Written by Gary
Stocks continue to claw back the week’s losses and dollar weakens after retail sales data (SPY +0.6%). Chip shortage is battering the auto industry and will cost $110 billion in revenue.
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 Strong Oil And Gas Stocks For The SummerFor years, searching for potentially rewarding oil and gas stocks during the ongoing energy crisis has pretty much felt like dumpster diving. The energy sector has been deeply out of favor over the past few years, with the Covid-19 pandemic only serving to make an already bad situation much worse. But the worst appears to be in the rearview mirror as the energy sector continues to stage an impressive rebound as the global economy recovers from the ravages of the pandemic. The energy sector is just coming off a bumper earnings season whereby |
| Biden’s $2.5 Trillion Infrastructure Plan Could Send These EV Stocks SoaringA massive $2.5-trillion infrastructure plan could send EV companies–and many of their tie-ins–to record new heights.And some investors are getting ready to pile in like never before as the green tidal wave prepares to reach tsunami proportions.Theyre already on the move and tie-in stocks, companies that are related to the EV industry like Facedrive (TSXV:FD; OTC:FDVRF), the original EV ride-share platform and the new owner of EV car subscription services company Steer, are aiming to ride the green tidal |
| Senator Introduces Bill To Compensate Oil-States During Energy TransitionA Democratic Senator introduced a bill on Thursday designed to give states financial support to compensate for the losses oil and gas states will incur as a result of the energy transition. The funds, the new bill proposes, will provide federal support to the states that heavily rely on oil and gas revenues to fill budget gaps as oil and gas production would theoretically decline. The act, referred to as The Schools and State Budgets Certainty Act, was proposed by Democratic Senator Martin Heinrich of New Mexico and will offer what it calls energy |
| The ESG Bubble Has Finally BurstBack in January, we warned that the green energy sector was in danger of overheating after massive runups by clean energy stocks in 2020. The momentum remained strong early in the year after Joe Biden ascended into the Oval Office in hopes that his ambitious clean energy plan would be a tailwind for investors in the so-called sustainable or ESG funds. It was not long, however, before cracks began to appear in the clean energy bull camp. After emerging as the hottest corner in the clean energy universe in 2020, solar stocks began to let off steam |
| Will Big Oil Become Big Energy? Unlikely Says An ExpertDespite their lofty green energy goals, Big Oil majors are unlikely to become Big Renewable Energy, at least according to an International Energy Agency official who was among the authors of the agencys Renewable Energy Market Update. Big Oil has been very vocal about its renewable energy goals. It has also been quite actively expanding in the area through acquisitions and participation in various renewable energy tenders. Still, the IEAs Heymi Bahar believes this wont make them major players in the solar and wind power generation |
| BP Shareholders Reject Emission-Cutting ResolutionThe majority of BP shareholders voted against a resolution filed by Dutch activist investor group Follow This that demanded the supermajor increase its emissions-cutting commitments. Some 80 percent voted against the resolution. Follow This and others noted, however, that the 20.7 percent that did vote in favor of the new targets was double the support that a similar resolution received last year. Once again, responsible investors have given a clear signal to the Board of BP, said Follow This Mark van Baal, who filed the resolution. |
| Shirley Chung of ‘Top Chef’ pivoted her business and became a voice against anti-Asian hateAfter hearing about anti-Asian hate crimes and experiencing racism at her own restaurant, “Top Chef” finalist Shirley Chung felt a need to speak out. |
| How a chip shortage is battering the automotive industryA shortage of semiconductors is inflicting pain on the automotive industry, forcing companies to cut production and leaving dealers with reduced inventory. |
