2.27 per share, a year earlier, as it spent heavily to compensate its store employees working during the health crisis.

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Carvana (CVNA), the e-commerce platform for buying and selling used cars, has announced a public offering of 5,000,000 shares of its Class A common stock.The stock closed Monday’s trading at $98.59, and is currently falling 7% in Tuesday’s pre-market trading. According to Bloomberg the offering will be within the price range of $93-$96 per share.“The underwriters will offer the shares from time to time for sale in negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices” the company stated.Citigroup and Wells Fargo Securities will act as book-running managers for the proposed offering.Carvana intends to use the proceeds for general corporate purposes and to partially repay borrowings under its floor plan facility.“While COVID-19 headwinds are apt to persist nearer term, we increasingly believe that on the other side of the crisis, a sustained, even more-favorable backdrop for preowned vehicles and well-positioned, digitally-driven players, such as CVNA will take hold” comments Oppenheimer analyst Brian Nagel.He recently reiterated his buy rating and ramped up his Carvana price target from $95 to $127, arguing that CVNA should prove capital self-sufficient and generate meaningfully positive adjusted EBITDA in 2022.Nagel admits that Carvana shares are not inexpensive, but believes investors will “continue to seek long-term growth and safety in equities of firms situated to thrive amid now-rapidly shifting consumer dynamics.”Overall the stock has a cautiously optimistic Moderate Buy consensus. With the stock up 7% year-to-date, the average analyst price target suggests 11% downside potential lies ahead. (See CVNA stock analysis on TipRanks).Related News: Tesla’s China Car Registrations Plummet In April- LMC Auto Amazon Is Said To Be In Talks To Buy Bankrupt J.C. Penney Saudi Arabia’s Sovereign Fund Snaps Up $7.7B Of US Stocks, Including Boeing and Facebook More recent articles from Smarter Analyst: * Boeing Embarks on Industry-Wide Safety Initiative For New Covid-19 Era * GameStop Pops 5% Amid ‘Significant Progress’ On Turnaround Plan * Tesla’s China Car Registrations Plummet In April- LMC Auto * Novavax Seeks To Raise $250 Million From Share Sale; Top Analyst Bumps Up PT

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(Bloomberg) — Oil held near a two-month high of $35 a barrel as supply curbs tighten the market and demand rebounds in the world’s largest consuming countries.Prices for oil cargoes from Russia to Brazil have surged as fuel demand has recovered. Indian fuel sales have jumped in the first half of May and Chinese consumption has all but returned to where it was before the coronavirus outbreak. South Africa’s biggest oil refinery restarted operations as the country eases coronavirus-lockdown measures.Tuesday also marks the expiry of the June West Texas Intermediate futures contract. While prices plunged at the end of the May contract’s trading period, oil has since staged a stellar recovery as producers embarked on deeper-than-expected output cuts. In a sign that the market is finding a new equilibrium, the premium traders pay for bearish put options versus bullish calls fell to the lowest since early March.On the supply side, shale oil output from the U.S., the world’s biggest producer, is forecast to fall to the lowest since late 2018 next month, according to the Energy Information Administration. There’s also been a “stunning reversal” in OPEC+ shipments so far in May, data intelligence firm Kpler said, after the alliance’s deal to curb production kicked in at the beginning of the month.“There’s a lot of optimism baked in here,” said Paul Horsnell, head of commodities research at Standard Chartered. “The market has balanced by supply coming off faster than expected.”The prospects of a rebound in consumption were buoyed on Monday after American biotechnology company Moderna Inc. said its vaccine showed signs it can create an immune-system response to the virus. Italians were allowed to go back to restaurants and New York is set to open a sixth region as some of the hardest-hit areas in Europe and North America move ahead with restarting their economies.As the recovery gets underway, the nearest corners of the oil market are tightening sharply. WTI’s closest contract settled above the next month on Monday for the first time since January, a sign that concerns over a glut have eased.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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