Written by Gary
US consumer spending climbs 1.4% to cap off strong third quarter (SPY -1.1%). Oil hits 5-month lows as COVID-19 cases surge.
Here is the current market situation from CNN Money | |
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What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Oil Hits 5-Month Lows As COVID Cases SurgeCrude oil collapsed earlier this week after France and Germany announced new lockdowns in response to surging Covid-19 cases, and now it is set for its worst month since late spring. Cases are also on a fast rise in the United States as well, threatening to overwhelm some states healthcare systems. This, combined with the fact that a new stimulus bill is highly unlikely to be agreed before next weeks election, pressured West Texas Intermediate to some $35 a barrel, the lowest since April when prices took a nosedive on the first round |
| U.S. Sells Seized Iranian OilThe United States has sold crude oil seized from four Iranian tankers earlier this year for some $40 million the AFP reports, citing a U.S. government official. “We estimate that in excess of $40 million will be recouped by the United States related to the sale of petroleum from those four vessels,” Michael Sherwin, acting U.S. attorney for the District of Columbia said. Sherwin added that “a great portion” of the money will be donated to a fund for the victims of “state-sponsored terrorism”. In the middle of August, the U.S. Administration said |
| Analysts: Oil Prices Are Going Nowhere In The Short TermOil prices will continue to trade in a narrow range for the rest of the year, and the average Brent price next year will not exceed $50 a barrel, the monthly Reuters poll of analysts showed on Friday. According to 41 analysts and economists surveyed by Reuters, the second wave of coronavirus cases in major economies will further delay the economic and oil demand recovery, while growing supply out of Libya will also weigh on prices. The only factors that could take oil out of range-bound trade for the rest of the year are the U.S. presidential election |
| Oil Investments Are Drying Up As Crude Demand FaltersThirty-five percent: this is the size of the spending cuts oil and gas companies are likely to have made this year in response to the effects that the coronavirus pandemic is having on demand, according to the International Energy Agency. And this is just the spending slump in upstream oil and gas. This is just part of a wider trend of investment cuts in the energy industry, according to the IEA, which earlier this month published an update of its World Energy Investment report, first released in late spring. At the time, some thought we were seeing |
| Are Stock Markets About To Crash Again?Late last year, a cross-section of pundits predicted that 2020 would go down as one of the most volatile years in the history of financial markets mainly due to escalating trade wars. Turns out they were half-right. The current year really has been one of the most volatile on record not due to the feared trade tensions but a much deadlier foe: Covid-19. The global pandemic was directly responsible for the epic market crash back in March–the fastest in history–and it could be about to do the markets in, again. After a brief rebound on optimism |
| Could Fracking Help Save Colombias Oil Dependent Economy?For almost a decade the Andean country of Colombia has been battling to significantly boost its low proven petroleum reserves and lengthen the production life of its economically vital oil industry. After a dearth of major oil discoveries, with the last mega oil discovery being the Cao Limon oil field in 1983 by Occidental Petroleum, the central government and the Colombian Association of Petroleum (ACP-Spanish acronym) believed that fracking could provide a viable solution. There have been numerous attempts by Bogota and the Colombian |
| Restaurants see a new wave of coronavirus restrictions as U.S. cases hit record highRestaurants are facing a new wave of restrictions, posing yet another obstacle in their attempts to stay afloat and recover from the coronavirus pandemic. |
| Donald Trump Jr. dismisses Covid deaths as ‘almost nothing’ even as U.S. averages 800 deaths per day“We don’t have any, quote unquote, miracle drugs,” Dr. Bill Schaffner, an epidemiologist at Vanderbilt University, said. |
| How Planet Fitness could survive Covid-19 while other gyms go bankruptGyms were forced to shut down in March 2020 to try to curb the spread of Covid-19, crippling the fitness industry, which is a $32 billion market in the U.S. |
| McRib returns to McDonald’s nationwide for the first time since 2012Starting Dec. 2, McDonald’s McRib is returning to menus nationwide for the first time since 2012. |
| ‘Remain vigilant’ ” health advocates say don’t squander months of Covid sacrifice“People should not let their guard down now,” former FDA chief Scott Gottlieb told CNBC. |
| New York City’s 45 movie theaters make up 40% of the metro box office ” and only one of them is openNew York City has long been an important market for movies financially and symbolically. Currently all but one of its 45 theaters are closed. |
| The pandemic has exposed gaping problems with the U.S. health care systemThe coronavirus pandemic has fundamentally reshaped the U.S. health care system, and exposed some of its most gaping problems. |
| Under Armour’s strong footwear sales help drive earnings beatCEO Patrik Frisk cited higher demand for the athletic apparel maker’s products during the coronavirus pandemic, especially in North America. |
| How Main Street in battleground states can swing the presidential electionSmall business represents a large voting block in swing states that could determine the 2020 U.S. presidential election. |
| Starbucks earnings top estimates as sales rebound quicker than expected in U.S., ChinaStarbucks’ global same-store sales fell 9% in its fiscal fourth quarter. |
| Delta and pilot union reach preliminary deal to avoid furloughs until 2022Delta’s pilot union reaches preliminary agreement to avoid close to 2,000 furloughs until 2022. |
