Written by Gary
Mortgage rates set yet another record low, but applications fall (SPY +0.3%). Stocks making the biggest moves: Bank of America, UnitedHealth, Goldman Sachs.
Here is the current market situation from CNN Money | |
 | European markets are lower today with shares in France off the most. The CAC 40 is down 0.64% while London’s FTSE 100 is off 0.56% and Germany’s DAX is lower by 0.04%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | Why Saudi Arabia May Be Forced To Start Another Oil Price WarThe ongoing weakness of global oil markets seems to be stoking tensions within OPEC+, and a split within its leadership is now imminent. From the start of this years Moscow-Riyadh brokered OPEC+ production cut deal, internal differences have been kept at bay by a global pandemic and high crude oil storage volume. Market optimism now seems to be growing, from bullish reports about next years crude oil prices and even todays IEA World Energy 2020 Report. But the reality of oil markets is far bleaker. The threat of European lockdowns |
| Is U.S. Shale Finally Bouncing Back?As the oil price dropped through the first and second quarters of this year, oil companies closed in wells and laid off drilling and fracking crews. Activity bottomed in late May and has mounted a steady recovery in the months since. Rig count increases have been moderate, rising from low of 251 in May to 269 as of the 5th of October. What has been more spectacular is the increase in the deployment of frac crews as operators have allocated capex to bring Drilled by Uncompleted, (DUCs) out of inventory and into production. The graph above shows |
| U.S. Shale Production Set To Drop Next MonthOil production from the seven largest shale formations in the United States is set to decline 121,000 barrels next month, the Energy Information Administration (EIA) said on Tuesday in its latest Drilling Productivity Report. The biggest production decrease next month is expected to come from the Eagle Ford, which the EIA expects will fall from 1.048 million bpd to 1.014 million bpd. The second-largest drop is expected to take place in the Niobrara. All in all, the EIA expects oil production will drop in November to 7.692 million bpd, from 7.813 |
| OPEC Report Reflects Negative Sentiment In Oil MarketsOPEC has again revised down world oil demand in 2021, according to the cartels latest Monthly Oil Market Report, and combined with OPECs consistent production quota laggards and rising U.S. production, the market is none too satisfied. OPEC cited lower economic growth in Organisation for Economic Co-operation and Development (OECD) member countries and non-OECD countries as the primary basis for lowering total world oil demand by 0.08 million bpd in 2021, to reach 96.84 million bpd. This compares to OPECs |
| Saudi Aramco Discusses $10 Billion Pipeline SaleSaudi Arabia’s oil giant Aramco is in early talks to potentially structure a deal worth more than US$10 billion to sell a part of its pipeline business to asset managers, including the world’s biggest, BlackRock, sources with knowledge of the talks told Reuters on Tuesday. Through a potential sale of a stake in its pipeline infrastructure, Saudi Aramco could raise some much-needed cash. At the same time, its profits tumble with the low oil prices, and debts soar with the acquisition of petrochemicals giant SABIC. Aramco is now trying to contain |
Amazon Prime Day Deals SuckOur product evaluation editor spent most of the morning looking at the various deals (???) Amazon Prime Day has to offer. Ninety-five to ninety-nine of the so-called values seem to be overstocked items at the same price they were two months ago. Very few actual bargains. Seriously, who wants a 32″ TV for their living room. The better models are on not sale – not even for 1% off. Oh yeah, you can but several types of Fire TV’s, but not the really good televisions. I did see an overpriced Samsung for only seven grand – if you can afford it. Many Echo’s, Amazon brand coffee, and dog food to feed grandmother, or try the Senior shakes by Amazon. Lots of phones, earbuds, and watches if that is what you are looking to buy. Kindles are a big item, but try to find the other competing brands! The ladies adore Le Creuset products. Unfortunately, only plastic junk is for sale. Two items I purchased two months ago are at the same price I paid for them. WOW, what a deal! After going through several categories and many pages, I can say what a waste of my time. Better go to Target or Walmart for sensible everyday pricing! That is my take of the day. | |
