Written by Gary
Peloton Stock Is Under Pressure as UBS Says to Sell (SPY +0.6%). Goldman earnings top estimates and oil rises on expectations of big US Stimulus package.
Here is the current market situation from CNN Money | |
 | North and South American markets are mixed. The S&P 500 is higher by 0.66%, while the IPC is leading the Bovespa lower. They are down 1.82% and 0.71% respectively. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Oil Rises On Expectations Of Big U.S. Stimulus PackageOil prices shook off the risk-off trade on Monday and rose early on Tuesday, amid expectations that U.S. Treasury Secretary nominee Janet Yellen will push for a large relief package to support the U.S. economic recovery. As of 10:39 a.m. ET on Tuesday, WTI Crude prices were up 0.92 percent at $52.80 and Brent Crude was trading up 1.92 percent at $55.80. A weaker U.S. dollar also helped the rise in crude oil prices. The dollar slipped from a one-month high early on Tuesday, just before Yellen was expected to speak at the Senate Finance Committee |
| Bezos And Gates Backed Fund To Invest In Clean Energy StartupsBreakthrough Energy Ventures (BEV), theclean-tech fund backed by well-known billionairesincluding Bill Gates, Jeff Bezos and Michael Bloomberg, has raised $1 billion for the second time in four years to help start-upscapable of drastically cutting global emissions. Founded in 2016, the venture capital fund backed 45 emerging companies with its first billion and it is now planning to support between 40 and 50 emerging businesses. While BEVs scope is broad, it is mostly focused on clean products and technologies, |
| Bank Of France To Curb Exposure To OilThe French central bank will reduce its exposure to the oil and gas industry over the next four years as part of efforts to redirect its resources to more renewable energy projects, Reuters has reported, citing a statement by the bank. By 2024, the bank will stop lending money to companies that source more than a tenth of their revenues from oil and 50 percent from gas. From this year, the Bank of France will no longer lend to shale oil and gas developers as well as companies with Arctic or deepwater projects on their books. At the same time, the |
| IEA Slashes Oil Demand Outlook For 2021The International Energy Agency cut its crude oil demand recovery outlook for this year by 300,000 bpd to 5.5 million bpd in its latest Oil Market Report, out today. The authority said it expected demand to average 96.6 million bpd in 2021, after crashing by an all-time high of 8.8 million bpd in 2020 under the weight of the Covid-19 pandemic. On the supply side, the IEA forecast a recovery of over 1 million bpd, most of it to come from OPEC members after last year supply fell by 6.6 million bpd. It also sounded a positive note, leaving space for |
| Investors Growing More Bullish On OilInvestors are becoming increasingly bullish on crude oil, with trading activity on the most popular crude and fuels contracts off to a strong start of the year. Reuterss John Kemp reported yesterday that hedge funds had increased their purchases of crude oil and fuels by the equivalent of 51 million barrels in the week to January 12. This, Kemp noted, was the biggest weekly buying spree for the past seven weeks, bringing the total to 540 million barrels of oil equivalent since mid-November. Bloomberg also notes a sharp uptick in buying on |
| Iran Looks To Poach Saudi Oil Contracts With New ProjectsIran and China look to exploit Saudi oil deficit with new push in West Karoun Iran And China Exploit Saudi Weakness With New Oil MegaprojectIran And China Capitalize On Saudi Weakness With New Oil ProjectsIran And China To Exploit Saudi Oil Deficit With New ProjectsIran Looks To Poach Saudi Oil Contracts With New ProjectsIran Prepares To Seize Saudi Market Share Through New Oil ProjectsIran Prepares To Takeover Saudi Market ShareIran Looks To Make Aggressive Move On Saudi Oil Market Share Iran has been looking in earnest |
| EV start-up Rivian raises $2.65 billion in new funding round led by T. Rowe PriceRivian has raised about about $8 billion since 2019 as the company moves closer to production of an all-electric pickup and SUV. |
| Peloton shares fall after UBS hits cycle maker with downgrade, citing huge stock gainsPeloton shares tumbled after UBS downgraded the stock to sell from neutral, saying the runup over the past year leaves more downside risk for investors. |
