Written by Gary
Exxon Mobil reports a $20 billion loss, fourth straight quarter in the red (SPY +0.9%). Market Movers: Tata Motors, HDFC Bank soar as Indigo Paints make stellar debut.
Here is the current market situation from CNN Money | |
 | European markets are broadly higher today with shares in France leading the region. The CAC 40 is up 1.16% while Germany’s DAX is up 1.05% and London’s FTSE 100 is up 0.52%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | Aramcos New Stock Offering Looks Doomed From The StartMore shares in flagship oil and gas company, Saudi Aramco (Aramco), may be released for sale to the public if conditions are right, said the Governor of Saudi Arabias sovereign wealth fund, the Public Investment Fund (PIF) last week. This idea was later confirmed by Saudi Arabias de facto ruler, Crown Prince Mohammed bin Salman (MbS). Given how badly the first initial public offering (IPO) was received by international investors in the run-up to its eventual listing on 11 December 2019 and the draconian lengths that Saudi Arabias |
| A Glimmer Of Hope For Oil MarketsOil was off to a reasonably good start this year thanks to the start of a vaccination push and a Saudi commitment to cut more production. The continued surge in Covid-19 infections and a new flare-up in China shook optimism and weighed on prices, but now things appear to be looking up based on the latest supply and demand data and forecasts. For starters, in the good news corner, we have steadily declining crude oil and fuel inventories in the United States. Reuters John Kemp wrote in a Friday column that total crude and fuel stocks in the |
| U.S. Shale: Biden’s Drilling Ban Actually Undermines Emission TargetsThe U.S. oil industry has a message to President Joe Biden’s recent climate executive orders involving the oil and gas sectorrestricting America’s oil production would increase its reliance on foreign imports of oil with more emissions than the crude pumped from America’s oilfields. Over the past two weeks, President Biden rescinded the Presidential Permit for the Canada-U.S. cross-border oil pipeline Keystone XL and suspended permitting for new oil and gas drilling leases on federal lands and waters. The U.S. oil industry argues that the |
| The Single Hottest Sector Of The Clean Energy BoomOver the past half decade, the energy sector has been going through a major seismic shift, pivoting away from fossil fuels toward cleaner, renewable alternatives. The sector has, amazingly, maintained its momentum amid the Covid-19 pandemic and subsequent lockdowns that brutally disrupted the entire global energy sector. A recent report by clean energy watchdog Bloomberg New Energy Finance (BNEF) proves that the renewable energy sector has remained largely immune to the ravages of Covid-19, withglobal energy transition investments in 2020 |
| Natural Gas Prices Explode On Cold Weather ReportsNatural gas prices exploded on Monday, with spot prices soaring more than 10% as cold weather threatens the Northeastern part of the United States. At 1:30 p.m. EST, the spot price for natural gas was $2.833 per MMBtu, a 10.49% increase on the day or an increase of $0.269. That price is about 50% higher than this time last year when it was trading around $1.80 per MMBtu. Front-month natural gas futures (NG1) were $2.84 at that time, as traders anticipate increased demand for the commodity as a massive storm heads toward the northeastern United |
| China Starts Emissions Trading As It Aims For Net Zero By 2060China, the world’s largest polluter, launched on Monday an emissions trading scheme as part of its efforts to become a carbon-neutral economy by 2060. The Chinese authorities introduced as of February 1 a set of rules for carbon emissions trading management, a step toward creating a nationwide unified emissions trading system (ETS), Chinese news agency Xinhua reports. As many as 2,225 power companies in China will have carbon dioxide (CO2) emission caps, and they can now trade their emission quotas via the system. Under the emissions trading scheme, |
| Ulta Beauty to double Black-owned brands in its stores, feature more Black women in adsThe retailer plans to invest $25 million in the initiative, which will celebrate and highlight Black women in ads and TV commercials. |
| Pfizer expects about $15 billion in 2021 sales from Covid vaccinePfizer expects to sell about $15 billion in coronavirus vaccine doses this year, the company announced in releasing its fourth-quarter earnings Tuesday. |
| UPS shares jump on strong fourth-quarter earnings as Covid drives online shoppingUPS revenue jumped 21% to $24.9 billion during the fourth quarter. |
| Impossible Foods lowers grocery store prices amid pandemic-fueled retail expansionImpossible Foods is slashing the suggested prices for U.S. grocery stores by 20%, pushing it closer to achieving price parity with meat. |
| GM’s newest car is a V-8 Cadillac sedan that tops 200 mphCadillac is expected to lead General Motors’ plans for all-electric vehicles, but it still has some surprises in store for traditional gearheads. |
| India’s largest airline expects to reach pre-Covid international capacity by end-2021, CEO saysIndian low-cost carrier IndiGo’s international operations are struggling, but could make a full recovery by the end of the year, said CEO Ronojoy Dutta. |
| 5 things to know before the stock market opens TuesdayThe Dow is set to rise at Tuesday’s open, looking for a second day of gains after last week’s nearly 3.3% decline. |
| Exxon Mobil reports a $20 billion loss, fourth straight quarter in the redExxon reported its fourth straight quarter of losses amid the “most challenging market conditions” the company has ever faced. |
| Biden official says some doctors are holding back needed Covid vaccine doses as a reserve for second shotsHolding back doses is causing some providers to cancel appointments and preventing some Americans from getting their first shots, the official said. |
| Major snowstorm slams Northeast, spurring shutdowns and blackoutsThis year’s first major snowstorm has left cities buried in snow. |
| Marvel TV show set in Wakanda coming to Disney+ as part of 5-year deal with ‘Black Panther’ director Ryan CooglerDisney has struck a five-year deal with “Black Panther” director Ryan Coogler to create exclusive television programming for Disney. |
| Ghost kitchens and delivery-only restaurants may be too popular for their own goodThe coronavirus pandemic has accelerated the popularity of ghost kitchens and virtual brands, but industry experts think that the market may be oversaturated. |
| JetBlue reveals suites with sliding doors for London flightsJetBlue is planning to begin flights to London featuring the new seats in the summer. |
| Exxon Jumps After Reporting First Loss In 40 Years, Vows No Cuts To Its Massive DividendExxon Jumps After Reporting First Loss In 40 Years, Vows No Cuts To Its Massive Dividend Exxon is an odd stock: one day after extremely bullish news hit that the company had negotiated a potential merger with Chevron in what clearly was a trial-balloon, the stock slumped. Yet on Tuesday morning, with Exxon reporting its first annual loss in 40 years, the stock us jumping. For the fourth quarter, Exxon posted a previously disclosed $19.3 billion writedown of U.S. natural gas and other assets, capping the first annual loss for the Western world’s largest oil company in at least four decades. However, excluding the historic impairment, Exxon returned to profit in the fourth quarter, earning 3 cents per share, above the 0.02 consensus estimate, and ending a run of three consecutive quarterly losses.
