Written by Gary
Refiners and integrated oil firms continue to struggle with low refining margins (SPY -0.2%). Stock futures slip even after Senate passes $1.9 trillion Covid relief bill as bond yields rise,
Here is the current market situation from CNN Money | |
 | European markets are mixed today. The DAX is up 1.33% while the CAC 40 gains 0.75%. The FTSE 100 is off 0.07%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | The Crisis Isn’t Over For Oil RefinersRefiners and integrated oil firms continue to struggle with low refining margins, as a part of global oil demand jet fuel consumption are still enormously depressed by international travel restrictions. Margins for middle distillates, which include jet fuel, have improved since the worst effect of the pandemic last year. But the crisis in the airline industry and the pressure on refiners to curb jet fuel supply amid still very low demand could accelerate permanent closures of refineries geared to produce more middle distillates |
| The Single Biggest Threat To The Electric Vehicle RevolutionWhile 2020 was the year electric vehicles went mainstream, 2021 has revealed a gaping flaw in the EV boom. Demand for the new technology has skyrocketed, both in the United States and across Europe. And this has major companies rushing to get onboard this surging trend. That includes everyone from legacy automakers like Ford and GM to trillion-dollar tech giants like Apple. But the global pandemic has hurt the auto industry in a completely unexpected way. With millions of people working, schooling, and entertaining from home, the number |
| Why Hydrogen Needs Nuclear Power To SucceedFor carbon-free hydrogen to play a significant role in decarbonization, it will need to be produced in large quantities at low cost to compete with hydrocarbons. In a future power system heavily dependent on intermittent renewables, hydrogen will likely find economical use in power storage for grid balancing. However, for an actual hydrogen economy to arise, hydrogen will have to expand into the so-called hard to abate sectors where a large portion of carbon emissions occur. Hydrogen for direct heat in industry, and |
| WoodMac’s Dramatic Plan For A 600% Carbon TaxLast week, several Big Oil companies executives met at CERAWeek by IHS Markit energy conference to discuss, among other things, Strategies for the Energy Transition, Climate & ESG. An overriding theme that emerged from the symposium is that Big Oil considers carbon capture technology as being absolutely necessary in our fight against climate change. Exxon Mobil (NYSE:XOM) and Occidental Petroleum (NYSE:OXY) chiefs have said that the world still needs oil and gas, and governments need to focus on mitigating global warming using technologies |
| We Violence Continues To Plague Colombias Oil IndustryThere has long been an association between petroleum production, political repression, poor governance, and increased internal conflict. For strife-torn oil-dependent Colombia, which is claimed to be Latin Americas longest-running democracy, this is no different. Like South American neighbors Venezuela, Brazil, and Ecuador, black gold became an important economic motor for Colombia with the countrys addiction to petroleum starting in the mid-1980s when it became a net oil exporter. The Andean nations decades-long low-intensity |
| Why Africa Hasnt Kickstarted Its Renewable Energy BoomAfrica has a solar energy potential of as much as 1,000 GW and wind potential of 110 GW, not to mention 350 GW in hydropower potential and 15 GW of geothermal potential. And yet, all this huge potential remains largely untapped, even though solar and wind farms are getting so cheap, they are said to be on par with coal in some parts of the world. The situation will likely be surprising for those who only follow upbeat headlines, but people with some knowledge of how renewables actually work and how businesses in general work will not be surprised |
| More restaurant jobs and the stimulus package foreshadow the industry’s coming recoveryRestaurants and bars gained 286,000 workers in February, the latest sign that the industry’s recovery is on the horizon after a long, cold winter. |
| NBA Commissioner Adam Silver supports new league that pays high schoolers $100,000The NBA boss said the Overtime league is good for basketball and mentioned NBA would pay attention. |
| U.S. hits record daily Covid vaccinations but health officials warn against loosening restrictionsLast week, Arizona, Texas, Alabama, South Carolina, California and Mississippi all relaxed restrictions to varying degrees. |
