Key Highlights

● Conoco set an intraday record high Friday as tanker attacks sent energy stocks soaring.

● Visa, Mastercard, MetLife, McKesson, Expeditors and Box also touched intraday records.

● All but seven of 75 S&P 500 technology stocks closed lower.

● The Fed decides Oct 28, with four energy earnings reports due Oct 20–23.

A new peak for Conoco

ConocoPhillips (NYSE:COP) hit an intraday record high on Friday as tanker attacks in the Strait of Hormuz sent energy stocks soaring. The Houston-based company is one of the world's largest independent exploration and production companies, with operations in US shale basins, Alaska and several international regions. Because it does not run refineries, its results depend heavily on crude and natural gas prices.

Conoco was in select company. Visa (NYSE:V), Mastercard (NYSE:MA), MetLife (NYSE:MET), McKesson (NYSE:MCK), Expeditors (NYSE:EXPD) and Box (NYSE:BOX) also set intraday records, market data showed, a list that reflected the day's rotation into energy, financials and defensive sectors.

Oil's surge

Brent crude climbed $3.94 to settle at $109.86 a barrel, its highest close since May 19. The international benchmark touched $110 during the session for the first time since May. West Texas Intermediate also rose; one report had the December contract at $99.02, up $2.52, while others cited figures above $101.

Iran escalating attacks on tankers in the Strait of Hormuz drove the move, along with threats to Russian refining, according to market reports. ING commodities strategists said oil is "pricing in a significant risk premium."

"Now, we're looking at Pickaxe Mountain. We may have to go there," President Donald Trump said of Iran.

The sector rallied broadly

Energy was the top-performing sector in the S&P 500. Diamondback Energy (NASDAQ:FANG), Kinder Morgan (NYSE:KMI), Targa Resources (NYSE:TRGP) and EOG Resources (NYSE:EOG) all jumped. Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) rose too.

The broader market went the other way. The S&P 500 fell 84.62 points to 7,659.44, the Dow Jones Industrial Average dropped 175.28 points to 52,002.41 and the Nasdaq Composite slid 572.99 points to 26,140.03. The S&P 500 posted its biggest weekly drop since June, and the Nasdaq had its worst week since June.

Technology stocks led the decline as investors questioned the financing of the artificial-intelligence build-out. All but seven of the 75 S&P 500 technology stocks closed lower. One market commentator said, "That is a change in character, and it's another reason the leaders no longer look like a safe haven."

Relief valves

Some forces could temper the oil rally. The International Energy Agency pledged to release the remaining 100 million barrels under its March agreement, a Saxo Bank analyst noted. In Washington, Rep. Gregory Meeks introduced a bipartisan bill to revoke Russian energy transaction licenses.

For consumers, the effect is already visible: US gasoline averages $4.33 a gallon, compared with $3.06 a year earlier. September consumer prices also came in hotter than expected.

Conoco Peers Face a Busy Earnings Run

The Federal Reserve's next decision lands Oct 28. Chair Kevin Warsh, at an IMF gathering in Bangkok, said: "I don't prejudge meetings." Markets still price a hike by December, though October odds fell sharply after spiking on Wednesday's CPI report. Energy earnings start rolling in next week with Halliburton (NYSE:HAL) on Oct 20, Kinder Morgan on Oct 21, Valero (NYSE:VLO) on Oct 22 and SLB (NYSE:SLB) on Oct 23. Developments in the Strait of Hormuz will remain the dominant driver for Conoco and its peers.