| Flight attendants play ‘babysitter for adults’ as bad behavior onboard spikes; FAA threatens hefty finesAirlines are carrying fewer people but bad behavior is on the rise. |
| Japanese automakers still bet on sports cars in the SUV eraThe 1990s are commonly thought to be the golden age of Japanese sports cars. Now cars such as the Toyota Supra and Acura NSX are coming back. Can they make it? |
| IHOP introduces burritos and bowls in push for more takeout customersThe Dine Brands chain is hoping to entice customers with the easy portability of the burritos and bowls, which will be available all day. |
| Dr. Scott Gottlieb estimates only about 120 million people in U.S. really want Covid vaccine“We can’t lose sight of that and just take for granted that everyone wants this vaccine,” the former FDA chief told CNBC. |
| Office Depot rejects takeover offer from Staples, but says it’s open to other types of venturesThe parent company of Office Depot said in a letter that it would be open to another deal that draws less scrutiny from antitrust regulators. |
| Microsoft is investing and partnering with GM’s Cruise on self-driving carsMicrosoft will join GM, Honda Motor and other institutional investors in a combined new equity investment of more than $2 billion in Cruise. |
| Stellantis jumps 11% in NYSE debut. Here’s what you need to know about the world’s fourth-largest automakerStellantis ” the merged automaker of Fiat Chrysler and France-based Groupe PSA ” is the world’s fourth-largest automaker by volume. |
| MyPillow’s CEO, a Trump supporter, says Bed Bath & Beyond, Kohl’s stopped selling his productsMyPillow CEO Mike Lindell said retailers including Bed Bath & Beyond and Kohl’s are removing the company’s products, prompting calls for boycotts. |
| Biden Covid advisor challenges Cuomo’s letter to buy vaccine directly from PfizerBiden Covid advisor Dr. Celine Gounder said the New York governor’s request to buy the Pfizer vaccine directly could cause more problems than it solves. |
| Germany discovers new Covid variant among 35 hospital patientsGermany is the latest country to discover a new mutation of the coronavirus, with a new variant found among a group of hospital patients in Bavaria. |
| Call for nominations for CNBC’s 2021 Disruptor 50 listCNBC is now accepting nominations for its Disruptor 50 list of companies upending industries and altering the economy. |
| Natgas Plunges 5% On New Weather Models Forecasting Milder TempsNatgas Plunges 5% On New Weather Models Forecasting Milder Temps As soon as Goldman Sachs gets bullish on natural gas, new weather models are forecasting warmer weather trends for the next two weeks. As a result, NYMEX Henry Hub natgas February futures have plunged 5% Tuesday morning.Â
The plunge in natgas futures come on milder forecasts for the US, which means heating demand will wane over the next two weeks than previously expected. “That decline came even though liquefied natural gas (LNG) exports remained near record levels and last week’s storage draw was slightly bigger than expected,” said Investing.com’s Ajay Kedia. Kedia said, “US natural gas production and demand will drop in 2021 as the economic fallout from coronavirus lockdowns continues.” Meteorologists at BAMWX expanded more on t … |
| Ask Me Anything with “The Young Bucks” Ask Me Anything with “The Young Bucks” Real Vision editors Max Wiethe and Jack Farley source questions from Real Vision members via The Exchange in this special, pre-recorded edition of The Real Vision Daily Briefing. Max and Jack discuss everything from how quantitative easing impacts the economy, to who their favorite contributors are, to how the evolution of their macro frameworks have evolved as a result of working at Real Vision. In addition to sharing their thoughts on stocks, bonds, and crypto, Max and Jack consider how their relatively young age should impact their risk tolerance and portfolio construction. Tyler Durden Tue, 01/19/2021 – 12:00 |
| Johnstone: Viral #TrumpsNewArmy Video Is Liberals At Their Craziest And ScariestJohnstone: Viral #TrumpsNewArmy Video Is Liberals At Their Craziest And Scariest Authored by Caitlin Johnstone via Medium.com, A new viral video calling on liberals to form œan army of citizen detectives to gather information on Trump supporters and report their activities to the authorities has racked up thousands of shares and millions of views in just a few hours.
