Written by Gary
A stench of Wall Street bad breadth is at its worst since the Dot Com Bubble (SPY -0.9%). Wells Fargo just announced that it’s shutting down all of its existing personal lines of credit.
Here is the current market situation from CNN Money | |
North and South American markets finished mixed as of the most recent closing prices. The Bovespa gained 1.21%, while the IPC led the S&P 500 lower. They fell 1.14% and 0.06% respectively. |
What Is Moving the Markets
Here are the headlines moving the markets. | |
Senior U.S. And Saudi Officials Meet Amid OPEC+ ImpasseSenior officials in the Biden Administration met this week with a younger brother of Saudi Arabias Crown Prince Mohammed bin Salman in what was the first officially acknowledged high-level meeting between the United States and Saudi Arabia since the killing of Saudi journalist Jamal Khashoggi. The meeting on Tuesday in Washington between U.S. National Security Advisor Jake Sullivan and Saudi Vice Minister of Defense, Khalid bin Salman bin Abdulaziz Al-Saud, a younger brother to the powerful crown prince, came just as the Biden Administration | |
Oil Prices Rise As EIA Data Beats ExpectationsCrude oil prices rose higher today after the Energy Information Administration reported an inventory draw of 6.9 million barrels for the week to July 2. This compared with a draw of 6.7 million barrels for the previous week. Analysts had expected the EIA to report a 3.925-million-barrel draw in crude oil inventories for the week. Whatever the EIA estimates, they are unlikely to move prices very much this week or for very long, not with OPEC+ canceling its last meeting without making a decision about future production, prompting abundant speculation | |
Oil Continues To Slide As OPEC Stays SilentOil prices fell for a third day in a row early on Thursday as uncertainty coming from the OPEC+ deadlock and fears of COVID variants spreading fast weighed on the market. As of 10:44 a.m. EDT on Thursday, before the weekly EIA inventory report, WTI Crude was down 0.69 percent at $71.70 and Brent Crude traded down 0.39 percent at $73.11. Both benchmarks have now lost $3-4 per barrel since Monday close, when they hit multi-year highs. The market largely shrugged off a seventh straight weekly inventory draw reported by the American Petroleum Institute | |
US Embassy Targeted On Third Day Of Attacks in IraqThe U.S. Embassy in Baghdads Green Zone was the target of a rocket attack early on Thursday as tensions in Iraq escalate with daily attacks on U.S. troops and personnel in what an analyst says is a coordinated escalation coming from Iran-backed Shiite militias in Iraq. One of the two rockets fired at the U.S. Embassy in Baghdad on Thursday was diverted by the anti-rocket systems, while the other landed close to the perimeter of the Green Zone, Iraqi security sources told Reuters. This was the third attack at bases or buildings housing U.S. | |
Poor Hedging Could Cost U.S. Shale $20 BillionU.S. shale oil producers have suffered billions in losses from hedging their output at lower than current prices, the Financial Times reported today, citing data from IHS Markit. According to the consultancy, even though crude oil is trading at over $70 per barrel right now, U.S. shale producers are selling their barrels for an average of $55 because thats the price they hedged their future sales at. For the first half of the year, IHS Markit says, losses have reached $7.5 billion but if oil prices remained around $75 per barrel, this could | |
Oil Prices Still Have Room To RunAt mid-year 2021 we find that we are in an unsettled state with respect to crude supplies. Of the three largest contributors to global supply, the U.S.A., Russia, and OPEC+ (Russia is the + in OPEC+), all capable of producing more than 10 mm BOPD, we find that it is OPEC+ in a bit of disarray. With the world now in deficit status with regard to oil production and demand by 2-3 mm BOEPD, there is little room for error. In an article carried in Reuters, the emerging dynamics of the current OPEC+ meeting were in focus. The major topic | |
BP says all other global energy crises pale in comparison to the year of Covid. These stats show whyBP said the coronavirus crisis last year resulted in primary energy and carbon emissions falling at their fastest rates since World War II. | |
