Written by Gary
Futures slide after us suspends J and J vaccine (SPY flat). Biggest premarket movers: Altimeter Growth, Johnson and Johnson, FedEx
Here is the current market situation from CNN Money | |
 | European markets are mixed. The DAX is higher by 0.06%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.43% and 0.07% respectively. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | Big Oils Dwindling Reserves Are A Major ProblemIn the coming years, the power structure of global oil markets is set for a major shakeup if the reserve life of International Oil Companies (IOCs) continues to decline. The dwindling of investments, caused by a very tough economic environment and the growth of activist investing, has resulted in a major decline in new projects and the underdevelopment of existing or prospective opportunities. Citibank warned in a recent research note that IOCs, such as Shell, Exxon, and Chevron, are looking at a major decline of reserve/production life spans.According |
| U.S. Oil Production Still 2 Million Bpd Under Pre-Pandemic LevelsThe EIA might be forecasting that the Permian Basins oil production will be rebounding soon, but overall, todays U.S. oil production is still 2 million barrels per day below the levels seen in January 2020. The EIAs Monthly Drilling Productivity Report is forecasting that for the nations most prolific basin, the Permian, production will return to 4.466 million barrels per day in May. That compares to 3.918 million bpd in May 2020but that was hardly prior to the pandemic. In January 2020, the Permian basins |
| Big Oil Aims To Win Back Investors With Green OilLast month, the Biden administration dealt the fossil fuel industry yet another blow after it proposed the introduction of a carbon tax in a bid to address the greenhouse gas emissions that contribute to climate change. White House National Climate Advisor Gina McCarthy went to great lengths to make it clear that the Biden Administration is not fighting the oil and gas sector, but rather wants to deploy emissions reduction technologies to create union jobs, fuel the American economy and strengthen American manufacturing. Interestingly, executives |
| Could A Comeback In Venezuelan Oil Crash The Markets?Crude oil prices had a rocky start to 2021. There are plenty of wildcards which will continue to fuel price volatility for the foreseeable future, the most notable being supply threats with global oil production expected to expand despite sharply diminished demand growth. One such event is whether Venezuela, after suffering one of the worst economic collapses witnessed outside of war, can rebuild its shattered energy sector and return to pre-2017 production levels to pump more than two million barrels per day. Venezuelas autocratic president |
| Big Oils Reserves Have Dropped By 25% Since 2015The major international oil companies have seen their average crude reserves drop by 25 percent over the past five years, which could be a challenge for Big Oils production and earnings in the coming years. The worlds largest international oil firmsincluding Exxon, Chevron, ConocoPhillips, and the European supermajorshad an average reserve life of 9.5 years as of the end of 2020, which was a drop of 25 percent compared to the average reserve life of oil reserves before the previous oil price crash in 2015, according |
| Saudi Arabias Breakeven Oil Price To Drop To $65 Next YearHigher oil prices and an expected rebound in the global economy and oil demand are set to lower the fiscal breakeven oil price of the major Middle Eastern oil producers this year and next, with the breakeven oil price for Saudi Arabia dropping to $65.70 in 2022 from $77.90 in 2020, the International Monetary Fund (IMF) said. In its regional economic outlook published on Sunday, the IMF forecasts that all oil exporters from the Middle East and North Africa (MENA)except for Iranwill see their fiscal breakeven oil price, the oil price |
| FDA halts use of Johnson & Johnson Covid vaccine due to rare blood-clotting issues in six womenAll six cases occurred in women ages 18 to 48, with symptoms developing six to 13 days after they received the shot. |
| ‘A devastating blow’ ” doctor says pausing J&J Covid vaccine will have far reaching effectsThe supply of the two-shot vaccines from Pfizer and Moderna won’t be able to quickly make up the demand created by the J&J pause, Dr. Kavita Patel told CNBC. |
| Taco Bell to open first digital-only U.S. location in Times SquareTaco Bell will open its first digital-only U.S. restaurant on Wednesday in New York’s Times Square. |
| Electric vertical aircraft maker Beta expands to passenger flights in a deal with BladeBeta Technologies just announced a deal to supply as many as 20 electric vertical aircraft to Blade Urban Air Mobility. |
| Retailers look to innovate and tempt customers back to physical storesIt’s time for retailers to get creative as shopping habits change and customers become more demanding. |
