Written by Gary
Stocks making the biggest moves in the premarket: IBM, Sierra Wireless, Intuitive Surgical (SPY -0.7%). Markets to open lower halting a rally fueled by stimulus hopes.
Here is the current market situation from CNN Money | |
 | European markets are lower today with shares in London off the most. The FTSE 100 is down 0.79% while France’s CAC 40 is off 0.67% and Germany’s DAX is lower by 0.64%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | Was Saudi Arabia’s Surprise Production Cut A Good Idea?Oil prices have risen by 10 percent since the end of 2020 and 8 percent since the OPEC+ meeting two weeks ago, but the rally has nothing to do with the short-term oil demand outlook. It has been almost exclusively due to the decision of Saudi Arabiathe worlds top oil exporter and OPECs de facto leaderto cut an additional 1 million barrels per day (bpd) from its production in the first quarter. Saudi Arabia, as well as major forecasters, expected oil demand in Q1 to continue to struggle as major economies in Europe and |
| China Snubs Washington With Big Oil Deals In South IraqThere are three major troubling factors for new U.S. President Joe Biden. In the recently agreed US$2 billion fiveyear prepayment oil supply deal between the Federal Government of Iraq (FGI) in Baghdad and Chinas Zhenhua Oil. First, is that the deal is straight out of the playbook that Russia used to gain control over Iraqs semi-autonomous northern region of Kurdistan in 2017. Second, according to various sources close to Iraqs Oil Ministry spoken to by OilPrice.com last week, this deal between Russias Rosneft |
| OPEC+ Compliance With Oil Production Pact Drops To 99%The producers part of the OPEC+ alliance complied with the oil output cuts at 99 percent in December 2020, down from 101 percent compliance in November, sources at the OPEC+ group told Reuters on Thursday. The technical and ministerial panels of the alliance will meet in early February to discuss compliance and the state of the oil market, and the final number on OPEC+ compliance for December could slightly change before that, one of the sources in the group told Reuters. Earlier this month, tanker tracking firm Petro-Logistics estimated that OPEC+ |
| Could This Be The Best Way To Play The Oil Rebound?A three-well drill campaign has just been launched by a small-cap explorer in a massive Permian basin that could end up being the next major conventional onshore oil discovery in the world. And everyones watching as many names in the oil industry and resource assessment gather around Reconnaissance Energy (TSX-V: RECO; OTC:RECAF). Its exciting for two reasons. First, theres no more potentially lucrative risk-reward setup than a small-cap sitting on a high-risk exploration play. Plays like this that succeeded |
| Iraq Slashes 2021 Oil Exports To India To Meet OPEC+ QuotaOPECs second-biggest oil producer, Iraq, has reduced its term supplies for 2021 to several major Indian refiners by 10-20 percent, industry sources told Reuters, some of them noting that the Iraqi move was totally unexpected. Iraq has been the biggest laggard in the OPEC+ production deal, producing above its quota in the agreement and drawing criticism from OPECs de facto leader and largest producer, Saudi Arabia, last year. In what looks like a move to try to fall in line with its commitment, Iraq is now said to be reducing term |
| Will Argentinas Vaca Muerta Shale Play Ever Recover?Last year was tough for the global oil industry as the COVID-19 pandemic and an ongoing oil supply glut rocked petroleum-dependent emerging economies, notably in South America, to their core. Oil companies around the world were forced to slash spending, shutter operations, and even look to restructuring balance sheets to survive. While the latest oil price rally, triggered by Saudi Arabias surprise one million barrels per day production cut has provided relief for many, Argentina and national oil company YPF are still struggling with the |
| ‘Many people are suffering’: Business leaders must prioritize workers’ mental health in Covid lockdown, CEO saysWorkers have reported worsening mental health during the coronavirus pandemic, according to an Adecco-commissioned survey of 8,000 office-based staff. |
| UK health experts have advice for the U.S. on fighting the new Covid strainThe variant, known as B.1.1.7., has an unusually high number of mutations and is associated with more efficient and rapid transmission. |
