Written by Gary
U.S. stock futures are down sharply this morning as Consumer inflation posts biggest increase since 2008 SPY -0.3%). The biggest premarket movers: PepsiCo, JPMorgan, Boeing.
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. | |
Huge Dividend Cripples Worlds Largest Oil CompanyThe transformation of Saudi Arabias flagship asset, Aramco, from perpetual cash-generation machine into a debt-laden giant is set to pick up pace in the coming weeks with a series of schemes aimed at raising much-needed funding for the now-beleaguered oil and gas company. It has not been forgotten by many senior Saudis that the reason for this terrible transformation of the former jewel in the crown of Saudi Arabias business sector – and the cornerstone of any power that the Kingdom might have had on the world stage | |
The Ongoing Transformation Of Big OilWhen last year BP vowed to reduce its oil and gas output by 40 percent by 2030 as it shifts to renewable energy, it came as a shock to many, pushing the company’s share prices down sharply. Yet since then, pressure on Big Oil to stop doing what it does has only been growing. And Big Oil is responding. The Houston Chronicle’s Paul Takahashi in a recent article detailed supermajors positioning to effectively move away from their core business and into low-carbon energy. Takahashi noted several examples of Big Oil partnering with majors from other | |
High Oil Prices Threaten The Global Economic RecoverySince oil prices exceeded $70 per barrel earlier this year, analysts, economists, and central banks have been fretting about whether higher crude prices could disrupt the momentum in global economic recovery from the pandemic. Most experts argue that inflationary pressure is no doubt rising in developing economies, which are more sensitive than developed markets to rising oil prices. Fuel and food prices generally account for more consumer spending in emerging economies, so they hurt them more than mature markets when oil prices rise. Inflation | |
Investors Are Betting Big On The Future Of EV EfficiencyWith the global electrification drive in full swing, electric cars have constantly been improving in terms of mileage, performance, charging timeand costs. And, Wright’s law has so far proven to be right. According to Wright’s Law, aka the learning curve effect, lithium-ion (Li-ion) battery cell costs fall by 28% for every cumulative doubling of units produced. The battery pack is the most expensive part of an electric vehicle, and the sticker prices of EVs have been falling with declining battery costs. By 2023, the cost of Li-ion | |
U.S. Gasoline Demand In 2021 May Have Peaked AlreadyThe United States may have seen 2021 gasoline demand peak around the July 4 holiday, but increased airline traffic at domestic airports bodes well for the overall recovery in oil demand. Gasoline demand in the United States may have peaked around July 4 for this year, and it is unlikely that the country could exceed it, Patrick De Haan, head of petroleum analysis for GasBuddy, tweeted on Monday. As a result, I’m feeling more like a peak in gas prices may be sooner than late July/early Aug, De Haan added. U.S. gasoline | |
U.S. Oil Industry Sees More M&A Dealmaking As Prices RiseThe strong rally in commodity prices and the recovery in share prices in the second quarter of 2021 marked the return of many energy mergers and acquisitions in the U.S. upstream segment, with quarterly value sitting at its highest since the second quarter of 2019, energy data analytics company Enverus said on Monday. Following a timid start to 2021 in the first quarter, the pace of U.S. oil and gas deals surged in the second quarter. More than 40 deals were announced between April and June, for a combined total value of $33 billion, Enverus | |
Mastercard and Verizon announce new partnership for 5G contactless paymentsThe alliance, which aims to yield innovations by 2023, looks to further digitize and disrupt global consumer spending at retailers and other merchants. | |
Stocks making the biggest moves premarket: PepsiCo, JPMorgan, Boeing and othersThese are the stocks posting the largest moves before the bell. | |
5 things to know before the stock market opens TuesdayU.S. stock futures were flat Tuesday as earnings season kicked off one day after the Dow, S&P 500 and Nasdaq logged record closes. | |
