Written by Gary
The market is getting nervous about Powell’s testimony this week (SPY -0.8%). Nasdaq Composite retreats 2.5% to end around lowest in three weeks and log worst day since Jan.
The Market in Perspective
Here are the headlines moving the markets. | |
U.S. Shales Struggles Will Be Help OPEC Stabilize Oil PricesOPEC and its allies could find managing supply to the oil market easier this year, as U.S. shale producers are still not rushing to accelerate output at $60 oil, OPEC sources tell Reuters. Even before the Texas Freeze last week, which is estimated to have reduced U.S. production by as much as 4 million barrels per day (bpd), American shale drillers were not boosting production as most of the large firms continue to vow capital discipline and a measured increase in drilling activity, with an eye of returning more capital to investors, rather than | |
Goldman Sachs Sees $75 Oil In Q3 2021Goldman Sachs is now even more bullish on oil, expecting Brent Crude prices to hit $75 a barrel in the third quarter this year, on the back of faster market rebalancing, lower expected inventories, and traders hedging against inflation. In a note on Sunday, cited by Forexlive, the investment banks analysts forecast Brent Crude prices reaching the $70 a barrel mark during the second quarter of this year, and hitting $75 in the third quarter. Goldman Sachs is thus lifting its previous Q2 and Q3 forecasts by $10 per barrel. Faster re-balancing | |
Qatar’s LNG Megaprojects Are Making Markets Increasingly CompetitiveQatar Petroleums recently set a new record for the largest LNG export project ever. By 2026, the country will once again become the world’s largest supplier of liquefied natural gas by overtaking Australia. The signing of the contract was delayed for a year due to economic uncertainty as a direct consequence of the Covid-19 pandemic. With the mega-expansion, the market could be oversupplied for years and the feasibility of other projects that are awaiting their investment decision could be in jeopardy. For years Qatar Petroleum was the de-facto | |
Teslas Cheapest Model Y Is No Longer AvailableTesla has removed the cheapest version of its Model Y from its website and configurator, weeks after launching the Standard Range and days after reducing the price of the entry-level Model Y by $2,000, making the new model more unattainable for the average car buyer. Tesla launched the Standard Model Y for pre-order last month, with an estimated range per EPA at 244 miles. Elon Musk had said on Twitter in July last year that the Standard Range Model Y would not be made because its range would be would be unacceptably low ( | |
Iran Claims U.S. Sanctions Cost $1 Trillion, Demands CompensationA major crisis was narrowly averted Sunday over Iran’s nuclear facilities and the plannedbooting of IAEA inspectors from key sites, scheduled according to a prior Iranian parliament decision for Feb. 21. Tehran reached a last-minute agreement with the UN nuclear watchdog, now being described as a temporary “technical understanding” to keep the inspections going for another three months. According to the agreement, the IAEA willno longer conduct last-minute “snap inspections”after Tehran argued that it shouldn’t be subject to such | |
Oil Prices Spike As U.S. Outages Tighten SupplyOil prices rebounded again on Monday, with WTI shooting up more than 3% to over $61 per barrel by noon ET. Oil prices spiked to 13-month highs last week after the Texas Freeze, but prices sagged toward the latter part of the week. But on Monday, a new price rally began, with the price of WTI spiking $1.81 per barrel to $61.05. Brent shot up by $1.73 to $64.64. The price hike comes shortly after Goldman Sachs forecast that oil prices would climb into the $70s over the next few months, and after it became clear that U.S. oil production and refineries | |
FDA says Covid vaccines that target new variants won’t need large clinical trials to win approvalThe FDA said Monday that modified Covid-19 vaccines against new, emerging variants may be authorized without the need for lengthy clinical trials. | |
More Americans are looking to move as remote work gains acceptance during Covid pandemicTwenty-eight percent of Americans have considered relocating during the pandemic, NPD said. | |
Kohl’s rejects activist investor group’s board takeover attempt, shares soarA group of activist investors with a combined 9.5% stake in Kohl’s confirmed it has nominated 9 directors to Kohl’s board, looking to turn the business around. | |
Dr. Scott Gottlieb says an estimate for ‘herd immunity by April’ too aggressive but directionally rightFormer FDA Commissioner Dr. Scott Gottlieb told CNBC on Monday he expects Covid cases in the U.S. to keep declining into the summer. | |
Taco Bell enters chicken sandwich wars with its own spin: A taco versionTaco Bell said Monday that it’s testing a taco version of the chicken sandwich in Nashville, Tennessee, and Charlotte, North Carolina. | |
Op-Ed: Trust in Covid vaccine needs to be earned for Blacks and Latinos after decades of mistreatmentAfter decades of racist disinvestment and medical mistreatment, Black and Latino communities have every reason to be skeptical of the Covid vaccine. | |
CDC study shows teachers could play ‘central role’ in Covid spread at schools where masks aren’t wornThe CDC study said educators “can play an important role in in-school transmission” when physical distancing and mask compliance are not optimal. | |
Royal Caribbean CEO says booking data for cruises suggests a surprisingly positive post-Covid recoveryRoyal Caribbean CEO Richard Fain told CNBC on Monday that booking data for cruises suggests a surprisingly positive post-Covid recovery. | |