| ‘No Time to Die,’ ‘Ghostbusters: Afterlife,’ ‘Uncharted’ among latest Hollywood film delaysOn Thursday, MGM and Sony both announced that major films from their 2021 slate would be postponed. Among those titles are the latest James Bond flick “No Time to Die” and “Ghostbusters: Afterlife.” |
| A year into the Covid crisis, scientists explain what we learned ” and what we got wrongThe first U.S. case of Covid-19 was reported Jan. 21, 2020, by the CDC. A year later, health experts reflect on the most important lessons learned. |
| Airline stocks fall after EU leaders impose travel curbs within the blocAirline shares dropped on Friday after European governments announced further travel restrictions to fight growing Covid infection rates. |
| The Mega Millions jackpot is $970 million. What to know before you buy a ticketThe game’s top prize has been climbing for 37 weeks through twice-weekly drawings with no ticket matching all six numbers pulled. |
| 5 things to know before the stock market opens FridayDow futures fell Friday as Intel and IBM came under heavy pressure after releasing quarterly results late Thursday. |
| Sluggish Covid vaccine rollout threatens Wall Street’s rosy outlookThe market’s optimism and economic realities could clash if Americans hold on to pandemic habits or spend conservatively because of the recession. |
| Johnson & Johnson plans to have 100 million vaccines for Americans by spring, board member saysA J&J board member said œif the clinical trial works out, the company could significantly increase the nation’s Covid vaccine supply availability. |
| Hershey sees business opportunity in family movie nights, tight budgets as Covid pandemic drags onThe chocolate and snacks company is trying to move quicker to adapt to changing consumer behavior as people shop more online and extend seasonal celebrations. |
| Biden administration is trying to figure out what’s delaying Covid vaccine shots, CDC saysThe new CDC director said Thursday that the Biden administration is trying to figure out exactly what’s holding up the national Covid-19 vaccine rollout. |
| Fauci at his first Biden briefing: I took ‘no pleasure’ in contradicting Trump on CovidFauci, who’s now advising President Joe Biden, said he took no pleasure in contradicting Trump, who often made false claims about the severity of the pandemic. |
| Ford to spend $610 million to recall 3 million vehicles due to potential air bag issuesFord will recall 3 million older vehicles due to potential issues with air bag inflators in the vehicles, costing the automaker an estimated $610 million. |
| Citron Research Says “Hacking Attempts” Interrupted Livestream Detailing GameStop ShortCitron Research Says “Hacking Attempts” Interrupted Livestream Detailing GameStop Short Andrew Left of Citron Research took to Periscope yesterday to try and layout his short thesis on GameStop, which he claims is going back to $20 per share. But instead of completing his video informing the public of his investment thesis, Left found out first hand the “madness of crowds” when he set off many GameStop bulls in the WallStreetBets subreddit, who took to the web to make pests of themselves during his video. Left was then forced to stop his stream, explaining on Twitter that too many people were trying to access his Twitter account at the time. Twitter locked his account as a precaution, Bloomberg reported Thursday night, and eventually had to work with Left to get it reinstated. “Too many people hacking Citron twitter, will record and post later today. $GME going to $20 buy at your own risk,” Left tweeted mid-day on Thursday.Â
Left took to YouTube later in the day to finish the video he had started. œI’ve never seen such an exc … |
| Futures Slide As Euphoria Fizzles On Renewed Lockdown FearsFutures Slide As Euphoria Fizzles On Renewed Lockdown Fears Global shares slid from record highs, and US equity futures tumbled on Friday, halting a rally fuelled by stimulus hopes, amid renewed investor concern about tighter, extended coronavirus restrictions after Hong Kong announced it would lock down 150 residential buildings in an “unprecedented” bid to contain an outbreak of covid, coupled with Joe Biden’s warning that U.S. deaths will hit 500,000 next month. Treasuries edged up and the dollar strengthened for the first time this week. Bitcoin rebounded sharply overnight, rising as high as $32,000 after tumbling almost 20% on Thursday and sliding below $29,000.