| GameStop shares jump after retailer taps Chewy’s Ryan Cohen to lead e-commerce shiftShares of GameStop jumped 10% after the company announced it has tapped Chewy founder Ryan Cohen to lead its shift to e-commerce. |
| 5 things to know before the stock market opens MondayU.S. stock futures were mostly lower Monday, with a sharp drop in the Nasdaq and tech shares indicated after Friday’s big turnaround. |
| CDC study finds easing mask and restaurant rules led to more Covid cases and deaths, as some states move to lift restrictionsA new CDC study published on Friday found that local mask requirements and limited dining at restaurants can help reduce the spread of Covid-19. |
| Boeing awards CEO $21 million in total compensation for 2020Boeing’s CEO Dave Calhoun forgoes $3.6 million in compensation. |
| Detroit mayor rejects initial J&J vaccine shipment, saying Pfizer and Moderna are ‘the best’Detroit Mayor Mike Duggan said the city had enough supply of Pfizer and Moderna vaccines to cover demand from eligible residents. |
| VW expects half of U.S. sales to be electric vehicles by 2030Volkswagen is accelerating plans to increase sales of all-electric vehicles globally in the U.S., Europe and China. |
| Virginia gets close to legalizing recreational weed as other states eye cannabis tax windfallsVirginia finalizing its legalization of marijuana, while other states are calling for similar measures. |
| Buffett cut Apple, Baron trimmed Tesla: Billionaire market lessons on tech and growth stock sellingBillionaires Warren Buffett and Ron Baron recently trimmed positions in a few of their favorite stocks, moves which can help investors amid a volatile market. |
| Central banks around the world want to get into digital currencies “here’s whyIntense interest in cryptocurrencies and the Covid-19 pandemic have sparked debate among central banks on whether to issue digital currencies of their own. |
| Okta CEO defends $6.5 billion deal for rival Auth0 after shares fallOkta CEO Todd McKinnon said rival identity management company Auth0 was on a path to go public and that the acquisition would be growth accretive to Okta. |
| Panasonic Moves Into Supply Chain Software With Reported $6.5 Billion Acquisition Of Blue YonderPanasonic Moves Into Supply Chain Software With Reported $6.5 Billion Acquisition Of Blue Yonder Panasonic looks like it is getting into the software and the supply chain business. The 102 year old Japanese electronics company is set to buy U.S. based Blue Yonder – a company that primarily deals in supply chain software – for a reported $6.45 billion (or 700 billion yen, for those of you playing at home in Japan). It not only marks one of the most decisive moves by Panasonic in years, but it’s the company’s largest acquisition since 2011, according to Reuters. Panasonic already had a 20% stake in Blue Yonder which it acquired for 86 billion yen last year. Panasonic also gained a seat on the company’s board, after acquiring the minority stake, last year. The acquisition is in the “final stages” and Panasonic is seeking to acquire the rest of the company from major shareholders, which include Blackstone Group.Â
While Nikkei was fir … |
| Hedge Fund CIO: Jerome Is Unlikely To Be Around For When Everything Comes Crashing DownHedge Fund CIO: Jerome Is Unlikely To Be Around For When Everything Comes Crashing Down By Eric Peters, CIO of One River Asset Management œStarship SN10 landed in one piece! tweeted Elon, his magnificent rocket having returned in one piece, gently set down, a Goldilocks landing. And no sooner had the world’s most inspiring risk taker tweeted in celebration then a methane leak set off a chain reaction, a devastating explosion, an awesome fireball eclipsed only by Musk’s ambition. The starship was sent careening through the air, crashing back, obliterated ” RUD in Musk parlance (Rapid Unplanned Disassembly). œRIP SN10, honorable discharge, he tweeted minutes later, moving on, inspiring entrepreneurs across the globe to boldly pursue their dreams, undeterred by the longest of odds. Stress-testing their creations. Pursuing anti-fragility through the embrace of volatility. œWe think our current policy stance is appropriate, said Fed Chairman Powell nervously, a scent of methane in the air, Treasury yields surging, repo rates jumping to 4.25%, credit ETFs trading at discounts to their net asset values. œIf we do see what we believe is likely a transitory increase in inflation, where longer-term inflation expectations are broadly stable, I expect we will be patient about making any changes to policy, added Powell, without articulating the rising risks of systemwide RUD should longer-term inflation expectations start broadly rising. But Jerome is unlikely to be around for that stage. He will have passed the greatest experiment in monetary history to a successor. And lost in the transition from one Chair … |
