03Jun2021 Pre-Market Commentary: Futures Dump As Meme Stock Mania Goes Into Overdrive, DOW Down 183 Points, Nasdaq Down 0.9%, WTI Crude 68.95, ADP Employment Grew 978,000

Written by Gary

Unemployment claims fall below 400,000 for the first time during the pandemic (SPY -0.6%). Larger than expected crude draw fuels oil price rally.

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.
	Climate Revolt Against Big Oil May Lead To Surge In Crude Prices The surge in climate activism demanding that Big Oil drastically cut emissions and shift strategies to investment in low-carbon energy instead of oil and gas could result in a surge in oil prices in the not-too-distant future. As much as environmentalists and activist shareholders want the major international oil firms to slash upstream investment further, the worlds energy system is not ready yet to deprive itself of the oil and gas resources that Big Oil is exploring and developing. As it stands, 80 percent of global energy is still being
	Hedge Funds Grow More Bullish On U.S. Crude Oil Money managers reduced their bullish bets on the six most important petroleum contracts, but they bought more WTI Crude futures in the week to May 25 amid strong fundamentals for the U.S. benchmark, according to exchange data compiled by Reuters market analyst John Kemp. In the latest reporting week, hedge funds and other portfolio managers sold the equivalent of 8 million barrels in the six most important petroleum contracts, marking the third week of an overall reduction in the net long positionthe difference between bullish and bearish
	Russias LNG Boom Hinges On Foreign Tech Living the seventh year of sectoral sanctions that target its prospective oil and gas projects, Russia has grown accustomed to living under pressure. Sanctions have made it much more difficult to lend money, more difficult to secure viable partnerships and get access to state-of-the-art technologies. Going beyond the day-to-day challenges, there is one thing that has been missing from Russias portfolio a breakthrough within its import substitution drive. Developing and commissioning its own liquefaction technology might have been
	Can Australia Satisfy Teslas Appetite For Battery Metals? Electric cars giant Tesla (NASDAQ: TSLA) said it expects to soon begin buying more than $1 billion a year of Australian lithium, nickel and other critical minerals for its batteries and engines. Chairman Robyn Denholm said the country has taken important steps towards cleaning its image of polluting commodities exporter and it is poised to become a globally significant supplier of climate change solutions. Australia has the minerals to power the renewable energy age throughout the world in the coming years, Denholm, an Australian,
	Larger Than Expected Crude Draw Fuels Oil Price Rally The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 5.36-million barrels for the week ending May 28. Analysts had predicted a draw of 2.114 million barrels for the week. In the previous week, the API reported a draw in oil inventories of 439,000 barrels after analysts had predicted a draw of 1.050 million barrels. Since the start of 2020, crude oil inventories have grown by more than 46 million barrels, according to API data. Oil prices were trading up on Wednesday afternoon, on bullish signals from OPEC
	Multinational Majors Announce Billion-Dollar Investment In Brazilian Oil Field Brazil thinks it can do it all as it refuses to curb fossil fuel production, despite IEA warnings, while expecting to still meet environmental goals. Meanwhile, Equinor, ExxonMobil, and Petrogal Brasil agree on the huge phase one development of Brazils Bacalhau oil field. This week, Norways Equinor, ExxonMobil, and Petrogal Brasil have announced an $8 billion phase one development of Brazil’s Bacalhau oil discovery. The former two oil majors have a 40 percent stake each in Bacalhau, with Petrogal holding 20 percent. The Bacalhau
	Over 15 Million Americans Remain On Government Dole, Despite Record Job Openings Over 15 Million Americans Remain On Government Dole, Despite Record Job Openings The number of Americans filing for first time jobless benefits fell to 385k last week – the lowest since the start of the government-policy-driven lockdowns last year (below 400k for the first time since March 2020)… Source: Bloomberg Pennsylvania, Illinois, and California saw the biggest jumps in initial claims while Texas, Florida, and Oregon saw the biggest drops… The number of Americans on con …
