12May2021 Pre-Market Commentary: Oil Prices Bolstered By Crude Inventory Draw, WTI Crude Up To 66.06, US Dollar Higher 90.33, DOW Down 90 Points, Nasdaq Down 1.1%, Dogecoin $0.49

Written by Gary

US Core Consumer Prices Explode Higher At Fastest Pace Since 1981 (SPY -0.7%). Data shows inflation running hotter than expected as consumer prices leap 4.2%.

Here is the current market situation from CNN Money
	European markets are mixed. The DAX is higher by 0.06%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.43% and 0.07% respectively.

What Is Moving the Markets

Here are the headlines moving the markets.
	3 Stocks That Could Win Big From Bidens $2 Trillion Infrastructure Plan After pouring trillions of dollars into the economy over the past 6 months, Biden’s new plan could further light the fuse on the EV markets. That’s because his proposed $2 trillion infrastructure bill is expected to cover much more than just roads and bridges. Under the current proposal, $174 billion would go directly to the EV sector, helping the United States finally cut into Chinas massive lead in this booming industry. Today, only about 2 percent of all new cars in the U.S. run on electricity. But with Biden’s new plan, the auto industry
	Iran’s Return To Oil Markets Is Imminent Following talks in Vienna this month, the U.S. could announce a deal with Iran as early as the end of May, which could lead to the lifting of oil and energy sanctions. Analysts are predicting a return to pre-pandemic oil production levels for Iran, around 3.9 million bpd, by 2022, assuming that the U.S. eases the sanctions that have been suffocating Irans economy. Production levels in March stood at around 2.3 million bpd, the highest level since May 2019, an increase that highlights how Irans oil exports have already been recovering
	Is The Global Oil Industry Relying Too Much On China? Chinese oil imports are among the closest watched indicators for global oil demand trends in the world. Thats despite the fact there are things like seasonal factors affecting the countrys demand for oil and price considerations. The dominant narrative remains that if China is buying, all is well for oil, and prices will go up. If China is reducing its buying, the outlook immediately dims. However, recently things have not been so clear-cut, as Reuters columnist Clyde Russell wrote this week. Chinas oil imports in April,
	Middle East Oil Producers Race To Pump Crude And Sell Assets Within the last month, Saudi Arabias state oil giant Aramco has announced the sale of a minoritybut largestake in its pipeline business, the possibility to sell another 1 percent of its stock, and intentions to put up for sale stakes in some oil fields. Neighbor, ally, and fellow OPEC member UAE in the meantime, has announced plans to list its state oil firms drilling business and has launched its own oil futures in a bid to change the face of Middle Eastern oil. There is a certain feeling that both Saudi Arabia and
	Oil Prices Bolstered By Crude Inventory Draw The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 2.533 million barrels for the week ending May 7. Analysts had predicted a draw of 2.817 million barrels for the week. In the previous week, the API reported a massive draw in oil inventories of 7.688 million barrels after analysts had predicted a draw of 2.346 million barrels. Since the start of 2020, crude oil inventories have grown by more than 50 million barrels, according to API data. Oil prices were trading up on the day prior to the data release
	Can Libyas Oil Industry Make A Comeback In 2021? The creation of Libyas interim government has instilled the international community with tacit hopes of a decade-long conflict finally coming to an end. As it is oftentimes the case with Libya, aspirations remain alive only insofar as they are not accompanied by deadlines to be met. The interim government has a little less than 2 months to create the constitutional basis for the Libyas first democratic elections of this century (assumed to take place in December 2021). The complete unpredictability of what is going to
	Five things to know before CDC panel votes on Pfizer’s vaccine for use in adolescents States could begin administering shots in adolescents on Thursday, pending an endorsement from the CDC’s Advisory Committee on Immunization Practices.