NBA Finals Game 1 featuring Suns-Bucks attracts 8.5 million viewers, up 13% from last yearThe NBA said Game 1 also set 20-year viewership highs in the Phoenix and Milwaukee markets. | |
These 6 psychological biases may be holding you back from building wealthInstead of letting your emotions rule your decisions, using the rational part of your brain can help you overcome these psychological biases. | |
Nobel-winning poverty researcher on why people aren’t going back to workEsther Duflo, whose antipoverty research won a Nobel Prize, says blaming unemployment benefits for a tight labor market misses the mark on the Covid economy. | |
Electric Dodge muscle car and Ram pickup part of Stellantis’ $35.5 billion EV plansThe company expects more than 70% of sales in Europe and over 40% in the U.S. to be low emission vehicles (EVs and hybrid electric models). | |
U.S. heading for ‘dangerous fall’ with surge in delta Covid cases and return of indoor mask mandatesThe U.S., which just celebrated the Fourth of July, is headed toward a “dangerous” fall when the delta variant is expected to cause another surge in new cases. | |
Olympics will ban spectators after Japan declares state of emergencyJapan’s state of emergency due to rising Covid-19 cases will last from July 12 through Aug. 22. | |
‘Black Widow’ is an action-packed summer blockbuster worth the price of a movie ticket“Black Widow” deftly transitions between spy thriller and family comedy. The critics agree: Natasha Romanoff should have gotten a solo adventure years ago. | |
Beyond Meat launches new meat-free chicken tenders in U.S. restaurantsBeyond Meat on Thursday announced the launch of meat-free chicken tenders in nearly 400 restaurants across the U.S. | |
Headache? Runny nose? These are among the new top 5 Covid symptoms, study saysSymptoms associated with Covid-19 are changing with the advent of new variants. | |
MLB, Candy Digital will offer World Series ring with Los Angeles Dodgers NFTThe Fanatics-owned company will make it second NFT avaiable as part of an licensing agreement with MLB. | |
Global Covid death toll exceeds 4 million, Hopkins data showThe World Health Organization declared the coronavirus outbreak a global pandemic more than a year ago. | |
England 2-1 Denmark: Harry Kane strikes extra-time winner as Three Lions set up Euro 2020 final with ItalyGareth Southgate’s team eclipsed the manager’s icons of 25 years ago with a hard-fought 2-1 win over brave Denmark. | |
Europe’s Own “Belt And Road” Initiative: Roady McRoadfaceEurope’s Own “Belt And Road” Initiative: Roady McRoadface By Michael Every of Rabobank A road by any other name The Fed minutes provided something of a surprise. The same FOMC so recently telling us it would not raise rates until end-2024 because the economy is unfair -then shifting to end-2023 after a supply-chain snarl it didn’t predict- reports œvarious participants mentioned that they expected the conditions for beginning to reduce the pace of asset purchases to be met somewhat earlier than they had anticipated at previous meetings in light of incoming data. So when is that – 2022? Isn’t that ¦(checks calendar) six months from now?! Of course, there were some doves talking about unemployment data too. However, it is a further warning for markets that US mega-QE may be a star-crossed love not long destined for this world ” and parting from it is likely to be far more sorrow than sweet for most asset classes. US Treasury yields continue to plunge, again making a mockery of those who had been saying this time the break-out was real. 2s closed at 0.21%, down 6bp from their recent peak; 10s spent part of the day below 1.30% and closed at 1.32%, down 13bp from the Wednesday intraday high; and 30s are at 1.94% when they were 2.45% in March. What an economic dawn is projected in that yield move! Yet just as the Fed (and RBNZ) is leaning towards tightening, the ECB and PBOC are leaning the other way. Which is going to get ‘interesting’: imagine a market with the Fed (and RBNZ!) leaning one way and the ECB/PBOC/BOJ/RBA the other. Bloomberg quotes ECB officials that the Bank’s review will see a shift to a ne … | |
WTI Rebounds Above $72 After Gasoline Demand Hits Record HighWTI Rebounds Above $72 After Gasoline Demand Hits Record High Oil prices are down for the 3rd straight day as ‘Delta’-variant (demand) fears combine with OPEC+ cartel collapse fears as the Saudis and UAE continue their game of chicken (and see prices fall in the face of their hopes).