Some more highlights from the Exxom report: Q4 20 Adj. EPS 0.03 (exp. 0.01), Revenue 46.5bln (exp. 48.76bln) CapEx USD 4.77bln (exp. 3.99bln) Exceeded cost-reduction objectives, with 2020 capital spending of USD 21 bln below target by USD 2bln; … |
| WTI Crude Hits $55, A One-Year High After Mixed OPEC DataWTI Crude Hits $55, A One-Year High After Mixed OPEC Data Did the ‘Reddit-Raiders’ suddenly shift their crosshairs onto the energy complex? The last few days have seen WTI Crude surge over 6%…
…topping $55 this morning for the first time since Jan 2020.
Source: Bloomberg The catalysts for the move is uncertain amid mixed data from OPEC – on the bullish side, compliance with planned cuts was extremely high; on the bearish side, the cartel cuts its oi … |
| Blain: Apple Bonds Hold A SecretBlain: Apple Bonds Hold A Secret Authored by Bill Blain via MorningPorridge.com, œAdam ate the Apple, and our teeth still ache. Â Yesterday Apple launched a new $14 bln multi-tranche bond deal, raising new debt up to 40 years. It was a classic deal. Although the firm has $196 bln in cash, the world’s most valuable company says it doesn’t really want to be sitting on a large cash position, and many suspect it would much rather give it back to stock holders. Why not? When rates are this low, what’s not to like about leveraging up and monetising equity into debt!
The new Apple bonds pay a 96 basis point premium over US Treasuries for the 40 year bond deal. That may be even be a bargain! If Apple was a sovereign nation, you would not be worried ” it has around $126 bln debt out-standing, which is peanuts when its last quarter generated $110 bln revenues and $28 bln profit. … |
| Most Shorted Stocks Are CrashingMost Shorted Stocks Are Crashing Yesterday, when GME was still trading at $300, we warned traders that the squeeze was almost over because as calculated by S3 Partners, the short interest had collapsed from over 110% to 53%…
… and warned subs in our private twitter feed to take cover. For some reason, we got a lot of grief from the “diamond hands” crew for simply reporting the facts (and as we explained for those wondering, the most desperate shorts went so far as raiding the XRT ETF to obtain GME shares to cover), which are manifesting themselves vividly this morning, with GME crashing by more than half from when we warned yesterday, and was last trading at just $142… |
| GameStop: Real Wolf of Wall Street warns ‘you could lose it all’Jordan Belfort say amateurs should “take their chips off the table” after stocks surge on speculation. |
| Buy now, pay later firms such as Klarna face stricter controlsThe financial regulator says it would be easy for customers to build up unseen debts of £1,000. |
| Centrica boss ‘was posted excrement’ amid pay rowThe boss of the British Gas owner defends “fire and rehire” plans amid protests from staff. |
| Union Budget 2021: No news is good news for investors ‹ ‹The thumps up given by the stock market to the Budget stems from the conspicuous absence of new tax proposals and the focus on growth. |
| Market Movers: Tata Motors, HDFC Bank soar as Indigo Paints make stellar debutAs many as 83 stocks listed on the National Stock Exchange gave buy signal during the session, including State Bank of India, Axis Bank, Zee Entertainment Enterprises, HDFC Bank and Indian Bank. |
| LIC IPO to happen after October: DIPAM SecyTargeting to raise Rs 1.75 lakh crore from the asset sale to finance projects aimed at reviving the pandemic battered economy, the government is also looking to sell Shipping Corp of India (SCI), IDBI Bank Ltd and two other public sector lenders in the fiscal year beginning April 1. |
| December 2020 CoreLogic Home Prices: Annual US Home Price Appreciation in 2020 Outpaced 2019 Levels by 50%Written by Steven Hansen CoreLogic’s Home Price Index (HPI) home prices for December 2020 exceeded expectations in 2020, closing out the year with the highest annual home price gain since February 2014 in December at 9.2%. CoreLogic said:
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| Futures Movers: Oil prices push to 1-year high ahead of OPEC+ meetingsOil future rise Tuesday, chugging higher ahead of this week’s meetings of major producers that aren’t expected to result in any major changes in output levels. |
| : GameStop and other stocks popular on Reddit slump in premarket tradeShares of GameStop and other stocks boosted by retail interest fell sharply in premarket trade on Tuesday. |
| Outside the Box: The GameStop saga is a road map for the Kremlin and other enemies of America ” here’s whyThe next GameStop-like case might not be so funny. |
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