S&P futures were down 0.8%, or 29 points, to 3,817. Among the top movers were Intel which beat on EPS and revenue making gains just before the close before paring to trade lower by 4% in the pre-market after the company unveiled plans to keep chip production in house until 2023 while IBM tumbled 8.2% in premarket trading on Friday, after it reported fourth-quarter revenue that missed expectations. Analysts wer … |
| Hong Kong Imposes Unprecedented COVID Lockdown As China Scrambles To Protect BeijingHong Kong Imposes Unprecedented COVID Lockdown As China Scrambles To Protect Beijing In the first sign of confirmation that the current COVID resurgence taking place in northeastern China might be more widespread than the Chinese state (and its attendant party-controlled press organs) have been letting on, the city of Hong Kong on Friday just announced its first-ever lockdown, a measure that is reminiscent of the harsher measures used to combat the outbreak of SARs, which hammered the tiny (formally) autonomous city state nearly 20 years ago.
According to the South China Morning Post, Hong Kong will lock down around 150 residential buildings in coronavirus-hit Yau Tsim Mong district. To enforce the measure, the city will deploy more than 1.7K “disciplined services officers” – 500 from police, and the rest from customs, immigration, fire services and correctional services – in an “unprecedented” bid to protect a neighborhood stuffed with ageing, subdivided flats, apartments. Like elsewhere in China, new … |
| Here’s What NatGas Bulls Are Betting On In The Next MonthHere’s What NatGas Bulls Are Betting On In The Next Month Weather models continue to suggest warmer than average temperatures this month across much of the US from the South to the Northeast. Warmer trends could continue next month, pressuring natural gas prices as demand crumbles. However, natgas bulls are closely watching the Polar Vortex and Madden Julian Oscillation for any shifts. Kirk Hinz, meteorologist in charge at US-based BAMWX, wrote that “data continues to roll-forward warmer as we end the first month of 2021 and open up February.” Hinz outlines what needs to happen for cooler risks to return for the central to the eastern US in the second half of the month. There’s a risk, he said, if models don’t shift, warmer weather trends could linger through the entire month. “The problem here is two-fold: the remnants of the Polar Vortex (and its cold source) will continue to be placed on the other side of the Planet, leaving warmer air potential over the US; secondly, the MJO (Madden Julian Oscillation) looks to hold in phases 4-6 ahead, all of which hold warmer risks for portions of the central to the eastern US for January into February,” Hinz wrote. |
| Brexit: Retailers warn they could burn goods stuck in EUUK retailers may abandon goods EU customers want to return because it is cheaper than bringing them home. |
| Shoppers stuck at home shun new clothes in 2020Clothing was the hardest-hit sector last year, seeing a 25% drop in sales overall. |
| Brexit: Nissan commits to keep making cars in SunderlandThe Japanese car maker has told the BBC its Sunderland plant is secure for the long term. |
| Budget 2021 should focus on three ‘R’s: Relief, recovery and reformsLeading indicators like electricity consumption, freight, PMI and crucial data like GST collections and automobile sales point to a V-shaped recovery. Low interest rates have turned out to be a major tailwind for sectors like construction and automobiles. |
| What to do when high PEs give you jitters? Here’s the answerOne of the biggest challenges of earnings is that it does not take into account the capital structure of a company. In simple terms, it means it completely disregards the debt taken by a company. |
| Yesterday once more? Market has a stock of worryThe evident mistrust isn’t restricted to whether the Sensex deserves to be where it is. The hectic pace of the turnaround since the crippling sell-off in February-March of 2020 and a narrow pool of growth assets favoured by overseas funds have contributed to the sense of scepticism. |
| : Paid to stay at home: U.K. reportedly may pay £500 to those with COVID-19 to self-isolateThe plan has been floated after a government poll showed that just 17% of those with symptoms are coming forward to be tested, over fears a positive result will jeopardize jobs and financial situations, the Guardian reported, citing a leaked policy document. |
| : With the new Bond film delayed until October, it’s more bad news for cinemasDaniel Craig will now make his final appearance as British Secret Service Agent 007 on Oct. 8, 2021. |
| MarketWatch Premium: If you’re expecting traditional value stocks to outperform growth stocks, you ‘are going to wait forever,’ this fund manager saysIt’s better to focus on free cash flow rather than price to earnings or book value, according to Thomas Cole of the Distillate U.S. Fundamental Stability & Value ETF. |
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