After API’s report, expectations remain for a seventh straight weekly draw in crude stocks, so all eyes will be on any cracks in the recovery narrative in the official inventory/production/demand data. API Crude -7.983mm (-3.9mm exp) Cushing +152k Gasoline -2.736mm Distillates +1.086mm DOE Crude -6.867mm (-3.9mm exp) Cushing -614k Gasoline -6.075mm Distillates +1.616mm Official data confirmed API with a 7th straight week of crude inventory drawdowns, but gasoline stocks tumbled far more than expected… | |
Wells Unexpectedly Shuts All Existing Personal Lines Of Credit, Hinting US Economy On The EdgeWells Unexpectedly Shuts All Existing Personal Lines Of Credit, Hinting US Economy On The Edge Wells Fargo just announced that it’s shutting down all of its existing personal lines of credit – a popular product offered by the retail-focused Wall Street giant – a move that will likely infuriate legions of customers. The revolving credit lines, which will be shut down in the coming weeks, typically allow users borrow $3K to $100K, were pitched as a way to consolidate higher-interest credit-card debt, pay for home renovations or avoid overdraft fees on checking accounts attached to the loan.
According to CNBC, it’s the latest “difficult decision” facing Wells CEO Charlie Scharf, who is being forced to make cutbacks to the banks’ business thanks to restrictions imposed by the Federal Reserve years ago as punishment for the bank’s criminal scandals like the now-infamous scandal whereby branch managers opened credit lines for customers without permission. a scandal that outraged the public.
The sudden closures will leave many customers without what … | |
Market’s 4th Worst Open Ever As Stench Of Bad Breadth Is Worst Since Dot Com BubbleMarket’s 4th Worst Open Ever As Stench Of Bad Breadth Is Worst Since Dot Com Bubble Stocks are trading just 1% below their all time high, yet judging by today’s open there was sheer capitulation panic. There is a reason for that: as noted last week, the market breadth has been collapsing similar to what we observed last summer when a handful of market “generals” did all the heavy lifting. Well, as Bloomberg’s Ye Xie shows market breadth has only gone from bad to abysmal, with the number of S&P stocks above their 50DMA at just about 50%, a very tiny increase from the 47% on June 29 when the S&P hit its first of many consecutive all time highs. Putting these numbers in context, Xie writes that “over the past three decades, there were only two periods when we saw this negative divergence (record stocks with breadth below 50): in 1998 and 1999.” Of note, the latter print took place just before the dot com bubble burst. And so, as traders woke up today to see everything melting down with those of a certain vintage recalling what happened in early 2000, they dumped th … | |
Easyjet warns travel rules may just benefit richCostly testing could put travel out of reach for some, despite more relaxed rules, the airline says. | |
Will England’s success boost the UK economy?The chancellor and others think the tournament could boost consumer confidence as the economy reopens. | |
Chancellor Rishi Sunak hints at ruling out 8% pension riseRishi Sunak says a decision on the future of the triple lock promise will be “based on fairness”. | |
Jai Balaji Industries: Back from brink of bankruptcy, but can it be a revival bet?After becoming a 1MTPA company from being a 1 lakh tonne firm in 42 months, Jai Balaji became more ambitious. It embarked upon a plan to set up a 5 million tonnes steel plant along with a 1,215 MW power plant at Purulia, West Bengal. | |
Market Movers: China concerns spark selloff in metals, Tata MotorsShares of metal companies were among the biggest losers on the day. Concerns surrounding slowing economic growth in China, the largest consumer of metals, arose in the light of media reports that the Chinese Cabinet was in favour of cutting interest rates. | |
CDSL becomes first depository to open 4 crore demat accountsCDSL is currently the largest depository in the country in terms of active demat accounts. | |
Market Snapshot: Dow drops 300 points as growth scare triggers fall in bond yieldsU.S. stocks fall sharply Thursday as yields on government bonds extend their decline as investors shy away from bets on a blistering economic recovery and rising inflation. | |
ETF Wrap: ETFs set to smash a 2020 record of $504 billion net inflows and it’s only JulyEvery week we highlight the most timely exchange-traded fund news, from new launches to inflows and performance. | |
: Gary Vaynerchuk says this is how you can tell if an NFT will be a winner over the next 10 yearsThe 45-year-old CEO of VaynerMedia who invested early in Facebook and Twitter spoke with MarketWatch about NFTs — and how smart 13-year-olds are. |
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