Written by Gary
Semiconductor shortage hits Ford Bronco SUV, Ranger pickup production (SPY +0.03%). Commodity chaos continues, stocks refuse to bounce after Janet’s jolt.
The Market in Perspective
Here are the headlines moving the markets. | |
Saudi Aramco Needs More Than Just Strong EarningsSaudi Arabias national oil company Aramco has again outperformed forecasts. The worlds largest oil company, and 2nd largest listed company, reported a free cash flow of $18.3 billion in Q1 2021, a 30% increase from Q1 2020. At the same time, Aramco stated that it will maintain its dividend, with $18.8 billion due to be paid out in both the first and second quarter. The comparison with 2020 is, of course, a bit lopsided, as the oil market was suffering massive global demand destruction during that time period due to COVID and a major | |
The Shocking Truth About Data Center Energy ConsumptionIts almost impossible to qualify, much less quantify, the amount of disruption and destruction the spread of the novel coronavirus caused to the global economy. One of the many side effects of the pandemic was to push the world even further into the digital age as more and more of our work and social lives have shifted from the physical world to cyberspace. More of us are spending more time online than ever, and this means that the amount of computing power being used around the world is exploding. This is especially true as Big Data becomes | |
Biden Could Subsidize Nuclear Power To Reach U.S. Climate GoalsThe U.S. Administration has reportedly realized that America cannot reach its new ambitious emission-reduction goals without nuclear power generation. The White House has signaled it could create new subsidies to support nuclear plants, Reuters reported on Wednesday, quoting sources with knowledge of ongoing private talks. U.S. President Joe Biden unveiled last month a new emissions-reduction target aiming to cut greenhouse gas emissions. As part of the new U.S. Nationally Determined Contribution (NDC) for the Paris Agreement, which President Biden | |
Mozambique Delays Could Disrupt Global LNG MarketThe global liquefied natural gas (LNG) market, which was set to be constantly loose in the second part of this decade, is instead set to get tighter and could even see annual supply deficits as a result of likely delays in the development of LNG projects in Mozambique due to the countrys worsening security situation, a Rystad Energy report reveals. Mozambique was once poised to catapult into the upper ranks of global LNG producers by the middle of this decade, but Totals recent force majeure declaration signals indefinite delays on | |
Suspected Islamic State Militants Blow Up Oil Wells In Northern IraqSuspected Islamic State militants blew up two oil wells with bombs near the northern Iraqi city of Kirkuk on Wednesday, killing at least one security officer and setting the oil wells ablaze. The oil wells that came under attack were in the Bai Hassan oilfield. Crude oil production in OPECs second-largest oil producer has not been affected by todays attack, industry sources told Reuters. According to a security official who spoke to AFP, Islamic State group assailants killed a policeman and injured two others, UrduPoint | |
Saudis Set To Cut Oil Prices To Asia For First Time This YearSaudi Arabia is likely to reduce the price of its crude oil for Asia in June in what will be the Kingdoms first price cut this year amid signs of declining demand in India and weakening Dubai benchmark, according to a Reuters survey of Asian refiners. Saudi Arabia, the worlds largest oil exporter, is expected to cut its official selling price (OSP) for the flagship Arab Light grade for Asia in June by an average of $0.28 per barrel, according to sources at Asian refiners Reuters has polled. The expected price cut, if it materializes, | |
Bill and Melinda Gates apparently had no prenup. Here’s why you should consider one, ultra-wealthy or notIf you’re going to get married, it can be worth considering how you and your spouse would each protect your financial interests in case you split up. | |
U.S. backs waiving patent protections for Covid vaccines, citing global health crisisThe Biden administration announced Wednesday that it supports waiving intellectual property protections for Covid-19 vaccines. | |
Semiconductor shortage hits Ford Bronco SUV, Ranger pickup productionThe downtime will not impact Ford’s plan to begin delivering the vehicles to dealers this summer, according to a company spokeswoman. | |
Broadway to reopen at full capacity in New York City on Sept. 14New York Gov. Andrew Cuomo said Wednesday that Broadway theaters will reopen just after Labor Day at full capacity. | |
GM expects to offer personal self-driving vehicles to consumers this decadeCEO Mary Barra’s comments come after GM showcased a personal autonomous vehicle concept car for its Cadillac brand in January. | |
Fauci says studies show people who have had Covid and get vaccinated may have more protection against variantsStudies provide more evidence on the benefits of getting vaccinated, Fauci said. | |
Jeff Bezos’ Blue Origin to launch first space tourism passengers on July 20 and auction off a seatJeff Bezos’ space venture Blue Origin on Wednesday announced the first passenger flight for its New Shepard tourism rocket will be July 20. | |
Hard-hit restaurants rush for a lifeline as $28 billion in grants go up for grabsThe National Restaurant Association estimates that from March 2020 through April of this year 110,000 restaurants have closed either permanently or long-term. | |
Boeing beefs up business to convert old 737 passenger planes into cargo jetsBoeing inked a partnership with a Costa Rica-based company to convert old 737 planes into cargo jets. | |
CDC projects a surge in U.S. Covid cases through May due to variants before vaccinations drive a ‘sharp decline’While Covid cases are expected to increase this month, hospitalizations and deaths will likely remain low nationally, the U.S. agency said. | |
KFC looks to hire 20,000 workers as restaurant industry faces labor crunchKFC on Wednesday announced it is looking to hire 20,000 workers as the restaurant industry struggles to find enough labor to meet returning demand. | |