Movie theaters in New York City can open in March at 25% capacityAfter nearly a year of closures, New York City cinemas will be permitted to open on March 5, Gov. Andrew Cuomo said Monday. | |
Watch live: Biden Covid team holds briefing as U.S. death toll reaches grim milestonePresident Joe Biden’s Covid-19 response team is holding a news briefing on the coronavirus pandemic. | |
Chief of Cherokee Nation wants Jeep to stop using tribe’s name on SUVsJeep started using the Cherokee name more than 45 years ago, including currently on the brand’s top-selling Grand Cherokee as well as a smaller SUV. | |
25 highest-paid hedge fund managers made $32 billion in 2020, a recordThe record payday is likely to draw criticism over hedge fund pay and fairness in financial markets. | |
LVMH buys 50% stake in Jay-Z’s champagne brand Armand de BrignacLVMH bought a 50% stake in rapper Jay-Z’s champagne brand, Armand de Brignac. | |
Big Tech, Bitcoin, & The Buck Battered As Commodities Crash-UpBig Tech, Bitcoin, & The Buck Battered As Commodities Crash-Up Inflationary impulses are showing up everywhere. Real yields are rising rapidly (with 30Y no longer negative)… Source: Bloomberg Breakevens have soared, but we do note that the BE curve implies beyond 5Y will see a disinflationary process… Source: Bloomberg Commodities are soaring to the highest since 2013… | |
Donald Trump ‘Probably’ Interested In 2024 Presidential Run: Lara TrumpDonald Trump ‘Probably’ Interested In 2024 Presidential Run: Lara Trump Authored by Isabel Van Brugen via The Epoch Times (emphasis ours), Former President Donald Trump’s daughter-in-law and former senior adviser Lara Trump indicated that he is œprobably interested in running for office in 2024. œHe has told us to stay tuned and that this is not over for him, and he has indicated that he probably would be interested in running again in 2024, she told Fox News on Sunday. Eric Trump and his wife Lara arrive for outgoing U.S. President Donald Trump and First Lady Melania Trump’s farewell at Joint Base Andrews in Maryland on Jan. 20, 2021. (Alex Edelman/AFP via Getty Images) In discussing the former president’s scheduled appearance at the Conservative Political Action Conference … | |
De Blasio Appoints NYC “Recovery Czar” 11 Months After Start Of PandemicDe Blasio Appoints NYC “Recovery Czar” 11 Months After Start Of Pandemic 11 months into NYC’s COVID-19 outbreak, and with indoor-dining-capacity slowly expanding, NYC Mayor Bill de Blasio has finally appointed a so-called COVID “recovery czar” following months of criticism of his leadership of the city’s public health resources. The mayor’s pick is Lorraine Grillo, who will lead a newly-constituted, weekly œwar room that spans across government leaders, agencies, business leaders and nonprofits in the city. Input from all corners will reportedly be applied.
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The Only Reason To Be “Bearish” Is “No One Is Bearish”The Only Reason To Be “Bearish” Is “No One Is Bearish” Authored by Lance Roberts via RealInvestmentAdvice.com, I had to do a double-take recently when reading a CNBC headline that stated: œThe only reason to be bearish is there’s no reason to be bearish. It is indeed hard to argue the point. As the article explained:
Key Findings More than 90% of investors believe the economy will be more robust in 2021, with a consensus it’s a V-shape recovery. For the first time since January 2020, chief investment officers want to increase capital spending rather than improve balance sheets. Fund managers’ allocation to cash is down to 3.8%, the lowest since March 2013. Such was just before the œtaper tantrum era under former Federal Reserve Chairman Ben Bernanke. | |
Roadmap: ‘We’re delighted to have dates to work towards’Boris Johnson’s route out of lockdown is a relief for businesses, including pubs, restaurants, gyms and retail. | |
Lockdown: Plan to reopen England’s shops and gyms on 12 AprilBoris Johnson hopes all legal limits on social contact could be lifted in England from 21 June. | |
Epic’s bid to sue Apple over Fortnite in UK rejectedA UK tribunal denied Epic Games permission to go after Apple – but a case versus Google can proceed. | |
Blackstone-owned auto parts firm Sona Comstar set for Rs 6,000-cr IPOThe company will be valued at $3 billion (Rs21,747 crore) in this proposed IPO, said one of the persons mentioned above. | |
Why this stock is a better pick to play the short-term copper rallyShares have rallied 72% in the last one month and 166% in the last three months to close at Rs 98.35 on Monday. The stock is expected to rally another 25% in the next few weeks, said technical analysts. | |
Hindalco announces capital allocation framework, amends dividend distribution policyThe company has decided to allocate around 50% of the cash generated to growth Capex, around 30% towards debt reduction, 8-10% towards shareholder returns and the rest to be retained in treasury. | |
: Even one dose of Pfizer vaccine reduces coronavirus-infection risk, Public Health England saysAn initial dose of the vaccine made by Pfizer and BioNTech cuts the risk of coronavirus infection, Public Health England announced on Monday as U.K. Prime Minister Boris Johnson confirmed plans to relax lockdown rules. | |
The Tell: Oil prices will rally ‘sooner and higher.’ Expect $75 Brent crude this year, says Goldman SachsLots of demand, not enough supply and global economies recovering from the COVID-19 pandemic are all recipes for booming oil prices, says Goldman Sachs. | |
In One Chart: Can the bull market in stocks survive rising inflation, bond yields? Here’s what history saysRising bond yields are sending shivers through the stock market. Here’s a sector-by-sector breakdown of what history says about a rising rate environment. |
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