Editor
Energy infrastructure and oil services stocks dominated trading on Monday, as investors positioned themselves for a massive reconstruction of Venezuela’s crippled oil sector following the dramatic ouster of Nicolas Maduro.
The geopolitical shift triggered an immediate relief rally among U.S. giants. Chevron—the only American major to maintain a precarious foothold in the country through the crisis—saw its shares climb 7%, while Exxon Mobil gained 4.2%. However, the real story was in the “picks and shovels” of the oil patch; Halliburton, the oilfield services titan, popped 9% as traders bet on a flood of new contracts to repair Venezuela’s decaying wells.
Rebuilding the Belt
The logic on the floor is simple: decades of underinvestment and sanctions have left one of the world’s largest oil reserves in shambles.
“This isn’t just about pumping more crude; it’s about a total overhaul of the country’s energy infrastructure,” says Marcus Thorne, a senior energy analyst at Kestrel Markets. “You can’t just turn a tap and expect 1990s levels of production. You need Halliburton’s tech and Chevron’s logistics to rebuild the backbone of that economy. The market is smelling a decade-long capex cycle.”
Tech Tensions: Uber and the Autonomous Threat
While the energy sector celebrated, the mood was decidedly grimmer for Uber Technologies. Shares of the ride-hailing giant slipped 1% following a stinging downgrade from Melius Research, which moved the stock from ‘Hold’ to ‘Sell.’
The crux of the concern? The looming shadow of Waymo and Tesla. Melius warned that if standalone autonomous expansions accelerate across the U.S., Uber’s middleman model could be squeezed. “There is a growing sense that the market is blind to the autonomous headwind,” noted a source familiar with the research. “If the hardware makers decide to own the network, Uber’s valuation looks increasingly fragile.”
M&A and Biotech Wins
In other corners of the market, the mood remained transactional and upbeat:
Phillips 66: The refiner edged up 1% after picking up assets from the liquidated Lindsey Oil Refinery. It’s a classic consolidation play, folding the assets into its existing Humber Refinery in the U.K.
Arrowhead Pharmaceuticals: The Pasadena-based biotech gained nearly 3% on news that Health Canada cleared its drug, Redemplo, for triglyceride management.
Mobileye: The autonomous tech firm jumped 4% after Barclays analysts decided the risk was finally worth the reward, upgrading the stock to ‘Overweight.’
The ‘Duolingo’ Premium
Even the education sector got a nod of approval. Duolingo climbed 4% after Bank of America suggested that analysts are thinking too narrowly about the app. BofA’s thesis? Duolingo isn’t just a textbook—it’s an entertainment platform. By capturing “doom-scrolling” time and turning it into learning, the bank argues the company has a growth runway that isn’t yet reflected in the price.
Looking Ahead
As the week opens, the broader indices are being buoyed by the usual suspects. Nvidia and Micron rose 1.2% and 3.8% respectively, keeping the tech-heavy Nasdaq futures in the green. But for the coming month, all eyes remain on Caracas. Whether the “peace dividend” in Venezuela can actually translate into barrels of oil remains to be seen, but for now, the market is buying the dream of a South American energy renaissance.
