Written by Gary
SP 500, Nasdaq close at record highs as investors eye stimulus progress (SPY +0.3%). The three major indices shook off earlier losses and rose in today’s session.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Why Is Denmark Ditching Natural Gas?Denmarks announcement that it would stop offering exploration licenses came down on the European oil and gas sector like a bolt from the blue. Not that it would be a completely unexpected move the offshore production of Danish gas has found itself bogged down in having to modernize without the required political backing for it rather it is a move that puts a lot of pressure for other producing nations that might be confronted with popular pressure to follow Copenhagens path. The Danish climate and energy minister Dan |
| Major Oil Pipeline Operators Plan Higher DividendsThe major North American pipeline operators Kinder Morgan and Enbridge issued upbeat updates to the market on Tuesday, planning higher dividends and expecting more profits next year, after the challenges the oil industry has faced this year. Enbridge raised on Tuesday its quarterly dividend by 3 percent to US$0.65 (C$0.835), effective March 1, 2021. This is the twenty-sixth consecutive year in which the oil and gas pipeline operator has increased its common share dividend. “For the 26th consecutive year, we’re pleased to be |
| Oil Market Hopeful As Vaccinations BeginGasoline demand hit a 20 year low over the Thanksgiving holiday, down 8.4% from the week before and the decline is showing no sign of shoppingChart of the Week- – The volume of natural gas vented or flared in the U.S. in 2019 was 1.48 billion cubic feet per day (Bcf/d), a record high. That amounted to 1.3% of total gross gas withdrawals. – North Dakota and Texas accounted for 85% of the total gas vented or flared.- The environmental impact is causing |
| OPEC Members Are Being Forced To Compensate For Missed TargetsAngola is set to cut 261,000 barrels per day (bpd) from its reference 2018 oil production in January as part of the OPEC+ pact, setting its production quota slightly above the current ceiling, the Angola Press Agency ANGOP reports. Angolas current oil production quota is set at 1.249 million bpd, as per the OPEC+ pact agreed in April. For May and June, when the deepest OPEC+ cuts were in force, Angola had to pump no more than 1.18 million bpd. The cut of 261,000 bpd from the reference production of 1.528 million bpd gives Angola a ceiling |
| Tesla Cashes In On Stock Price Explosion With Another $5B Share SaleTesla (NASDAQ: TSLA) plans to raise up to $5 billion in its third share sale this year as the EV maker looks to capitalize on the surge in its stock over the past year. Tesla may offer and sell from time to time common stock having an aggregate offering price of up to $5 billion, the company said on Tuesday, when its market capitalization was exceeding $608 billion. After news of the third share offering this year broke, Tesla’s shares dropped by 2 percent in pre-market trade and were trading at $641 each. The share sale, for which the EV maker |
| Finding A Way Around The World’s Largest Oil ChokepointOil is sometimes referred to as black gold. The discovery and export of fossil fuels have led to tremendous wealth creation for certain countries. In this sense, no region in the world is more blessed than the Middle East. Especially the countries surrounding the Persian Gulf are rich in oil and gas deposits. Unfortunately, political instability is almost a synonym for the Middle East. The risk of supply disruptions is a significant threat for those heavily reliant on fossil fuel sales. Therefore, risk mitigation is an important part |
| U.S. hasn’t seen full Covid brunt from Thanksgiving as nation enters Christmas season, Fauci warnsWhite House coronavirus advisor Dr. Anthony Fauci said that the U.S. could see Covid’s “full brunt” coming off the Thanksgiving holiday some point next week. |
| JetBlue puts raises, paid parental leave on hold to cut costs in 2021 as Covid hinders travel reboundJetBlue Airways says more belt-tightening needed in 2021 as the pandemic makes a recovery more difficult. |
| Fauci says Covid could be under control in ‘back half of 2021’ if enough people are vaccinatedRestaurants could likely open at full capacity and sports arenas and theaters could operate safely if enough people are vaccinated, Dr. Anthony Fauci said. |
| Ford adds new off-road ‘Tremor’ pickup to its profitable F-150 lineupThe new edition to the F-150 is Ford’s latest attempt to grow its loyal truck customers and increase profits by tapping into increasingly popular off-road models. |
| United getting first 737 Max since Boeing jet was grounded in 2019United Airlines is scheduled to take the first delivery of a 737 Max from Boeing since regulators lifted a flight ban on the planes last month. |
| Warner Bros. CEO defends hybrid film release model, says studio is in talks with top talentAnn Sarnoff, the chairman and CEO of Warner Bros., defended the company’s decision to release all 2021 films in theaters and on HBO Max on the same day. |
| Oxford-AstraZeneca vaccine is safe and effective, researchers confirm in peer-reviewed studyThe AstraZeneca-University of Oxford vaccine is the first to have its late-stage trial results independently reviewed and published in a medical journal. |
| Privacy concerns a challenge for Trump administration’s effort to track Covid vaccinationsAs part of that effort, the CDC has asked states to sign data use agreements that would share personally identifiable information with the federal government. |
| The FDA says Pfizer’s Covid vaccine is safe and effective. But trial participants warn of intense symptoms after second shotThe FDA says the Pfizer Covid vaccine is both safe and effective. CNBC spoke with Pfizer and Moderna trial participants about what side effects you can expect. |