Fauci says he would be ‘astounded’ if Pfizer, Moderna and J&J Covid vaccines don’t get full FDA approval“The data are about as good as it gets,” Dr. Anthony Fauci told CNBC, saying he expects Pfizer, Moderna and J&J’s vaccines to receive full FDA approval. | |
PepsiCo raises forecast after earnings crush estimates, fueled by returning restaurant demandPepsiCo reported that its quarterly revenue rose more than 20% from a year earlier as restaurant demand for its drinks returned, fueling an earnings beat. | |
Europe struggles to break free of Covid restrictions as delta variant surgesAs Europe struggles to contain a surge in Covid cases, a number of countries announced new restrictions this week. | |
Sam’s Club unveils pilot where shoppers scan purchases and have items shipped homeThe warehouse club has used digital approaches to stand out from competitors and act as a tech incubator for parent company Walmart. | |
Boeing cuts 787 Dreamliner production, delivery target after new flaw foundBoeing says it will deliver fewer than half of the Dreamliners in its inventory this year and temporarily cut production because a new flaw was found. | |
Dr. Kavita Patel says the need for a Covid booster shot seems inevitable with variants on the riseDr. Kavita Patel told CNBC on Monday that it seems inevitable that a Covid vaccine booster shot will be needed to target newer variants of the disease. | |
Dubai sets a world record: A 200-foot deep pool with a ‘sunken city’A new indoor diving pool, Deep Dive Dubai, lets divers explore a vertical submerged city that is the size of six Olympic-sized swimming pools. | |
Ford and GM replace ‘chairman’ title with gender-neutral ‘chair’The changes come after large swaths of corporate America have promised to be more inclusive in the wake of the #MeToo movement and George Floyd’s murder. | |
McDonald’s reportedly adds tuition, child care to sweetened benefits in a bid to attract new workersRestaurants were among the hardest-hit businesses during Covid shutdowns, letting go of many of their workers as sales stalled. | |
Most fully vaccinated people who get Covid delta infections are asymptomatic, WHO saysCovid hospitalizations are rising in some parts of the world, mostly where vaccination rates are low and the highly contagious delta variant is spreading. | |
Transitory? US Core Consumer Prices Are Rising At Fastest Pace In 30 YearsTransitory? US Core Consumer Prices Are Rising At Fastest Pace In 30 Years “Transitory” or not? That’s the question today as all eyes dives into the details behind the surge in Consumer Prices for signs that Powell’s plan is failing. BofA forecast headline and core CPI prints to come in hotter than expected (and they’ve nailed every print this year) and they were right again with a massive beat – Headline CPI rose 0.9% MoM (against expectations of +0.5%), the biggest MoM jump since June 2008. This sent YoY headline CPI soaring to +5.4%, Source: Bloomberg The index for used cars and trucks rose sharply for the third consecutive month, increasing 10.5 percent in June. This was the largest monthly increase ever reported for the used cars and trucks index, which was first published in January 1953Â | |
David Cameron Paid More Than $1 Million To Lobby For Greensill Before CollapseDavid Cameron Paid More Than $1 Million To Lobby For Greensill Before Collapse After months of reporting on Greensill Capital’s close ties to high-ranking Conservative politicians in the UK (who tried to hook the failing company up with government-backed COVID-relief loans that were supposed to go to small businesses) the FT revealed on Tuesday that former British PM David Cameron – who has seen his reputation sullied by the business paper’s reporting – was paid a salary of more than $1MM a year by the firm during his stint as a senior advisor. Cameron received generous compensation for what was supposed to be a ‘part-time’ advisory role. He was hired to work 25 days a year as an advisor to the company’s board and earned the equivalent of $40K per day. The FT described the lobbying scandal that has befallen Cameron as “one of the biggest” to afflict Westminster in a generation. And remember, this isn’t the first time that Cameron and his family’s wealth have been dragged into the spotlight. He endured plenty of e … | |