| Cannabis company Aphria looks to add consumer products brands as it waits for U.S. pot legalizationAphria CEO Irwin Simon is looking for additional opportunities to acquire brands in the consumer product space to grow the company past cannabis products. |
| Cramer counts Chipotle, Darden among ‘last man standing’ restaurant plays“As the owner of a couple restaurants, I can tell you that companies like Darden and Chipotle are now taking share from empty storefronts,” the “Mad Money” host said. |
| Stocks making the biggest moves in the premarket: Altimeter Growth, Johnson & Johnson, FedEx & moreThese are some of the stocks posting the largest moves before the opening bell. |
| Cramer sees upside in Boeing after stock pulled back on new 737 Max issue“Even with some short-term turbulence, Boeing’s perfectly positioned as the great reopening goes into full swing,” the “Mad Money” host said. |
| Jim Cramer says Nvidia shares will ‘end up looking cheap’ next year as stock nears record high“Nvidia’s stock looks expensive because the company almost always beats the earnings estimates and beats them handily,” the “Mad Money” host said. |
| DARPA awards nuclear spacecraft contracts to Lockheed Martin, Bezos’ Blue Origin and General AtomicsThe Pentagon’s advanced research division awarded a trio of companies with contracts to build and demonstrate a nuclear-based propulsion system on a spacecraft. |
| White House using new methods to reach vaccine-hesitant Americans: NASCAR, CMT and ‘Deadliest Catch’White House uses new methods to reach vaccine-hesitant Americans: NASCAR, country music TV and ‘Deadliest Catch.’ |
| How Alex Rodriguez and Marc Lore’s $1.5 billion purchase of the Timberwolves can rebuild the team, boost diversity in NBAFormer MLB star Alex Rodriguez and ex-Walmart e-commerce CEO Marc Lore haveagreed to purchase the NBA’s Minnesota Timberwolves for approximately $1.5 billion. |
| Credit Suisse Slashes Bonuses After $4.7 Billion Archegos DisasterCredit Suisse Slashes Bonuses After $4.7 Billion Archegos Disaster While all of the banks playing “pass the hot potato” with Archegos Capital’s now-dismantled equity book are undoubtedly still assessing the damage they incurred (or at least will report to shareholders), it looks like no one had it worse than Credit Suisse. The banking giant has now slashed its bonus pool by “hundreds of millions of dollars” according to FT, after the firm lost $4.7 billion in the Archegos implosion. Credit Suisse is Switzerland’s second biggest lender by assets and had Archegos as a client of its prime brokerage division. The staggering $4.7 billion loss accounts for about 18 months of net profits for the bank. As questions also continue to loom about the implosion of Greensill Capital, Credit Suisse’s compliance and risk management is under the microscope. The bank is expected to post a $960 million loss in Q1 of 2021 as a result of the chaos. Its “underlying pre-tax income for the quarter was expected to be just over $3.7bn, with about $600m achieved through reductions to bonus pool accruals and other one-off booked items,” FT wrote. |
| Portlanders Join Nationwide Riots After Cops Kill Minnesota Man; Hurl Bottles, Rocks, & FireworksPortlanders Join Nationwide Riots After Cops Kill Minnesota Man; Hurl Bottles, Rocks, & Fireworks Hundreds of protesters gathered in Portland on Monday night in opposition to the police killing of Daunte Wright, a 20-year-old who was shot and killed during a traffic stop on Sunday afternoon in Brooklyn Center, Minnesota. “A crowd of about 200 have gathered near the Kelly Penumbra building. Projectiles including bottles, rocks, and large fireworks have been thrown at police. Windows have been broken,” Portland Police tweeted.Â
Portland Police continued: “Multiple warnings have been provided to the crowd regarding force or munitions being used if the criminal behavior does not cease. Fires have been lit. Traffic is impacted in both directions on East Burnside Street near 47 Ave.” In response to the social unrest, Portland Police “declared an unlawful assembly due to the criminal acts occurring.” < … |
| Futures Slide After US Suspends J&J VaccineFutures Slide After US Suspends J&J Vaccine After trading flat for much of the overnight session in anticipation of today’s key event, the CPI report (due out at 830am ET), US equity futures and European markets tumbled at precisely 7am after a report that the US will pause Johnson & Johnson vaccines amid health concerns, potentially dealing a blow to efforts to reopen the world’s largest economy. Futures on the S&P 500 fell and reopening sensitive Russell 2000 contracts lost almost 1% after the New York Times reported and FDA confirmed that the US would will call for an immediate pause in use of Johnson & Johnson’s single-dose coronavirus vaccine  after six U.S. recipients developed a rare disorder involving blood clots. All the six recipients were women between the ages of 18 and 48. One woman died and a second woman in Nebraska has been hospitalized in critical condition, the NYT reported.