| Greece’s glittering holiday islands reemerge from the shadow of coronavirus lockdownsThe Greek government has a message to lure mainly northern Europeans, who are desperate for some warmer weather and a holiday: “All you want is Greece.” |
| UK prepares surge vaccinations to tackle Covid variant from IndiaThe U.K. is preparing to deliver surge vaccinations and testing in areas where the new Covid-19 variant first detected in India is spreading. |
| India reports more than 343,000 new cases as one professor claims infection may have peakedGovernment data released Friday showed there were 343,144 new reported cases over a 24-hour period, where at least 4,000 people died. |
| Ireland wants pandemic-era remote working to revive its rural townsA long-standing challenge for rural Ireland has been the migration to urban areas. |
| Brazil braces for renewed Covid surge as Bolsonaro faces parliamentary inquiry over pandemic responseBrazil, previously renowned for demonstrating leadership during health crises, has become an international pariah during the coronavirus pandemic. |
| Singapore stocks slump as Covid restrictions tighten, travel bubble with Hong Kong likely delayedSingapore’s government said Friday it’s “very likely” that the air travel bubble with Hong Kong will not begin on May 26 as planned. |
| Chip shortage expected to cost auto industry $110 billion in revenue in 2021The estimate is up 81.5% from an initial forecast of $60.6 billion from consulting firm AlixPartners in January. |
| Sonos CEO expects to capitalize on the ‘golden age of audio’ to sell more home entertainment equipmentThanks to growth in video, music and podcast streaming audiences, Sonos CEO Patrick Spence sees an opportunity to sell more home entertainment equipment. |
| New CDC mask guidelines acknowledge that ‘vaccinated people can go back to normal,’ says doctorDr. Ashish Jha explains the significance of the CDC’s latest update to its masking guidelines. |
| Coinbase CFO on crypto investors, dogecoin and growing competitionIn a wide-ranging interview on CNBC, Coinbase CFO Alesia Haas spoke with Jim Cramer about the adoption of crypto currencies and volatility in digital coins. |
| The lockdown trade is dead on new CDC mask guidance, says Jim Cramer“The CDC’s new guidance also means you’re going to get clobbered if you keep owning the lockdown stocks,” the “Mad Money” host said. |
| John Authers: Watching For “Unrest” Over EM Food Prices And Whether Elon Musk Has “Jumped The Shark”John Authers: Watching For “Unrest” Over EM Food Prices And Whether Elon Musk Has “Jumped The Shark” Among the difficulties of entering uncharted macroeconomic territory, where daily “transitory” changes cause wild volatility in all corners of the market, is documenting key themes as they emerge. One of the better analyses of the current market environment that we have read has come from Bloomberg Opinion writer John Authers. In a piece published on Friday, Authers lays out two key market themes heading into the end of Q2: The developing problem of inflation, especially as it relates to the cost of food, in emerging markets. How Elon Musk has, alongside of all of his devotees and disciples, placed himself firmly on the wrongside of what could be a serious coming market correction. Rising Food Prices In Emerging Markets Could Eventually Lead To Civil Unrest First, Authers points out the obvious: commodity prices have blown through the roof. Producer price inflation came in at “its highest in four decades, bar a brief peak in the summer of 2008,” he notes of this week’s data. |
| Futures, Global Markets Storm Higher As Inflation Fears Fade AwayFutures, Global Markets Storm Higher As Inflation Fears Fade Away US index futures rose with for a second day alongside global markets as a continued drop in commodity prices helped ease fears about inflation risks. Treasuries advanced, cryptocurrencies rebounded from a Thursday rout while the dollar slumped. After a bruising week that saw the biggest one day drop for the S&P since February, higher S&P 500 and Nasdaq 100 contracts signaled a market recovery was gaining momentum. The three main U.S. stock indexes snapped a three-day losing streak on Thursday after better-than-expected weekly jobless claims data while ignoring the highest annual PPI increase on record. At 7:15a.m. ET, Dow e-minis were up 150 points, or 0.44%, S&P 500 e-minis were up 26 points, or 0.63%, and Nasdaq 100 e-minis were up 132 points, or 1.00%.