	‘Not all airlines are created equal’: Two stock traders give their favorite picks Airline stocks are losing altitude amid fuel shortage concerns, but two traders see selective buying opportunities.
	‘A huge moment’: U.S. gives go-ahead for its first major offshore wind farm Vineyard Wind 1 project will be located in waters off the coast of Massachusetts.
	EU upgrades economic forecasts as vaccination campaign gathers pace The European Commission presented on Wednesday a more upbeat assessment of how the 27 economies will perform this year.
	India hits another grim record as WHO says it accounted for half of last week’s reported cases The World Health Organization said India accounted for half of all cases reported globally last week as well as 30% of global deaths.
	As India resists calls for a national lockdown, one economist says states should decide Prime Minister Narendra Modi is under pressure to call for another nationwide lockdown in India as new Covid cases soar to record highs daily.
	4 steps to take to achieve socially responsible investment goals, according to a consultant With sustainable investments becoming an increasing part of the international agenda, pressure is piling on businesses to ensure they have a strategy in place.
	‘CDC’s credibility is eroding’ amid conflicting mask guidance, ex-Obama official says Dr. Kavita Patel explains why the Centers for Disease Control and Prevention’s credibility is eroding.
	J2 Global CEO says Consensus spinoff will unlock value in cloud fax and digital media businesses Digital media company J2 Global wants to spinoff its cloud fax service under a new publicly traded company called Consensus to unlock value in both businesses.
	Abbott’s CEO says it has a team of ‘virus hunters’ to stay on top of new Covid variants Abbott Labs has “virus hunters” working to monitor Covid variants, as some mutations show an ability to evade detection, CEO Robert Ford said.
	‘Shark Tank’ host Kevin O’Leary: Psychedelic drugs ‘far exceed’ cannabis investment potential “Shark Tank” co-host Kevin O’Leary has multiple psychedelic drug company investments citing “incredible potential” compared to recreational cannabis.
	Kentucky Derby winner Medina Spirit cleared to enter Preakness despite failed drug test Kentucky Derby winner Medina Spirit was allowed to enter the Preakness Stakes, with conditions, despite failing a drug test after the first Triple Crown leg.
	Ex-UAW president sentenced to 21 months in prison in union corruption scheme Former UAW President Dennis Williams was sentenced to 21 months in prison for his involvement in embezzling hundreds of thousands of dollars in union funds.
	US Core Consumer Prices Explode Higher At Fastest Pace Since 1981 US Core Consumer Prices Explode Higher At Fastest Pace Since 1981 After March’s blowout 0.6% MoM surge in headline CPI, analysts expected a modest slowdown MoM, but surge YoY due to the base-effect comps from April 2020’s collapse. However, it appears analyst massively underestimated as headline CPI surged 0.8% MoM (4 times the +0.2% expected) and exploded 4.2% YoY. That is the biggest YoY jump since Sept 2008 (and biggest MoM jump since June 2008) Source: Bloomberg Core CPI was expected to rise by the most this millennia, but it was hotter than that. The index for all items less food and energy rose 3.0% over the past 12 months; this was its largest 12-month increase since January 1996… and the MoM jump of 0.92% is the biggest since 1981
	Tech Wreck Goes Global – Taiwan Stocks Trounced In Biggest Crash In 54 Year History Tech Wreck Goes Global – Taiwan Stocks Trounced In Biggest Crash In 54 Year History Just when you thought it was safe to BTFD in tech stocks (after yesterday’s “do you believe in miracles” rebound in US equity markets), the tech-heavy $2 trillion market cap Taiwan Stock Exchange Index crashed almost 9% overnight – its largest single-day drop in the exchange’s 54-year history. Source: Bloomberg The deepeningÂ slumpÂ in global tech shares was clearly a focus for traders given the Taiwanese market is dominated by the industry, but, as Bloomberg notes, the swiftness of the plunge that followed suggests bigger forces were at play. For months, bull market skeptics around the world have warned that surging leverage is making equity markets riskier (e.g., US margin debt topped $822 billion by the end of March, up 72% year on year). And, as Bloomberg reports, on a smaller scale, the same happened in Taiwan. Amid global central bank-backed complacency, investors took on increasing amounts of leverage. The result was a 46% expansion inÂ margin debtÂ …
