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Hess Corp. said its 2016 exploration and production capital and exploratory budget will be $2.4 billion, a 40% reduction from the $4 billion spend in 2015 and a 20% reduction from the guidance of $2.9 billion to $3.1 billion provided in October. The company is maintaining its October forecast of an average of between 330,000 and 350,000 barrels of oil per day in 2016, it said in a Tuesday release. Bakken net production is still forecast between 95,000 and 105,000 barrels of oil per day. Hess shares are up 0.6% in premarket trading, but down 52% for the past 12 months. The S&P 500 is down 8.8% for the past year.

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Sprint Corp.’s stock soared 17% in premarket trade Tuesday, after the telecommunications company’s narrower-than-expected fiscal third-quarter loss and upbeat full-year outlook offset a slight revenue miss. For the quarter ended Dec. 31, the company lost $836 million, or 21 cents a share, after losing $2.38 billion, or 60 cents a share, in the same period a year ago. The FactSet consensus for per-share losses were 24 cents. Revenue fell to $8.11 billion from $8.97 billion, below the FactSet consensus of $8.25 billion. Sprint had net postpaid phone additions of 366,000, after net losses of 205,000 a year ago, while postpaid churn improved 68 basis points to 1.62%. The company raised its full fiscal-year outlook for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to a range of $7.7 billion to $8 billion from $6.8 billion to $7.1 billion. “Revenue has stabilized, costs are coming out faster than expected, postpaid phone net additions were the highest in three years, postpaid churn was the lowest-ever for a third quarter, and the network is performing at best-ever levels,” said Chief Executive Marcelo Claure. The stock has plunged 47% over the past three months through Monday, while the S&P 500 has lost 12%.

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3M shares rose 1% in pre-market trade Tuesday after the company beat fourth-quarter earnings expectations. 3M reported net income of $1.04 billion, or $1.66 per share, down from $1.18 billion, or $1.81 a share, in the year-earlier period. The company reported adjusted earnings per share of $1.80, above the FactSet consensus of $1.63. 3M reported sales of $7.298 billion, below $7.72 billion in the year-earlier period, but beating the FactSet consensus of $7.21 billion. The company affirmed its 2016 outlook, saying it expects earnings in the range of $8.10 to $8.45 a share.

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Lockheed Martin has agreed to a $5 billion deal that will separate and merge its Information Systems & Global Solutions segment with Leidos Holdings, Inc. , also a defense company, Lockheed announced Tuesday. Under the terms of the deal, Lockheed will receive a one-time cash payment of $1.8 billion and Lockheed Martin stockholders will receive 50.5% equity in Leidos, worth about $3.2 billion, all of which is still subject to regulatory approval.”This strategic transaction is an important milestone in the portfolio reshaping strategy we announced in July 2015 and allows us to focus on our core business in aerospace and defense,” said Marillyn Hewson, CEO of Lockheed Martin, in the press release. The transaction is expected to close in the third or fourth quarter of 2016 and is also subject to approval by Leidos stockholders. Shares of Lockheed Martin were down less than 1% in premarket trade Tuesday.

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Johnson & Johnson reported Tuesday fourth-quarter earnings that rose to $3.22 billion, or $1.15 a share, from $2.52 billion, or 89 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.44, above the FactSet consensus of $1.42. Sales declined 2.4% to $17.81 billion, just shy of the FactSet consensus of $17.88 billion, with a 12% decline in international sales offsetting an 8% increase in the U.S. Sales in its consumer division declined 7.9% to $3.32 billion, missing the FactSet consensus of $3.5 billion. The drug and consumer products company said it expects 2016 sales of $70.8 billion to $71.5 billion, below the FactSet consensus of $71.94 billion. “As we enter 2016, our core business is very healthy, and the recent decisive actions we’ve taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in,” Chief Executive Alex Gorsky said. The stock, which was still inactive in premarket trade, has lost 3.5% over the past three months while the Dow Jones Industrial Average has lost 9.4%.

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Luxury accessories maker Coach Inc. said Tuesday it had net income of $170 million, or 61 cents a share, in its fiscal second quarter, down from $183 million, or 66 cents a share, in the year-earlier period. Adjusted per-share earnings came to 68 cents, ahead of the FactSet consensus of 66 cents. Sales rose to $1.27 billion from $1.22 billion, slightly below the FactSet consensus of $1.28 billion. Chief Executive Victor Luis said the company made significant progress in its transformation plan in the quarter, despite the difficult global retail environment. “We drove further sequential improvement in our North America bricks and mortar business – led, as expected, by our retail stores, while our outlet store channel also strengthened against a backdrop of lower tourist traffic and a highly promotional environment,” he said in a statement. Coach is now expecting to return to top line growth in fiscal 2016 and to achieve positive North American comparables by the fourth quarter. Shares were not yet active in premarket trade, but are down 18% in the last 12 months, while the S&P 500 has lost about 9%.

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DuPont Co. [S: DD] on Tuesday reported fourth-quarter operating earnings of 27 cents a share, down from 57 cents a year ago. Analysts polled by FactSet had expected per-share earnings of 27 cents. The company said quarterly revenue fell to $5.3 billion, down 9% from a year ago and slightly below the consensus estimate of $5.36 billion. Shares in DuPont were inactive in premarket trading early Tuesday.

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Kuwait’s OPEC Governor Nawal al-Fuzaia hinted on Tuesday that the Organization of the Petroleum Exporting Countries is ready to cut production in an effort to stem the persistent slump in oil prices. The governor told an energy forum in Kuwait that the cartel is ready to “cooperate” with others to stabilize the oil market, according to media reports. “OPEC is willing to cooperate with producers outside the group if they show that they are serious about cooperating with OPEC. Non-OPEC producers keep on making statements that they are willing to cooperate, but the reality is different,” she said, according to Dow Jones Newswires. She also said prices are unlikely to climb back to 2014 levels of more than $100 a barrel and instead they could wobble around $40-$60 a barrel until 2020. Al-Fuzaia’s comments came as crude and Brent prices both slid below $30 a barrel on Tuesday, sending renewed shivers through global financial markets. Prices, however, reversed and moved higher later in Tuesday’s session.
UPDATE: This report has been updated to clarify that al-Fuzaia said OPEC, and not specifically Kuwait, is willing cooperate with non-members.

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The U.K. Treasury said on Tuesday Andrew Bailey will take over the helm as chief executive of the Financial Conduct Authority and serve a five-year term. Bailey, who is currently deputy governor of the Bank of England, will succeed Tracey McDermott, who has acted as interim CEO since Martin Wheatley stepped down from the post in September last year. The appointment of Bailey was seen as a surprise choice, as he had not been mentioned before in relation to who would take over after Wheatley. “We have cast the net far and wide for this crucial appointment and, having led the Bank of England’s response to the financial crisis, Andrew is simply the most respected, most experienced and most qualified person in the world to do the job,” said Chancellor of the Exchequer George Osborne in the statement.

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Kuwait’s OPEC Governor Nawal al-Fezaia hinted on Tuesday that the oil-rich nation is ready to cut production in an effort to stem the persistent slump in oil prices. The governor told an energy forum in Kuwait that the country is “ready to cooperate” with others to stabilize the oil market, according to media reports. However, she noted that producers outside the cartel are not yet ready to cooperate, the reports said. She also said prices are unlikely to climb back to 2014 levels of more than $100 a barrel and instead they could wobble around $40-$60 a barrel until 2020. Al-Fezaia’s comments came as crude and Brent prices both slid below $30 a barrel on Tuesday, sending renewed shivers through global financial markets.

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