œThis is a setback and it’s going to make people nervous, Â Sebastien Page, amulti-asset strategist at T. Rowe Price, said in an interview on Bloomberg Television. œBut the … |
| Buckle Up For Inflation With Bond Volatility Thrown InBuckle Up For Inflation With Bond Volatility Thrown In By Laura Cooper, Bloomberg Markets live commentator and analyst Brace for base effects with a heady acceleration in U.S. inflation ahead. Bonds are getting a head start with the U.S. 10-year yield approaching 1.70%, helping to boost the greenback. Of course, it’s impossible to interpret the figures as hints of overheating, but look for U.S. stocks to be spooked by an upside surprise after markets pared back tightening bets this month. Inflation risks are skewed to the upside with a bottom-up approach suggesting more than base effects at work. A jump in gas prices alongside rising food costs underpin headline CPI consensus of 0.5% m/m in March, widening the gap between the core gauge. While the Fed focuses on the PCE deflator, that tends to run below CPI, an upside surprise after recent quiescent price action can send S&P 500 futures lower. And spark bond market volatility, with the 30-year auction another event risk ahead. At least there’s some clarity on outcome-based forward guidance with the Fed’s James Bullard signaling the U.S. reaching 75% immunization as a necessary condition for taper talk. That implies late summer at the current rate and compares to roughly five months for the U.K. with the EU about a year away. But the Bank of England isn’t in a hurry to ease bond buying, even as signs of unleashed pent-up demand unfold. At least that’s the case looking at lines outside U.K. shops, and backed by high-frequency gauges. But much of the recovery appears baked in with rates pricing largely unchanged and cable struggling for upside this week. The U.K. will lock in long-term borrowing costs … |
| UK exports to EU rebound partially after January’s slumpDespite the improvement, exports still remain below 2020 levels, the UK statistics body says. |
| Liberty Steel: Kwarteng defends rejecting request for £170m bailoutThe business secretary says the government had to ensure that any money provided would stay in the UK. |
| Defence giant Babcock International to cut 1,000 jobsThe government contractor also expects a “significant” £1.7bn write-off as part of a company review. |
| $12 bn gone! Covid selloff puts big dent to Adani wealthThe selloff in the domestic equity market over the past six days has caused Adani’s wealth to plummet 17 percent or by Rs 92,000 crore ($12 billion), from its peak. |
| Infosys buyback decision on Wednesday: What to expect?Infosys had a net worth of $9.6 billion and net cash of $4.6 billion as of December quarter and therefore can buy back a maximum of $2.4 billion, based on 25 percent of its net worth, without shareholder’s approval. |
| Retail investors using the selloff to buy stocks: Zerodha co-founder“Nobody knows the scope of what will happen with Covid in the coming days, but the amount of worry in the market has significantly gone up,” says Zerodha co-founder Nikhil Kamath. |
| Bond Report: U.S. Treasury yields inch higher before March inflation dataU.S. Treasury yields were tilted higher in early Tuesday trade before the widely awaited consumer price index data for March that could add fuel to bond investors’ fears of a surge in inflation. |
| Outside the Box: Space infrastructure is the next investment frontier and SPACs are a launchpadThe global space industry is expected to generate revenue of $1.4 trillion or more by 2030, up from $350 billion in 2020. |
| Mark Hulbert: Why Generation ‘I’ ” YOLO investors who’ve never seen a bear market ” should worry us allFirst-time stock investors are making money now but market veterans know how this story ends. |
Earnings Summary for Today
leading Stock Positions
Current Commodity Prices
Commodities are powered by Investing.com
Current Currency Crosses
The Forex Quotes are powered by Investing.com.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
