CNBC.com’s MacKenzie Sigalos brings you the day’s top business news headlines. On today’s show, CNBC.com’s Pippa Stevens explains what brought OPEC talks to a standstill and what it means for your wallet. Plus, shares of ‘Uber of China’ Didi plummet after China bans downloads of the app during an ongoing probe.
OPEC discord could unleash a new level of volatility in oil market
Disagreement within OPEC could trigger a more a volatile period for oil, with prices jumping on lack of new supply or sinking suddenly if member countries decide to release crude independently.
Oil prices initially surged to a six-year high on news that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, ended their meeting Monday with no action and no new meeting date. A proposed plan by OPEC, Russia and other allies to bring 400,000 barrels a day back to the market was disrupted by the United Arab Emirates’ objection to other aspects of the deal.
West Texas Intermediate crude futures for August traded as high as $76.98 Tuesday before falling back to settle down 2.4% at $74.53 per barrel. Many analysts had expected oil to rise on the discord among members of OPEC, and say prices could still climb despite the sell-off.
Didi shares tank as traders react to China’s crackdown
Shares in ride-hailing giant Didi Chuxing closed down more than 19% on Tuesday, less than a week after the Chinese app listed on the New York Stock Exchange.
The company’s share price briefly fell to a low of $11.58, down 25% from $15.53 at the last market close.
The fall comes after China announced late Friday that new users in the country would not be able to download the app while it conducts a cybersecurity review of the company.
Traders, who couldn’t buy or sell the stock on Monday as markets were closed, reacted to the news Tuesday. Shares in other Chinese names that are listed on U.S. stock markets also fell, with Baidu dropping around 4%, JD shedding roughly 3.5% and Alibaba slipping more than 2%.
Pentagon cancels $10 billion JEDI cloud contract that Amazon and Microsoft were fighting over
The Department of Defense announced Tuesday it’s calling off the $10 billion cloud contract that was the subject of a legal battle involving Amazon and Microsoft. But it’s also announcing a new contract and soliciting proposals from both cloud service providers where both will likely clinch a reward.
The JEDI, or Joint Enterprise Defense Infrastructure, deal has become one of the most tangled contracts for the DOD. In a press release Tuesday, the Pentagon said that “due to evolving requirements, increased cloud conversancy, and industry advances, the JEDI Cloud contract no longer meets its needs.”
Shares of Microsoft were down about 0.4% following the news and Amazon’s stock was up 3.5% after already reaching a 52-week high.