| 5 things to know before the stock market opens FridayDow futures, down more than 400 points earlier Friday, pointed to an over 150 point decline at Wall Street’s open. |
| Chevron revenue plummets more than 30% in the third quarter as Covid slams demandChevron’s aggressive cost-cutting measures helped boost results as the pandemic hammers the oil giant. |
| The VIX Is Getting Close To A Critical LevelThe VIX Is Getting Close To A Critical Level Tyler Durden Fri, 10/30/2020 – 12:05 Submitted by Nick Colas of DataTrek Research Three thoughts on today’s US and global equity market selloff and recent volatility more generally: #1: Let’s start with where the CBOE VIX Index is trading and what this œFear Gauge/Price of Portfolio Hedging measure says about near term market sentiment: Today is only the 203rd time that the CBOE VIX Index has closed over 40 (at 40.3) since January 1990, when the modern version of the index launched. That is just 2.6 percent of all trading days from that starting point. Based on daily closes back to 1990, a 44-handle VIX is the statistically significant level that indicates genuinely high market uncertainty. The average VIX close over the last 30 years is 19.44 and the standard deviation is 8.12, so three standard deviations away from the mean is therefore 43.8, which we round to 44. Going back to 1990, there have been 124 VIX closes above 43.8, or 1.6% of the distribution. That means the VIX is more fat-tailed than a normal curve, an observation well-known to anyone who has read Taleb’s Black Swan book. Now, let’s make the entirely fair assumption that we’re not done w … |
| Senate Committee Verifies Bobulinski Evidence On Bidens (So Why Is MSM Covering It Up?)Senate Committee Verifies Bobulinski Evidence On Bidens (So Why Is MSM Covering It Up?) Tyler Durden Fri, 10/30/2020 – 11:50 Authored by Sara Carter via SaraACarter.com, The Senate Homeland Security and Governmental Affairs Committee confirmed Wednesday the information exposed by former Hunter Biden business associate Tony Bobulinski that connects the former Vice President to companies and ventures in China. But you wouldn’t know it by following the main stream press. |
| Michael Moore: “Don’t Believe These Polls”Michael Moore: “Don’t Believe These Polls” Tyler Durden Fri, 10/30/2020 – 11:30 Filmmaker and political pundit Michael Moore – who correctly called Trump’s win in 2016 (and accidentally made a bitchin’ Trump ad) – is warning Democrats not to believe polls suggesting Biden has a giant lead. In fact, it may be within the margin of error. “I need to remind people that the poll back in July said at that point that Biden was ahead in Michigan by 16 points. Trump has cut that in half. Trump has tightened virtually every one of these swing states…” Moore told The Hill – noting what we’ve been highlighting for months – namely that many Trump supporters are unwilling to tell pollsters their true political affiliation. |
| New Jersey Sees COVID-19 Cases, Hospitalizations Highest Since May, Regeneron Halts Antibody Trial Enrollment: Live UpdatesNew Jersey Sees COVID-19 Cases, Hospitalizations Highest Since May, Regeneron Halts Antibody Trial Enrollment: Live Updates Tyler Durden Fri, 10/30/2020 – 11:23 Summary: NJ cases, hospitalizations highest since May Regeneron follows Eli Lilly, halts enrollment of seriously ill patients Iceland tightens restrictions Sweden introduces new economic support Czech Republic won’t shut down manufacturing as country braces for new restrictions Global cases top 45 million Taiwan celebrates record COVID-19-free streak, best growth in developed world US reports 89k new cases UK accelerates vaccine approval Germany reports record jump Japan tops 100k HK customs agents seize counterfeit masks Indonesia reports most cases in 2 months * * * Update (1100ET): It’s 1100 on the East Coast of the US, and markets are dominating the conversation again on Friday as new GDP data offers more insight into how badly Europe’s economy has been rocked by the virus. The Czech Republic isn’t planning to shut down manufacturing production or factories when it imposes new COVID-19 restrictions, according to Prime Minister Andrej Babis. Infection rates have slowed slightly in the Central European country, which … |
| House prices climb to record high, says NationwideHouse prices rise at their fastest rate for five years as buyers race to avoid paying stamp duty. |
| Marriott Hotels fined £18.4m for data breach that hit millionsUp to 339 million people may have been hit in a cyber-attack on a chain later bought by Marriott. |
| Eurozone bounces back to economic growthThe region saw 12.7% growth from July to September but GDP is still smaller than before the pandemic. |
| Game on! Jhunjhunwala all set to take Chhota Bheem to capital marketThe proposed public offer is likely to hit the market between January and February 2021 amid growing investor exuberance on technology companies, two people with direct knowledge of the matter told ET. |
| Brokers’ favourite, this midcap can be a solid re-rating candidateThe company has delivered profit growth of 48% CAGR over the last 3 years with a return on equity of 20% during this period. |
| Laurus Labs with 350% stock gain seeks to boost capacityThe pharmaceutical sector is the top performer in India’s $2.1 trillion equity market this year after the coronavirus pandemic turned global investors’ spotlight on health-care companies. |
| Weekend Sip: For Halloween, how about a vodka-tequila hybrid in a skull-shaped bottle?Onyx is the latest release from comedy legend Dan Aykroyd’s Crystal Head brand. |
| Outside the Box: Big Ag could lose two powerful D.C. politicians ” here’s what that (and a Biden win) could mean for farm subsidies |
| Economic Report: U.S. consumer spending climbs 1.4% in September to cap off strong third quarterAmericans spent more in September on goods and services such as new cars, clothing and recreation, a fifth straight increase that underpinned an historic rebound in the economy during the third quarter. Consumer spending rose 1.4% last month. |
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