Written by Gary
Ten-year Treasury yield flirts with 0.80% (SPY +0.4%). Netflix misses on subscriber additions and EPS – Covid-19 is accelerating across the globe.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Oil Poised To Rebound, But What About The Long Term?Oil bulls predict demand for oil will snap back quickly as global economic conditions improve. The International Energy Agency (IEA), on the other hand, expects a more muted recovery. Not surprisingly you can find any demand forecast needed for either the bull or bear case. And thats just for short term price and demand forecasts. Longer term demand forecasts have to reckon with negative factors like the rise of electric vehicles including cars, trucks and buses as well as and the nudges of environmental-social-governance (ESG) investing. |
| Iraq Sees Oil Prices Recovering In Q2 2021Oil prices are set to recover beginning in the second quarter next year, helping Iraqs oil industry and its plans to increase production capacity, Iraqi Oil Minister Ihsan Abdul Jabbar said at a virtual conference on Tuesday. Currently, the OPEC+ production cuts are delaying oil projects in Iraq, Jabbar said at the online CWC Iraq Petroleum conference. Next year could be more constructive for oil prices, according to the minister. I think quarter two, 2021 will be more attractive to every aspect of our business, Jabbar said, |
| Oil Demand Growth Wont Be Saved By Petrochemical BoomThe pandemic hit the chemical-driven profit margins of integrated oil companies and petrochemical manufacturers to the point that many firms slashed capital expenditures and deferred petrochemical projects for better times. The safe bet on petrochemicals suddenly became not so safe as demand from industries slumped with COVID-19, and the crash in oil prices added to the pressure on margins. In the United States, petrochemicals supply had exceeded demand even before the pandemic, and the coronavirus further skewed the balance into an oversupply. |
| Russian Lukoil Looks To Boost Its Oil Production In IraqRussias second-largest producer, Lukoil, is eager to increase its oil production in Iraq once the production cuts of the OPEC+ group end, Egor Zubarev, Managing Director of Lukoil Mid-East, told Bloomberg. Iraqs current crude oil production is capped at around 3.6 million barrels per day (bpd) under the OPEC+ pact, but the country needs to make additional deeper cuts by the end of the year to compensate for the lack of compliance with the agreement in previous months. Due to the OPEC+ deal, Iraq told the international oil majors |
| Oil Prices Arent Going Anywhere Until The ElectionChart of the Week- Natural gas accounted for 39% of U.S electricity generation in 2019, with nameplate capacity accounting for 43% of the total.- Every state except for Vermont and Hawaii has at least one natural gas-fired power plant.- Texas, Florida, and California each have more than 35 GW of gas-fired capacity. Market Movers- Halliburton (NYSE: HAL) said that U.S. shale drilling activity has bottomed out and could be staging a rebound.- Transocean |
| Nigeria Repays Dues To Oil MajorsThe Nigerian National Petroleum Corporation (NNPC) has repaid most of the arrears it owes to international oil companies for joint venture operating expenses, recently repaying US$3 billion to Exxon and Shell, Bloomberg reported on Tuesday, citing a statement from the Nigerian state oil firm. NNPC works in joint ventures with the major international oil producers in Nigeria, including ExxonMobil, Chevron, Shell, Total, and Eni. However, the stretched finances of the Nigerian company has led to arrears in its payments for contributions to the operating |
| Ford unveils new self-driving test vehicle for 2022 launchFord plans to launch its self-driving commercial business in 2022 with vehicles based on the Ford Escape Hybrid crossover, the company announced Tuesday. |
| Covid is accelerating across the globe as U.S. and Europe head into flu seasonThe pandemic is accelerating with U.S. cases climbing and at least 10 other countries and now reporting record highs in average daily new cases. |
| China’s billionaires see biggest gains ever, adding more than $1.5 trillion to their fortunesChina minted 257 billionaires over the past year, bringing the total to 878, according to the Hurun Rich List 2020, which tracks wealth in China. |
| Impossible Foods looks to hire more than 100 scientists in quest for dairy-free milk and meat alternativesImpossible Foods plans to hire more than 100 scientists to double the size of its research and development team and accelerate its product development. |
| JCPenney CEO says company expects to exit Chapter 11 ahead of holiday seasonThe bankruptcy process has added uncertainty as the retailer prepares for the holidays and tries to send a clear message about its future to vendors. |
| A majority of U.S. states are now on New York’s Covid travel restriction list, Cuomo saysPeople traveling to New York from 43 states and territories now meet the criteria to quarantine for two weeks upon arrival, Gov. Andrew Cuomo said Tuesday. |
| GM’s official run at Tesla starts with its electric Hummer debut Tuesday nightAs the Ford Bronco and Jeep Wrangler are set to battle over traditional off-road supremacy next year, General Motors has its sights set on a different competitor: Tesla. |
| AMC warns bankruptcy is on the table as cash runs lowAMC has agreed to sell as many as 15 million shares of its stock, but equity in the company could soon be worthless if the largest theater chain in the world files for bankruptcy. |