| Crucial Oil Infrastructure At Risk In New Caucasus ConflictNagorno-Karabakhs close proximity to key Azeri oil and gas infrastructure means that there will be more at stake if the regions conflict with Armenia escalates further and jeopardizes key export pipelines. A Rystad Energy analysis explains how potential disruptions could benefit Russian gas exports while weakening both Turkeys cheap gas imports and its role as a vital oil transport hub. The Baku-Tbilisi-Ceyhan (BTC) oil pipeline and the South Caucasus Pipeline (SCP) gas conduit both run through Azerbaijan, with some sections |
| Tesla will become a $2 trillion company, says billionaire and Tesla shareholder Ron BaronBaron’s eponymous investment firm, with $39.9 billion in assets under management, holds more than 7.3 million Tesla shares. |
| Walmart divides Black Friday deals into 3 separate events that kick off onlineThe big-box retailer is breaking up Black Friday into three different sales events and nudging bargain hunters to its website. |
| Panera Bread becomes first national chain to label entrees as climate friendlyPanera Bread entrees with a “Cool Food Meal” badge have a carbon footprint of less than 5.38 kg of carbon dioxide equivalent. |
| Preflight Covid-19 testing is on the rise ” the question is whether it worksThe airline industry hopes preflight testing will restore passenger confidence and reopen borders. Medical experts aren’t as convinced that one test is enough. |
| Ex-CDC director: Pauses to coronavirus drug trials give ‘reassurance’ that corners aren’t being cut“It’s kind of paradoxical, but actually it’s reassuring” to see coronavirus drug trials paused when safety concerns arise, former CDC Director Dr. Tom Frieden told CNBC. |
| Stocks making the biggest moves premarket: Bank of America, UnitedHealth, Goldman SachsThese are the stocks posting the largest moves before the bell. |
| The NFL hasn’t ruled out a post-season bubble, but mental health concerns make it unlikelyNFL Chief Medical Officer Dr. Allen Sills said the league doesn’t feel adding postseason bubbles is the safest course despite its recent Covid-19 outbreak. |
| Bill Gates slams U.S. on Covid: Most governments listen to their scientists, not attack them“Our response in most respects has not been very good. And we would have expected it to be good,” the billionaire philanthropist told CNBC. |
| Fauci: Trump’s rapid recovery from Covid-19, while welcome, ‘amplifies’ public misunderstanding of diseaseTrump’s quick bounce-back from his infection will likely underscore the mistaken belief some people have that the disease does not present significant health risks, STAT News reports. |
| Britain’s Boris Johnson pressured to introduce ‘circuit breaker’ lockdown to stop the coronavirusPressure is mounting on the U.K. government to impose a short, mini lockdown to act as what’s been called a “circuit breaker” on the coronavirus. |
| Bridgewater’s Ray Dalio pledges $50 million for new health justice initiativeRay Dalio’s $50 million give to NewYork-Presbyterian will create the |
| Disney’s seismic shift to streaming could be a threat to the stock, trader warnsDisney’s reorganization of its media and entertainment business to focus on streaming could dilute the quality of its content, warns Strategic Wealth Partners’ Mark Tepper ” but another trader disagrees. |
| Watch Live: Day 3 Of Judge Barrett’s Supreme Court Confirmation HearingsWatch Live: Day 3 Of Judge Barrett’s Supreme Court Confirmation Hearings Tyler Durden Wed, 10/14/2020 – 08:55 Having been accused of using LGBTQ-offensive language (“sexual preference”) by Sen. Hirono, slammed for havbing no “empathy” by Sen. Booker, misrepresented constantly by various senators (Blumenthal and Coons for example), Judge Amy Coney Barret faces a second day of questioning today in her confirmation process. Hopefully more of the utter f**king idiocy will not be there today…
A quick summary of Day One: On abortion and Roe v. Wade: Barrett repeatedly declined to give her views on high-profile, contentious issues like abortion rights and the constitutionality of the Affordable Care Act. She was repeatedly asked about her views of Ro … |