As Bloomberg notes, markets are regaining their equilibrium at the end of their biggest retreat in 11 weeks, with the focus of the benefits of an economic rebound overriding worry about the negative side-effect of inflation, for now … |
| Yankees Suffer COVID Resurgence As 8 Fully-Vaccinated Players, Staff Test PositiveYankees Suffer COVID Resurgence As 8 Fully-Vaccinated Players, Staff Test Positive In an unsettling reminder that COVID-19 is still spreading, even as a scandal-scarred Gov. Andrew Cuomo pushes ahead with reopening the Empire State – and even as practically everybody in the organization has already been vaccinated – the Yankees have seen their starting lineup crippled (shortstop Gleyber Torres was kept out of Wednesday’s starting lineup during a game against Tampa Bay) and a number of coaches and staff sidelined due to a sudden flareup of COVID-19. But the surprising thing is that the Yankees have essentially required players and staff to get vaccinated, so this latest outbreak is afflicting staff and players who have already been fully vaccinated.
The Yankees – which, like the Mets, are reportedly planning to segregate fans in to “vaccinated” and “unvaccinated” sections – have tested all players and staff at least three times since Tuesday. Manager Aaron Boone shared more information on the situation inside the team on Wednesday in a COVID-themed update that sounded like an unwelcome relic from last seas … |
| The ‘Take This Job And Shove It’ RecessionThe ‘Take This Job And Shove It’ Recession Authored by Charles Hugh Smith via OfTwoMinds blog, So hey there Corporate America, the Fed and your neofeudal cronies: take this job and shove it. This time it really is different, but not in the way the Wall Street shucksters are claiming.
Conventional economists, politicos and pundits are completely clueless about the unraveling that’s gathering momentum beneath the superficial surface of “reflation” because they don’t yet grasp we’re entering an unprecedented new type of recession: a ‘Take This Job and Shove It’ recession which is unlike any previous downturn. Long-time readers know I’ve addressed the emergent class structure and systemic decay of the socio-economic order for many years. Just as a quick refresher, here are a few of the dozens of essays I’ve written on these topics: America’s Nine … |
| British tourists allowed into Portugal from MondayThe government in Lisbon says anyone arriving will need to take a negative PCR test before departure. |
| Gupta empire facing UK fraud probe over GreensillThe group run by Liberty Steel owner Sanjeev Gupta is under investigation by the Serious Fraud Office. |
| Cleared postmaster hid conviction from his familyThe convictions of two more former Post Office branch managers – wrongly accused of theft – have been quashed. |
| Desi fund managers junk domestic themes, shift to export plays amid Covid-19The lockdowns by states to control the spread of the virus has resulted in trimming down growth expectations for the economy, which was earlier pegged to be the fastest growing large economy in 2021. |
| Commodity bull run turns zombie company stock a multibaggerThe stock, which traded at Rs 2.71 in November 2020, is now valued at Rs 18.45. It hit the 2 per cent upper circuit placed on the counter on Friday, and traded at a 52-week high. |
| Suddenly, some analysts turn sceptical on Damani’s DMart, cut price targetsThe food and grocery retailer, which runs the DMart chain of stores, bounced back in the second half of last financial year after a major hit from the Covid-19 lockdown in the first. |
| Metals Stocks: Gold prices rise, head for weekly gain above $1,800Gold prices head for a second straight gain for the day and week, as bullion extended its bounce from its lowest intraday price in a week which had been prompted by rising bond yields and a higher U.S. dollar as jitters around rising inflation rose. |
| Sustainable Investing: These under-the-radar stocks fight climate change by reducing carbon emissionsThis sector causes 38% of global greenhouse gas emissions. |
| Futures Movers: Oil prices bounce as Colonial Pipeline reopensOil futures rise Friday, taking back a chunk of the previous session’s tumble, as a key fuel pipeline reopened after a closure that sparked gasoline shortages across the southeastern U.S. |
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