The hashtag #TrumpsNewArmy is trending on Twitter as of this writing due to the release of a horrifying video with that title from successful author and virulent Russiagater Don Winslow. As of this writing it has some 20 thousand shares and 2.6 million views, and the comments and quote-retweets are predominantly supportive. |
| Nomura Spots A BOJ Catalyst That Could Trigger Even More Treasury TurmoilNomura Spots A BOJ Catalyst That Could Trigger Even More Treasury Turmoil Earlier today we discussed last week’s “very large” options expiration, which as SpotGamma calculated sparked a ~50% reduction in single stock gamma, which on one hand has left markets vulnerable to short-term volatility but on the other – as Nomura’s Charlie McElligott poetically put it – sparked a “gamma unchlenching” as evidenced by Friday morning’s near -1.5% peak-to-trough decline in ESA, a -2% high-to-low move in RTYA and a -1.5% hi-lo move in NQA post Friday’s Op-Ex index settlement, as those previously insulating Dealer hedging flows were reduced as options expired. So with opex out of the way, dealers are once again roughly Gamma neutral; echoing what we said earlier, McElligott notest that this “means it would not take much of a pullback to pivot towards Short Gamma œaccelerant flows to the downside, especially as now we hit peak œbuyback blackout into EPS, as well as the historically œnegative forward returns that come with œhigher earnings revisions.” While that is the risk scenario, in the meantime we are enjoying all the benefits of renewed euphoria after last week’s selloff with equity implied vols “again getting hammered into Wednesday’s VIXpiry” with McElligott observing that “UX1 is already down 1vol this morning, while broad cross-asset markets look like resumption of recent thematic trend “USD lower vs Risk FX & Crypto, UST yield curves … |
| HSBC to close 82 branches this yearThe bank has named the branches that will close between April and September, but aims to avoid redundancies. |
| MGM Resorts ends bid to buy Ladbrokes owner EntainEntain’s shares tumble after the US casino operator walks away from a takeover attempt. |
| Arcadia set to shut 31 shops with loss of 700 jobsAdministrators for Sir Philip Green’s empire have been seeking buyers for the group since November. |
| Indigo Paints raises Rs 348 cr from anchor investors ahead of IPOA total of 23,35,020 shares have been allotted to 25 anchor investors at Rs 1,490 apiece, which is the upper end of the price band, the company said in a statement. |
| $40 billion fund manager says India will add trillion dollar GDP every few yearsAs part of the ongoing multi-decadal growth super-cycle, India is expected to add a trillion dollar to nominal GDP every few years, Ritu Arora, CEO and chief investment officer (CIO) Asia at Allianz Investment Managers, said. |
| Bajaj Finance Q3 preview: Bottomline likely to fall by 25%, margins may be under pressureBrokerages say its net interest income is likely to be flat to negative and profit may drop by a quarter, compared to the same quarter last year. |
| The Wall Street Journal: China clears Cisco-Acacia deal ” with conditionsChina’s antitrust regulator approved Cisco Systems Inc.’s acquisition of Acacia Communications Inc., clearing the deal for completion under several conditions aimed to protect supply to the companies’ Chinese customers. |
| NewsWatch: Stock-market bulls are fooling themselves over the risk of a bear market while the economy keeps growingThere’s another trigger for big declines in the stock market beyond economic recession. |
| Earnings Outlook: Intel earnings: We know who the next CEO is, but what decisions will be made before he arrives?As Pat Gelsinger returns to Intel Corp. as chief executive, investors are likely to skim past the chip maker’s quarterly results and short-term outlook to look for more detail on the company’s nebulous plans to get back on track as a chip leader. |
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