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Data: Yahoo Finance; Chart: Andrew Witherspoon/Axios

The two largest U.S.-based multinational oil-and-gas giants both announced billions of dollars in second-quarter losses Friday in results that show the pandemic's toll on the industry.

Driving the news: ExxonMobil, citing "global oversupply and COVID-related demand impacts," reported a $1.1 billion loss, compared to $3.1 billion in profits the same period last year.

  • It's Exxon's second consecutive quarterly loss and deeper than Q1's $610 million hit as the company pointed to lower prices, production and sales.
  • But Exxon said that its spending cuts helped cushion the blow. Its capital and exploration spending fell to $5.3 billion in Q2, compared to $8.1 billion in Q2 of 2019.

Meanwhile, Chevron reported a $8.3 billion dollar loss, compared to profits of $4.3 billion in the same period last year.

  • The tally includes write-downs associated with downward estimates of future commodity prices. The company is also taking a $2.6 billion impairment on its investments in Venezuela, where sanctions have upended its ability to operate there.
  • "Even stripping out the impairments, Chevron’s adjusted loss was $3 billion, more than twice the average analyst estimate in a Bloomberg survey and the deepest since at least 1989," Bloomberg notes.
  • Chevron is also reducing spending compared to pre-pandemic plans.

What's next: More headwinds, even though market conditions have improved somewhat.

  • "While demand and commodity prices have shown signs of recovery, they are not back to pre-pandemic levels, and financial results may continue to be depressed into the third quarter 2020," Chevron said.
  • Both companies' stocks were falling in pre-market trading.

Go deeper

Dion Rabouin, author of Markets
Nov 5, 2020 - Economy & Business

The no-wave rally begins

Data: FactSet; Chart: Axios Visuals

U.S. stocks which analysts and strategists insisted had been rising based on the anticipation of a blue wave Democratic victory in the House, Senate and White House — had their best day in nearly seven months as that possibility looked to be wiped off the table.

  • While some races have not yet been called, Democrat Joe Biden looks poised to win in his election against President Trump, but so do many incumbent Republicans senators.

What they're saying: Some attributed the stock market's surge — the Nasdaq rose 3.9% and the S&P 500 gained 2.2% — to the market's happiness with a potential divided government and discounted prospects of tax increases. However, there were other explanations...

Scoop: Gina Haspel threatened to resign over plan to install Kash Patel as CIA deputy

CIA Director Gina Haspel. Photo: Win McNamee/Getty Images

CIA Director Gina Haspel threatened to resign in early December after President Trump cooked up a hasty plan to install loyalist Kash Patel, a former aide to Rep. Devin Nunes (R-Calif.), as her deputy, according to three senior administration officials with direct knowledge of the matter.

Why it matters: The revelation stunned national security officials and almost blew up the leadership of the world's most powerful spy agency. Only a series of coincidences — and last minute interventions from Vice President Mike Pence and White House counsel Pat Cipollone — stopped it.

Updated 10 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus deaths reach 4,000 per day as hospitals remain in crisis mode — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden says, "We will manage the hell out of" vaccine distribution — Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan — Widow of GOP congressman-elect who died of COVID-19 will run to fill his seat.
  3. Vaccine: Battling Black mistrust of the vaccines"Pharmacy deserts" could become vaccine deserts — Instacart to give $25 to shoppers who get vaccine.
  4. Economy: Unemployment filings explode againFed chair: No interest rate hike coming any time soon —  Inflation rose more than expected in December.
  5. World: WHO team arrives in China to investigate pandemic origins.