Diamonds and Dogs

4/2/20

Exxon Mobil (XOM) and Chevron (CVX) are both up over 5% on a phone call to CNBC and a tweet from President Donald Trump saying he is confident Russia and Saudi Arabia will dramatically cut production to bring oil markets back into balance. Trump said in the tweet that he had spoken to the Saudi Crown Prince, who had spoken with Putin. "I expect & hope that they will be cutting back approximately 10 million barrels, and maybe substantially more."

Luckin Coffee (LK) not so lucky. The Starbucks rival and fast-growing Chinese coffee chain is down 75% on news the company board is investigating reports that senior executives and employees fabricated transactions. The company's announcement that Chief Operating Officer Jian Liu and employees reporting to him engaged in misconduct casts doubt on the foundations of the Chinese coffee chain's meteoric rise and its emergence as a key competitor to Starbucks Corp.