Cramer says he sold some ether after record highs to put toward an all-electric Hummer“I sold half my Ethereum yesterday … and I put some money down to own a Hummer,” CNBC’s Jim Cramer said Wednesday. | |
Commodity Chaos Continues, Stocks Refuse To Bounce After Janet’s JoltCommodity Chaos Continues, Stocks Refuse To Bounce After Janet’s Jolt While bonds, crypto, and the dollar largely trod water today, Commodities rose for a record 16th straight day today… Source: Bloomberg That is the highest for that index since July 2015… Source: Bloomberg After Janet Yellen shit the bed yesterday, today’s bounce was barely noticeable (and non-existent in most cases)… | |
US Space Command Closely Tracking Large Chinese Rocket’s Out-Of-Control Fall To EarthUS Space Command Closely Tracking Large Chinese Rocket’s Out-Of-Control Fall To Earth The Pentagon and US Space Command are said to be tracking a large Chinese rocket which is set to reenter Earth’s atmosphere at some point this coming weekend, likely “around May 8th” according to the latest DoD statement. Crucially, the concern is that the falling rocket’s debris could land on inhabited places and pose a danger to people below, given that it is among the largest ever launces to make an uncontrolled and high speed re-entry into earth’s atmosphere. It’s also the Chinese Long March 5B rocket’s size – at 30 meters in length and weighing 22 tons – that poses the likelihood that an immense amount of debris could fall down to Earth’s surface as opposed to be being burned up upon re-entry, as is typical with smaller rockets. US Defense Department spokesman Mike Howard issued to following details in a Tuesday statement:
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Stocks Tumble As White House Backs WTO Plan To Waive IP Protections For COVID VaccinesStocks Tumble As White House Backs WTO Plan To Waive IP Protections For COVID Vaccines In a major rebuke to the west’s biggest vaccine makers (including Pfizer, Moderna and J&J), President Joe Biden has decided to break with the Bill Gates-backed status quo and support a WTO initiative to make COVID-19 vaccine intellectual property open to all. Biden’s top trade representative Katherine Tai, the administration’s point person on the waiver issue, told Bloomberg in an interview Wednesday that the White House has decided to back the waiver. As a result, the Biden White House will now actively seek to convince other WTO members to back the proposal, an issue that will take time and “not be easy.”
US stocks pulled back on the news, with the tech-heavy Nasdaq leading the selloff, as support for the WTO waiver proposal sponsored by India and South Africa would likely help accelerate the pace … | |
New US COVID Cases Tumble Despite 25% Drop In Daily VaccinationsNew US COVID Cases Tumble Despite 25% Drop In Daily Vaccinations Following almost two months of roughly flat-lining new Covid cases in the US, we are now again seeing clear signs of new improvement despite a notable slowdown in covid immunizations. In recent days, many in the administration and its media propaganda arm, have tried to spook the broader population with scary stories that the recent pace of vaccinations will slow down sufficiently to prevent herd immunity from being reached, hoping to force any holdouts to get vaccinated. As a reference, as of Monday, the US population has received ~246M vaccines, or ~45% of the doses needed for full vaccination of the entire 12+ yo population (assuming two doses are needed for full vaccination). Here are the facts: as Morgan Stanley notes, since the J&J pause (which has since been reversed), 7-day average daily vaccinations have declined by ~26% (3.4M to 2.5M). However, it’s not all just J&J: as Morgan Stanley’s Matthew Harrison notes next, along with the decrease in the rate of J&J vaccine administration starting on April 13th, the administration rate of the oth … | |
Peloton recalls treadmills after child’s deathHome fitness equipment firm recalls Tread and Tread+ machines after six-year-old child pulled under treadmill. | |
Google boss emails staff detailing return to officeIn an email, chief executive Sundar Pichai suggests working three days in the office is the way forward. | |
Goldman Sachs tells bankers to return to office in JuneStaff are being encouraged to return to office-based working when Covid restrictions are lifted. | |
Trade setup: Nifty has key support at 14,500 and 14,440 levels; avoid high leveraged positionsThursday is likely to see a quiet start to the day. The levels of 14,650 and 14,720 are expected to act as resistance points; the supports will come in at 14,500 and 14,440 levels. | |
Meme-based cryptocurrency Dogecoin soars 40% to all-time highDogecoin, launched as a satirical critique of 2013’s cryptocurrency frenzy, has climbed 41% in the last 24 hours to a record $0.68, according to CoinMarketCap. | |
Biden’s Fed choices add uncertainty for inflation-wary investorsChair Jerome Powell and vice-chairs Richard Clarida and Randal Quarles could all potentially be replaced in the coming year, depending on how much President Joe Biden wants to reshape its leadership. And while Fed chairs always matter, the choice right now is even more critical. | |
April 2021 ISM and Markit Services Surveys Remain Well Into ExpansionWritten by Steven Hansen The ISM declined but remained in expansion whilst the Markit PMI improved and advanced further into expansion. | |
Bond Report: Treasury yields tilt lower as bond market remains unmoved by U.S. economic dataU.S. Treasury yields edge lower on Wednesday as investors shrugged off additional evidence of the economic recovery, underlining the bond market’s recent resilience to reflation fears. | |
: Jeep and Maserati maker Stellantis warns of worsening chip shortageA fire at a Renesas Electronics plant in Japan, as well as serious outages in Texas after the storms in March, have exacerbated the tensions on the global semiconductor market, and new problems are appearing. | |
In One Chart: Why trouble may loom for stock market if Cathie Wood’s ARK Innovation ETF fails to bounceCathie Wood’s ARK Innovation exchange-traded fund is significantly oversold and due for a bounce, but if it doesn’t come the popular fund risks suffering a œwaterfall decline, says one chart watcher. |
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