	JBS Reopens All Meat Plants Thursday As Crisis AvertedÂ JBS Reopens All Meat Plants Thursday As Crisis AvertedÂ Meat shortage averted?Â JBS SA, the world’s largest meat producer,Â announced: “they are on schedule to resume production at all of their facilities on Thursday.”Â Employees began returning to JBS’ shuttered meat plants on Wednesday, a day after the company’s beef operations wereÂ haltedÂ across the country following a ransomware attack over the weekend.Â The FBIÂ releasedÂ a statement Wednesday night, naming a Russia-linked hacking group as behind the ransomware attack.Â “JBS USA and Pilgrim’s continue to make significant progress in restoring our IT systems and returning to business as usual,” said Andre Nogueira, JBS USA CEO. “Today, the vast majority of our facilities resumed operations as we forecast yesterday, including all of our pork, poultry and prepared foods facilities around the world and the majority of our beef facilities in the US and Australia.”Â “Given the progress our teams have made to address this situation, and we anticipate operating at close to full capacity across our global operations Thursday,” Nogueira added. Brazil’s JBS controls nearly a quarter of the slaughtering capacity for US cattle and hogs, and concerns of a me …
	ADP Employment Surges In May Led By Services Rebound ADP Employment Surges In May Led By Services Rebound After disappointing jobs data in April, May’s ADP data showed an increase of 978,000 jobs in May (above the highest economist’s estimate)… Source: Bloomberg This is the biggest monthly increase since June 2020. œPrivate payrolls showed a marked improvement from recent months and the strongest gain since the early days of the recovery, said Nela Richardson, chief economist, ADP. The gains were seen across all company size cohorts and only the “Information” industry saw job losses…
	Futures Dump As Meme Stock Mania Goes Into Overdrive Futures Dump As Meme Stock Mania Goes Into Overdrive Futures were already looking a shaky when they took a hit lower after news that Russia would cut the dollar from its sovereign wealth fund, shifting to euros, yuan and gold instead in an attempt to reduce exposure to U.S. assets amid threats of sanctions.Â . They then slumped even more on the perfectly predictable news that AMC would offer 11.55mm shares in an At The Market offering, with the Emini sliding 0.6% to 4,175 after trading around 4,210 for much of the overnight session. Nasdaq futures were hit even harder, dropping 1% even though the broader risk-off mood did not help TSY yields which rose modestly, while the dollar barely dipped from its upward trajectory even as Bitcoin rose again, approaching $40,000. Despite the hit to AMC following news of the equity offering, the stock still remains green on the day after soaring 95% the previous day, and although we saw a tremendous meme stock rally, it is now fading fast. After our post that Workhorse was the most shorted Russell 2000 name, the company soared e …
	Overseas travel: No countries added to England’s green list Holidaymakers, the travel industry, and hotspot destinations were hoping for a lockdown relaxation.
	Indoor dining boost drowned out by record May rain Footfall on UK High Streets and shopping centres was “muted” despite indoor hospitality reopening.
	Tesco staff win legal argument in equal pay fight A court ruling brings Tesco shop workers a step closer to gaining equal pay with warehouse staff.
	RIL shares maintain winning run for 7th day; market cap crosses Rs 14 lakh cr mark The market heavyweight stock has jumped 12.45 per cent in seven trading sessions. Following the upbeat sentiment, the company’s market valuation has reached Rs 14,00,541.47 crore on Thursday at the BSE.
	Sugar stocks turn sweeter as govt advances ethanol-blending deadline Shares of Balrampur Chini Mills rallied 8 per cent to Rs 325.85, whereas Rana Sugars showed similar gains to trade at Rs 15.92. Shree Renuka Sugars and Bajaj Hindustan hit upper circuit limits of 5 per cent to Rs 15.65 and Rs 11.70, respectively.
	Wipro becomes third IT firm to hit Rs 3 lakh crore marketcap Shares of Wipro soared over 1 per cent on Thursday to scale its new lifetime of Rs 550, leading its market-cap to cross the Rs 3.01 lakh crore mark
	May 2021 ADP Employment Grew 978,000 Written by Steven Hansen ADP reported non-farm private jobs growth of 978,000 which was within expectations. A quote from the ADP authors: While goods producers grew at a steady pace, it is service providers that accounted for the lion’s share of the gains, far outpacing the monthly average in the last six months.
	Economic Report: Unemployment claims fall below 400,000 for the first time during the pandemic Coronavirus cases are falling fast and so are the number of people losing jobs: New applications for regular unemployment benefits fell below 400,000 in late May for the first time since the early days of the coronavirus pandemic. Initial jobless claims dropped by 20,000 to 385,000.
	Economic Report: U.S. gains 978,000 private sector jobs in May, ADP says U.S. private-sector employment rose by 978,000 in May, according to the ADP National Economic Report released Thursday.
	: AMC stock dives after deal to sell up to 11.6 million shares Shares of AMC Entertainment Holdings Inc. swung to loss in early trading Thursday, after the movie theater operator announced a deal to sell up to 11.6 million shares, as it takes advantage of the recent trading frenzy to raise cash.