	Rabo: Please Don’t Make Us Look At The Inflation Rabo: Please Don’t Make Us Look At The Inflation By Michael Every of Rabobank Markets continue to reel: œRisk crumbles , says Bloomberg. Why? Because there is a plaintive plea from everyone from the Fed and the Treasury down to simple peddlers of exotic derivatives: please don’t make us look at the inflation! Yes, it’s US inflation-data day – and nobody wants to see any. If there is an upside surprise in CPI, to reflect the surges in the prices of so much around us, it will embarrass the Fed, and the US Dollar, and Yellen, and many others. Some pre-emptive positioning may already be underway: the White House said Tuesday it takes œthe possibility of inflation seriously , or should that have been œserious inflation is possible? ; and the Fed’s Bullard added the US will see inflation in 2021 and some will œhang on in 2022. Is that still transitory? China’s PPI surprised to the upside, which may prove a worrying harbinger: and, anecdotally, prices for shippin …
	Futures Slide With All Eyes On “Big Jump” In CPI Futures Slide With All Eyes On “Big Jump” In CPI US equity futures continued their slide, and a sell-off in global shares extended to its longest losing streak in two months on Wednesday as investors awaited the latest inflation figures to assess the risk that soaring prices will snuff a recovery in the world’s biggest economy, prompting bets on earlier interest rate hikes and higher bond yields. At 7:15am Dow e-minis were down 136 points, or 0.4%, S&P 500 e-minis were down 17 points, or 0.42%, Nasdaq 100 e-minis were down 84 points, or 0.62% while futures tracking the small-cap Russell 2000 index dropped 1%. The dollar advanced with Treasuries. Notable pre-market movers included: FAAMG mega-caps – Facebook, Amazon.com, Apple, Google and Microsoft – which all fell between 0.4% and 0.9%. Streaming platform FuboTV surged 20% after it raised its full-year revenue and subscription forecasts. Electronic Arts Inc inched up 1.2% as it forecast annual adjusted revenue above analysts’ estimates, betting that demand for its titles like œ …
	UK economy picks up as lockdown restrictions ease The UK economy shrank by 1.5% in the first three months of 2021, but picked up speed in March.
	Renters seize on lower costs to live in UK cities The cost of renting in some UK cities – particularly London – has fallen prompting a rise in demand.
	Tui and EasyJet to offer holidays in amber countries It comes after the Foreign Office changed its designation for a number of destinations still listed as amber.
	Digital coin ether hits record high as 2021 gains near 500% Ether has jumped almost 500% against the dollar this year as the ethereum blockchain becomes more widely used by peer-to-peer – or decentralised – cryptocurrency platforms that enable crypto-denominated lending outside of traditional banking institutions.
	Godrej Consumer jumps most in Asia as it hires CEO from Unilever œGodrej has underperformed most of its peers in the past few years, which may change as the new leader brings in a new strategy that may entail some hard decisions, Vivek Maheshwari, an analyst at Jefferies India Pvt., wrote in a note.
	US data tonight may address Wall Street’s inflation jitters, stall tech rout Analysts said the US Fed’s underestimating inflation pressure may be real. But whether the Fed will take drastic measures to rein in it will depend on the US jobs market, which still remains fragile.
	Capitol Report: Biden to meet with McConnell, McCarthy as he presses big spending plans President Joe Biden on Wednesday is due to sit down with the top four congressional leaders, as the Democratic president ramps up a push for infrastructure and other domestic spending that has so far failed to gain Republican support.
	Capitol Report: House Republicans poised to oust Liz Cheney from leadership post House Republicans look set to vote Wednesday in favor of ejecting Rep. Liz Cheney of Wyoming from her leadership role, in a move that has been in the works for weeks following her criticism of former President Donald Trump.
	: VMware names Raghu Raghuram next CEO, preannounces upbeat earnings VMware Inc. named a new chief executive Wednesday while also delivering better-than-expected preliminary results for its fiscal first quarter.