| Nasdaq Futures Tumble As Value Surge Makes Europe A Sea Of GreenNasdaq Futures Tumble As Value Surge Makes Europe A Sea Of Green US equity futures and global markets jumped higher at the reopen of Asian trading late on Sunday following news of the Senate’s passage of the Biden $1.9TN stimulus plan and the spike higher in oil following the Houthi drone attack on Aramco facilities in the Gulf, but have since dipped amid renewed reflationary fears which pushed Treasury yields as high as 1.61% overnight hitting tech stocks with lofty valuations even as value stocks and European markets were broadly in the red. After rising above $71, Brent has since faded gains and was last trading near where it closed Friday at $69. Bitcoin soared as HK-based firm the latest institution to convert cash into Ethereum and Bitcoin. At 7:10 a.m. ET, Dow e-minis were down 16 points, or 0.07%, S&P 500 e-minis were down 16.5 points, or 0.44%, and Nasdaq 100 e-minis were down 154.25 points, or 1.20%.
Futures tracking the Nasdaq 100 index sank as much as 2%… |
| Hickman: A Signal To Buy 30-Year BondsHickman: A Signal To Buy 30-Year Bonds Authored by Lance Roberts via RealInvestmentAdvice.com, A technical indicator with a reliable history is signaling that 30-year Treasury yields will soon decline. A relative strength index (RSI) can be measured for any price series and represents how much and frequency gains are occurring versus losses. The index is used as a contrary or turning-point indicator. After periods of strong, persistent selling, buying is expected and vice versa. It isn’t a complicated calculation. The RSI takes the average price change of days with gains compared to the average price change of days with losses over the last x days. This is converted into an oscillator that can take any position between 0 and 100. When prices (or yields) are rising fast and persistently, the oscillator will approach 100; when selling occurs with lower prices, it will approach 0. The oscillator spends most of its time in the middle, say between 30 and 70. Extreme readings (close to 0 or 100) happen rarely. We can study these extremes historically to see how useful the index is at identifying major turning points in markets. The RSI On The 30-year U.S. Treasury Yield For this analysis, I looked at the RSI on 30-year U.S. Treasury yields measured with a 14-day average (the x in the description above). This is the longest and most conservative daily average generally used. I looked at historical times where the RSI equaled or was greater than it was at the close of Wednesday, 2/24/2021, at 78. A reading of 78 (or more) is rare, hap … |
| Fears for 5,000 UK steel jobs as lender nears collapseThe main backer of the UK’s third-largest steelmaker is to go into administration, the BBC has learned. |
| Deliveroo boss Will Shu: ‘I was never into start-ups’Will Shu’s comments come as the food delivery firm sets out flotation plans but reports another loss. |
| BP staff set to work from home two days a weekThe oil giant told staff last month that the new model will start for office-based staff this summer. |
| Why should just boys enjoy the bull run? Females flocking to equities tooData available with a few broking firms suggests there has been a substantial rise in the number of women traders and investors in the last one year. |
| Women, take charge of your finances now: Here’s how!One reason why women often hesitate to take over or manage their investments and finances is that that they feel underconfident and not equipped to deal with these matters. |
| Dispatches from a Pandemic: ‘There is haunting silence’: This is life in Italy, one year after national lockdown to stop the spread of COVID-19‘The presence of increased police patrols in a crowded square in Como on a recent Saturday evening is further evidence of a developing social malaise that needs to be kept in check.’ |
| : Beauty app maker, oil services firm follow Tesla and Microstrategy in pouring millions into cryptocurrenciesPublicly traded companies outside the U.S. are now following Tesla and Microstrategy in buying cryptocurrencies. |
| : Amazon-backed Deliveroo gets ready to test a red-hot global IPO marketThe IPO is expected to value Deliveroo at around $7 billion and will be the largest listing on the LSE in three years. |
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