Live Updates: Elon Musk On Trial Over Solar City AcquisitionLive Updates: Elon Musk On Trial Over Solar City Acquisition We will be updating this post with notes and analysis as the trial progresses: Tuesday, 7/13/2021 0814 EST: Ari Levy, Senior Technology Editor for CNBC, told WGRZ yesterday about Solar City that “It was burning cash – it was a very capital intensive business. It wasn’t clear what their path to profitability was at the time. And so the view by many shareholders was that well this was actually a bailout of Solar City. It was Elon bailing out himself and his family members by pulling Solar City into Tesla.” 0800 EST: Testimony from Elon Musk is expected to continue today, followed by testimony by his brother, Kimbal Musk. Monday, 7/12/2021 1709 EST: StreetInsider wrapped up Musk’s most potentially conflicting testimony during his first day on the stand by stating: “Musk testified that he disagreed that there was ‘significant evidence’ SolarCity was struggling with cash management. However, an email from SolarCity’s CEO [to Musk] contradicts Musk’s testimony. The email, sent in early July of 2016, stated that the company was under a cash crunch during the time in question.” 1649 EST: Dana Hull reports that the day has wrapped up … | |
Goldman Reports Second Best Quarter In History As Advisory Surge Offsets Trading SlumpGoldman Reports Second Best Quarter In History As Advisory Surge Offsets Trading Slump Big Bank #2 results are out with Goldman reporting Q2 earnings and just like JPM an hour ago, the vampire squire reported solid, if not blowout bottom line earnings, however offset by a modest FICC trading revenue miss. Here are the Q2 details: Net revenue $15.39 billion, up 16% y/y, and once again not only smashing the median estimate of of $12.43 billion but coming above the highest estimate of $13.54 billion. EPS $15.02, up quite a few orders of magnitude from the 53 cents reported a year ago, once again beating both the median estimate of $10.15 and the highest Wall Street forecast of $12.02. Like JPM, Goldman also reported blow out Investment banking revenue of $3.45 billion, +26% y/y, estimate $2.92 billion and strong Equities sales & trading revenue $2.58 billion, down 12% y/y, but beating the estimate $2.53 billion. This however, was offset by a 45% drop in FICC sales and trading, which slid to $2.32BN, below the $2.49BN est … | |
Firms left to decide own rules on face masksTravel firms and others are setting out their own safety rules for when legal bindings lift. | |
Confusion for nightclubs over Covid pass policyThe government is being disingenuous by saying its guidance is voluntary, says an industry spokesman. | |
Banks must support households as furlough unwinds, says reportPeople and firms will need to rely on banks as government support ends, the Bank of England says. | |
As Zomato hogs limelight on D-Street, should you sell shares of Domino’s operator?Zomato is also being compared with Jubilant Foodworks, the operator of Domino’s Pizza chain in India. Jubilant is a profitable company with an established track record and has been able to fight off the rise of Zomato and Swiggy successfully. | |
Earnings disappointment a risk for market; Nifty may end at 15,500 by year end: JPMorganœValuations in India are looking extended, Mookim said in a video interview. œThere is an expectation or belief that reopening equals growth. We see many reasons that, even if we open up, we may not be in a very strong economic growth path. | |
Where are Bitcoin and Ether prices headed? Explained in 4 chartsBitcoin’s price action reveals œa menacing chart full of sound and fury, backed by nothing, said Rich Ross, technical strategist at Evercore ISI, in a recent note. | |
Economic Report: Consumer inflation posts biggest increase since 2008, CPI showsThe cost of living rose in June by the largest amount since 2008, leaving the increase in U.S. inflation over the past 12 months well over 5%. | |
Need to Know: Analysts expect earnings to be great. One bank says estimates are still too low.Strategists at UBS say expectations for 64% growth in earnings per share still aren’t high enough. | |
Bond Report: Treasury yields slip ahead of U.S. consumer price data for JuneU.S. yields for government debt edge lower Tuesday, ahead of inflation data for June which may reflect the impact of supply-chain bottlenecks and spiking demand in the economic recovery phase from COVID-19. |
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