| Soaring Food Costs Send Producer Prices Higher In SeptemberSoaring Food Costs Send Producer Prices Higher In September Tyler Durden Wed, 10/14/2020 – 08:39 Following yesterday’s mixed bag for consumer prices (used cars soaring, rent/shelter slowing), producer prices were expected to shift back into very modest inflation YoY in September (and after 5 straight months of deflation), and across the board PPI printed hotter than expected. PPI Final Demand rose 0.4% MoM (double the +0.2% exp) sending PPI up 0.4% YoY (against expectations of a 0.2% rise) – the first inflationary print since March… |
| Futures, Global Markets Unsure What To Do As “Angst” RisesFutures, Global Markets Unsure What To Do As “Angst” Rises Tyler Durden Wed, 10/14/2020 – 08:38 US equity futures and world stocks were flat below recent record highs after several days of ramping higher driven by strength in tech, while Europe’s STOXX 600 slipped, reversing an earlier gain with markets in Frankfurt, London and Paris were down around 0.3% following moves to address rising coronavirus infection rates in Europe. |
| The Market’s Invisible Guardrails Are MissingThe Market’s Invisible Guardrails Are Missing Tyler Durden Wed, 10/14/2020 – 08:19 Authored by Michael Lebowitz and Jack Scott via RealInvestmentAdvice.com, If you have ever driven on California’s Pacific Coast Highway (PCH), you understand risk. For those that haven’t made the drive, you are missing out on a spectacular winding road perched between a steep cliff and the ocean well below. Staying safe on this harrowing road requires strong driving skills and a good set of brakes. Above and beyond what is in the driver’s control, the essential defense protecting drivers are the guard rails. If the PCH were fortified with 20-foot concrete walls, the risks of driving the road would be minimal but the incredible views lost. Conversely, if there were no guardrails, the risks increase substantially. A healthy compromise lies between these two extremes. Investors also have the ability to employ guardrails in the market. Sometimes they are large and protective. Other times they are negligible. Unfortunately, most investors have little appreciation for these invisible guardrails and which type of investors manage them. In reality, the efficacy of market guard rails’ should largely determine our ri … |
| EU to reject UK plea for Brexit electric car dealThe European Union is about to formally reject a UK plea for special allowances for exports of electric cars. |
| The gyms defying the Liverpool lockdownEmpoweredFit is one of dozens of gyms in Merseyside to remain open despite new rules ordering them to close. |
| HS2 costs rise again weeks after work beginsMinisters admit an extra £800m is needed due to more asbestos discoveries and complexities at London Euston. |
| Multi-Asset Funds have failed to live up to their promise. Here’s whyAllocating funds solely to a single asset class is not prudent as it is prone to inconsistent behaviour and may not deliver efficient risk-adjusted returns. |
| Why are millennials favouring gold ETFs, bonds over physical goldAccording to data from Association of Mutual Funds in India, the number of folios in gold ETFs increased by 111.19% last month compared with September 2019. |
| India Inc’s fund raising set to hit new record in FY21Local companies, including banks, could raise between $95-100 billion via primary bond sales this financial year, which could be marginally higher than a year before, estimates ICICI Bank. |
| September 2020 Producer Price Final Demand Year-over-Year Growth Now Slightly In ExpansionWritten by Steven Hansen The Producer Price Index (PPI) year-over-year inflation moved from -0.2 % to +0.4 %.
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| : The pause in Johnson & Johnson’s COVID-19 vaccine trial justifies why Big Pharma isn’t eager to rush to marketPharmaceutical companies will resist pressure from politicians such as U.S. President Donald Trump to speed up the vaccine trial and approval process. |
| NewsWatch: Here’s why it’s time to start shorting overextended markets, says one research firmTo analysts at Longview Economics, a London-based research firm, it’s looking like the rally from September lows was overextended, and the upside trend is “tired.” They say markets are overbought at an index, sector and single-stock level as traders have become “greedy.” |
| : Champagne and noodles ” travel-bereft passengers pay top dollar to dine out in grounded planesSingapore Airlines has launched pop-up restaurants on two of its Airbus A380 double-deckers. |
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