| Boeing reports more 737 Max cancellations as airlines prepare to return the plane to serviceBoeing reported 88 cancellations for the 737 Max plane as well as some orders for a larger variant by Virgin Australia. |
| General Motors will not offer buyouts to GMC dealers who don’t want to sell Hummer EVsAbout half of GMC’s 1,695 dealers have agreed to invest and sell electric vehicles, beginning next fall with the brand’s Hummer EV pickup. |
| FDA says Pfizer Covid vaccine provides some protection after first dose, meets success criteriaThe FDA said data from Pfizer’s coronavirus vaccine trials was “consistent” with recommendations put forth by the agency for an emergency use authorization. |
| Beware of Covid vaccine scams. Here’s how to make sure you get a real oneScammers are preying on Americans’ eagerness for a vaccine by making false claims and advertising phony and potentially dangerous immunizations. |
| Bonds, Stocks, & Bullion Bid As Complacency Careens Beyond Dot-Com HighsBonds, Stocks, & Bullion Bid As Complacency Careens Beyond Dot-Com Highs Tyler Durden Tue, 12/08/2020 – 16:01 Stocks oscillated gently lower overnight then went wild as the cash markets opened, soaring all day but appeared to roll over a little when McConnell suggested slashing the liability protections and state/local aid from the COVID Relief bill (implicitly reducing the amount of free money to be handed out) and extended losses a little more when headlines on SCOTUS taking up Texas’ election case against MI, PA, and WI… |
| Surprise: Student Debt Relief Will Mostly Help Middle- And Upper-Income HouseholdsSurprise: Student Debt Relief Will Mostly Help Middle- And Upper-Income Households Tyler Durden Tue, 12/08/2020 – 15:40 Now that the air is heavy with talk of debt forgiveness, initially starting with the government’s $1.6 trillion student loan portfolio before Democrats move to a broad debt jubilee much to the chagrin of all those Americans who responsibly have paid their obligations every month, investment banks have started analyzing the impact of the various student loan forgiveness proposals. One such analysis comes from Goldman’s economics team which, in what will likely come as a disappointment for progressives, has calculated that even substantial debt reilef “would only have a small effect on GDP”, specifically, forgiving federal student loans up to $10k would add less than 0.1% to the level of GDP starting in 2021, and cumulatively add only $0.43 in real GDP for each $1 of forgiven debt over the next 10 years. A more generous debt relief program that forgives federal loan balances up to $50k would provide a slightly bigger boost to GDP, but would have a smaller per-dollar impact. Meanwhile, forgiving federal student loans up to $10k would likely cost around $300bn (1.6% of GDP), while forgiving loans up to $50k would cost around $800bn (4.1% ofGDP). However, since these loans have already been funded through prior Treasury issuance, the impact on T … |
| Inflation Is Back… Big TimeInflation Is Back… Big Time Tyler Durden Tue, 12/08/2020 – 15:22 Authored by John Rubino via DollarCollapse.com, The conventional view of inflation is that it’s not only low, but dangerously low and in need of aggressive stimulus. But that view is becoming increasingly hard to defend, given all the things that are soaring in price. Consider: |
| Democrat Proposes Tying $1,500 Stimulus Checks To COVID VaccinationsDemocrat Proposes Tying $1,500 Stimulus Checks To COVID Vaccinations Tyler Durden Tue, 12/08/2020 – 15:05 With Democrats and Republicans still stuck at an impasse on stimulus negotiations, one Maryland Congressman and erstwhile presidential candidate named John Delaney has engineered a novel strategy for killing two birds with one stone: dispersing another round of stimulus funds, while ensuring that enough Americans consent to receiving the vaccine that the US can quickly top the roughly 70% immunity threshold at which point scientists believe the vaccine will stop propagating. |
| Sir Jim Ratcliffe confirms new car to be made in FranceThe confirmation by the Ineos billionaire ends slim hopes it would be made in Wales. |
| Honda warns of parts shortage due to UK port woesThe Japanese carmaker says congestion at UK ports could hamper production at its Swindon plant. |
| Brexit food supply fears grow: ‘It’s too late, baby’The industry tells MPs it has not had enough time to prepare for the end of the Brexit transition period. |
| Yen carry trade is back in vogue. Look who is benefitingRecord rate reductions have caused the tri-party repo rates to fall below the reverse repo – and banks are making money without much sweat. |
| Retail NPAs might spike to 10-year high of 4%: ReportœAs the moratorium period ended in August 2020, we could see some increase in retail stress in the coming quarters, said Suresh Ganapathy, associate director, Macquarie Capital. |
| S&P Global revises Tata Steel’s outlook to stable from negative on earnings reboundThe global rating agency has also affirmed B+ long-term issuer credit ratings on the two companies and the B+ long-term issue rating on the senior unsecured notes issued by ABJA. |
| Key Words: There’s only one company that could get in the way of Tesla shares’ path to $2,500, and it’s not another car maker, says veteran tech investorHis target: $2,500 within three years. Such a rally in the stock would bring Tesla’s valuation above $2 trillion, joining Apple, at this point, as the only other company in that lofty realm. |
| : The top housing market in the country heading into 2021 is in Northern California but not the Bay AreaWhile San Francisco may not have the nation’s hottest housing market these days, its influence over the country’s top markets remains. |
| The Margin: Still refusing to wear a mask? Bill Nye would like to have a word with youBill Nye struck TikTok gold over the weekend, racking up about 14 million views with his rant aimed at anti-maskers. |
Summary of Economic Releases this Week
Earnings Summary for Today
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