Written by Gary
Bank of America Issues a code red for stocks (SPY +0.9%). Oil rig count rises to highest level and Job growth slows in US as virus cases surge.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Oil Rallies On OPEC+ AgreementOil prices rallied on Friday morning as OPEC+ finally came to a compromise, with the group unanimously agreeing to add 500,000bpd to January quotas.For Global Energy Alert members there are now two new free reports available in your dashboard. The first of these reports is on how to interpret stock charts and the second outlines the three biggest mistakes made by traders today. Make sure you become a member to read these reports and many more.Friday, December 4th, 2020Oil prices rose after OPEC+ agreed to partial increases in production beginning |
| Oil Rig Count Rises To Highest Level Since Mid-MayBaker Hughes reported on Friday that the number of oil rigs in the United States rose by 5 to 246the highest number of rigs since mid-May. The total number of active oil and gas rigs increased for the week by 3, with oil rigs increasing by 5 and gas rigs falling by 2. Miscellaneous rigs stayed the same at 2. Total oil and gas rigs in the United States are now down by 476 compared to this time last year. The EIAs estimate for oil production in the United States is now at 11.1 million barrels of oil per day as of the most recent reporting |
| Technical Analysis: Oil Has Room To RunU.S. West Texas Intermediate crude oil futures are trading higher on Friday as major producers agreed on a compromise to continue some cuts to production to cope with coronavirus-hit demand even though these fell short of expectations. The market surged early in the session but the rally ran out of steam following a test of a key technical level. The price action suggests that traders are reluctant to chase the market higher at current price levels. Gains are likely being capped by mixed to bearish feelings over the OPEC+ compromise, but underpinned |
| The End Of Growth For U.S. Shale1. Exxons sharp CAPEX cuts- ExxonMobil (NYSE: XOM) announced plans to cut its CAPEX down to $20-$25 billion annually, lopping off $10 billion from what the company said in March at the onset of the pandemic. – In terms of spending growth, the new outlook amounts to a contraction next year and a very modest increase in spending thereafter. – The spending plan amounts to a new strategy for the oil major, which had been stubbornly sticking to aggressive growth plans despite strategy overhauls taking place at some of its top competitors. – Spending |
| An Energy Trade War Is BrewingPolitics, Geopolitics & Conflict – Trump is adding Chinas national offshore oil and gas producer, CNOOC, to the U.S. defense blacklist, launching a salvo that looks a lot like a brewing energy war at a time when American investors are – for the first time – looking to add more China shares to their portfolio for post-COVID recovery. Its a mess for the incoming administration to deal with, but for now, stick to the non-energy China stocks to boost your portfolio. – Turkey has withdrawn its oil and gas exploration vessel from the |
| Its Time To Take Profits On Oil StocksUsually, when a market move makes no sense to you, it is you that is wrong. As my old dealing room boss loved to say, or rather shout, the market cannot be wrong. It is simply a reflection of the last place two people were prepared to trade, so it is always right. Still, there are times when I look at a move and just scratch my head. Now is one of those times.Over the last month or so, WTI futures (CL) have shot up around forty percent. Given that U.S. supply has been falling as the economic recovery from the shutdown continued and that that is |
| CDC advisor says kids could get Covid vaccine in the second half of 2021Children and young teens could get a Covid-19 vaccine in the second half of next year, an advisor for the Centers for Disease Control and Prevention said. |
| McDonald’s is passing along more fees to franchisees, reigniting tensionsMcDonald’s plans to pass along more fees to franchisees next year, risking the wrath of its U.S. operators. |
| CDC quietly adjusted Covid death data, shows higher relative toll on Black, Hispanic peopleThe CDC’s previous infographic, which downplayed the disproportionate burden on communities of color, was widely shared. |
| Restaurant industry loses jobs for the first time since April as new restrictions hit employmentThe restaurant industry lost jobs for the first time since April as new restrictions to fight the coronavirus pandemic weighed on sales. |
| WHO warns Covid reinfections may occur as data suggests antibodies waneWorld Health Organization officials on Friday warned that recent data suggests people who were once infected with the coronavirus could be infected again. |
| CDC’s new Covid quarantine guidance criticized for addressing the wrong problemEllie Murray, an epidemiologist at Boston University, said the new guidance feels something like a compromise by the CDC, or a negotiating tactic. |
| Heated on-air CNBC exchange between Sorkin and Santelli mirrors national debate over Covid lockdowns“Squawk Box” co-host Andrew Ross Sorkin and CNBC bond maven Rick Santelli engaged in a heated debate Friday over coronavirus restrictions. |
| Boeing further trims 787 output in pandemic, expects slower deliveries due to inspectionsBoeing is cutting its production target for its 787 Dreamliners to five a month as the pandemic keeps a lid on demand and it warns about slower deliveries. |
| 15 days of 102 fever, a cracked tooth from chattering ” ex-NYSE chief shares his Covid ordeal“I felt like somebody was taking a sledgehammer to my back,” Tom Farley, now a dealmaker, told CNBC on Friday. |
| Cheesecake Factory settles with SEC over misleading Covid risk disclosures, a first for a public companyThe Securities and Exchange Commission has charged and settled with the Cheesecake Factory for misleading investors with its Covid-19 disclosures. |
| Petco has filed to go public as consumers adopt more pets during the pandemicPetco Health and Wellness has filed an S-1 to go public again. |
| Dr. Gottlieb: ‘I’m hopeful’ for enough Covid vaccine supply next year after Pfizer rollout cutThe former FDA chief explains why he is “hopeful” there will be adequate vaccine supply in 2021 and why it is important that patients take both doses. |
| Watch live: WHO holds a press briefing on Covid as countries prepare to distribute vaccineThe World Health Organization is holding a briefing Friday on the pandemic as countries prepare their distribution networks for a forthcoming Covid-19 vaccine. |
| Stocks Soar To Record Highs As Dollar Dumps After Dismal DataStocks Soar To Record Highs As Dollar Dumps After Dismal Data Tyler Durden Fri, 12/04/2020 – 16:01 Before we start, let’s get one thing straight… the US economy is going south fast as the labor market nears its weakest of the year, retail is tumbling, and even ‘soft’ survey hope is rolling over… those are the ‘sciency facts’… |
| CDC Urges Americans To Wear Masks Indoors; Bay Area Counties Plan COVID Lockdowns; New NY Cases Top 11K: Live UpdatesCDC Urges Americans To Wear Masks Indoors; Bay Area Counties Plan COVID Lockdowns; New NY Cases Top 11K: Live Updates Tyler Durden Fri, 12/04/2020 – 15:57 Summary: NY reports 11k new cases in a day Bay Area counties planning more restrictions CDC warns Americans to wear masks indoors Bahrain second country to approve COVID vax Moderna CEO says 500MM doses likely next year More than 10 states broke COVID records yesterday Pennsylvania reports more than 11K new cases as outbreak surges CCP official claims 600MM vaccine doses are ready to go New York hospitalizations top 4K Texas reports 4th-straight day of 10K+ new cases Delaware issues stay home advisory Colo. warns of more than 4.4K COVID deaths this month Norway says residents in nursing homes being given vaccine priority * * * Update (1545ET): NY Gov Cuomo just reported the state’s latest numbers, and they don’t look great. NY reported 11K new cases over the last 24 hours, far and away the highest daily tally since the spring.
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| Bank of America Issues A “Code Red” For StocksBank of America Issues A “Code Red” For Stocks Tyler Durden Fri, 12/04/2020 – 15:40 We already discussed how current market euphoria has surpassed dot com levels, but what’s going now is absolutely staggering… and it’s only getting crazier with each passing day and new all time high. Consider that in just the past 4 weeks there has been a record $115BN inflows into stocks, a record $25BN into EM stocks, a record $9BN outflows from gold… |
| Elon Musk Is Reportedly Moving To TexasElon Musk Is Reportedly Moving To Texas Tyler Durden Fri, 12/04/2020 – 15:39 Back in May, amid reports that he was considering the Lone Star State for the location of his next Gigafactory, we asked whether or not Tesla CEO Elon Musk might move to Texas. That answer appears to be yes. |
| Post-Brexit trade talks paused amid ‘significant divergences’Boris Johnson and European Commission chief Ursula Von Der Leyen will seek to break deadlock on Saturday. |
| Lidl joins shops in repaying Covid rates reliefRetailers have so far committed to handing back £1.9bn after some faced criticism from MPs. |
| Job growth slows in US as virus cases surgeThe US economy added just 245,000 jobs in November – far less than expected. |
| What is driving the momentum in IPO market?œThe current momentum in the IPO market is being driven by ample liquidity from multiple sources. In addition to FII flows, domestic investors are flush with liquidity from gains in frontline stocks , said Nalin Kumar, head investment banking, IDBI Capital. |
| Why Q2 GDP print should not make govt & RBI complacentA strong revival of consumption demand is important for the Indian economy as it has ripple effect on other sectors. Consumption is often viewed as the driving force of India’s growth story. |
| Space for RBI rate cut vanishes; but ample liquidity in the systemMPC’s concern that price pressures are spreading, and the stated need for monitoring threats to price stability to anchor macroeconomic and financial stability, suggest that an extended pause is likely, despite its desire to nurture the nascent economic revival. |
| Weekend Sip: A $2,000 ‘Baccarat’ bourbon, a boozy ice cream cocktail kit, and 11 other gift suggestions for the drinkers in your lifeWeekend Sip’s 12 bottles of Christmas also includes a ‘heavenly’ Japanese whisky. |
| : This 25-year-old is now a billionaire, after his self-driving car company Luminar went publicAustin Russell founded Luminar Technologies in 2012 and joins a short list of people who have amassed a billion-dollar fortune before the age of 30 |
| : France threatens to veto a U.K.-EU Brexit deal it wouldn’t like ” here’s why it’s unlikely to come to thisEuropean Union and U.K. negotiators are still hard at work, with just a few days left to strike a deal. |
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