| Coronavirus likely to become as ‘endemic’ as the flu and a vaccine might not be able to stop it, top UK scientist saysA vaccine is not likely to eradicate the Covid virus, the U.K.’s chief scientific advisor said. |
| GM to invest more than $2 billion in U.S. manufacturing to increase electric vehicle productionGeneral Motors is investing about $2.2 billion in its U.S. manufacturing operations, largely to increase production of electric vehicles. |
| Netflix earnings: Watch these two levels carefully ahead of the much-anticipated report, trader saysWith Netflix’s third-quarter earnings report on deck, two traders break down their expectations for the streaming giant’s results. |
| From air fryers to spin bikes: Lowe’s bets on new categories this holiday seasonLowe’s has a broader mix of merchandise this holiday season, from air fryers to bedding and toys. |
| Procter & Gamble beats estimates as sales jump 9%, raises forecast amid strong demandProcter & Gamble now expects sales growth of 3% to 4% during fiscal 2021, up from its prior forecast of 1% to 3%. |
| Big-Tech, Banks, Bitcoin, & Bullion Jump As Dollar & Bonds DumpBig-Tech, Banks, Bitcoin, & Bullion Jump As Dollar & Bonds Dump Tyler Durden Tue, 10/20/2020 – 16:01 Great housing data and a bucketful of hope on stimulus talks sparked exuberance overnight but dueling headlines (Pelosi ‘optimistic’, McConnell not so much) from DC intraday pumped and dumped stocks all day. Nasdaq ended higher, breaking its 5-day losing streak… |
| Trump & Putin On Cusp Of Pre-Election Breakthrough Deal To Extend Nuke TreatyTrump & Putin On Cusp Of Pre-Election Breakthrough Deal To Extend Nuke Treaty Tyler Durden Tue, 10/20/2020 – 15:50 Looking for a last minute major foreign policy ‘win’ going into the November election, the Trump administration has claimed that it’s on the cusp of a significant arms control deal with Russia to extend the New START treaty. Specifically the two sides which have been in talks in recent months over extending New START, the landmark nuclear arms reduction treaty set to expire February 2021, appear to be making progress, at least according to the White House account. œWe are very, very close to a deal, an unnamed US official told The Wall Street Journal  on Tuesday. œNow that the Russians have agreed to a warhead freeze, I do not see why we cannot work out the remaining issues in the coming days. |
| “January Is Going To Be A Mess” – A Tsunami Of Evictions Expected Across US“January Is Going To Be A Mess” – A Tsunami Of Evictions Expected Across US Tyler Durden Tue, 10/20/2020 – 15:35 The Trump adminstration walked back federal proÂtecÂtions for renters in early October, even though rent moratoriums were still in effect, which allowed property owners and operators to begin the eviction process for millions of people as tens of billions of dollars in back rent is coming due. In early September, the CDC published new, temporary guidelines to halt evictions because of the virus pandemic. The public health agency said:Â
Before the eviction moratorium went into effect on September 4, there was a 72-hour lapse, allowing landlords to evict non-paying tenants. |
| San Diego School District Announces It Will Eliminate Grading Standards To “Combat Racism”San Diego School District Announces It Will Eliminate Grading Standards To “Combat Racism” Tyler Durden Tue, 10/20/2020 – 15:21 Authored by Paul Joseph Watson via Summit News, The San Diego Unified School District has announced that it will eliminate its previously used grading standards in order to œcombat racism . |
| Google hit by landmark competition lawsuit in US over searchThe US Justice Department accuses Google of disadvantaging its rivals in search and advertising. |
| Working lunch ‘loophole’ hope for pubs and restaurantsHospitality chiefs are seeking clarity over whether business lunches are exempt from Covid restrictions. |
| UK job losses ‘could be larger than forecast’The unemployment rate could rise above current predictions, a Bank of England policymaker warns. |
| Is it the right time to invest in stocks of banks, NBFCs?Speculative bullish positions in the derivatives segment are building up in both banking and NBFC stocks even as worries remain over the fate of interest payments and recoveries of advances. |
| Brokerages upgrade earnings estimates and price targets of these stocksUS headquartered Jefferies said in a note last week that it expects capacity utilisation of cement companies to improve to 65% in FY23 from an expected 60% in FY21 thanks to a swifter recovery in demand. |
| ETMarkets Investors’ Guide: Why Indians don’t care about retirementTune in as we discuss how serious the world’s largest young adult population is about its retirement plans! |
| August 2020 Trucking Improves Month-over-Month
Headline data for the American Trucking Association (ATA) and the CASS Freight Index show that truck volumes show significant growth month-over-month. |
| Outside the Box: Wanted: Stock investors with time and money to support profitable, well-run companiesBusinesses with long-term focus seek like-minded shareholders. |
| Bond Report: 10-year Treasury yield flirts with 0.80% as Pelosi suggests there is still time for pre-election fiscal stimulus dealU.S. Treasury yields rise Tuesday as investors contemplated the prospect of another fiscal stimulus agreement in Washington |
| Earnings Outlook: AT&T stock heads for worst losing streak since 2010 amid fears of iPhone subsidies’ effects on earningsShares of AT&T Inc. were on track to extend a slide Tuesday that would mark their longest losing streak in more than a decade. |
Written by Steven HansenSummary of Economic Releases this Week
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:
