Written by Gary
Powell pushes back against tapering talk (SPY +0.2%). June 2021 Producer Price Final Demand Inflation continues to heat up.
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. | |
EIA Inventory Report Sends Oil Prices HigherCrude oil prices inched higher today after the Energy Information Administration reported a crude oil inventory draw of 7.9 million barrels for the week to July 9. The report was delayed due to a technical issue, per MarketWatch. Last weeks inventory decline compared with a draw of 6.9 million barrels for the previous week and an estimated decline of 4 million barrels, as reported by the American Petroleum Institute on Tuesday. At the time of writing, Brent crude was trading at $ 76.15 a barrel and West Texas Intermediate was trading at | |
Oil Stabilizes After Saudi-UAE Compromise Removes Major UncertaintyOil prices steadied on Wednesday morning before the EIA inventory report after a reported compromise between Saudi Arabia and the UAE over baseline production levels removed a major uncertainty that was hanging over the market. As of 9:58 a.m. EDT on Wednesday, WTI Crude was down 0.32 percent at $74.93 and Brent Crude prices were down 0.17 percent at $76.29. Earlier in the day, oil prices were deeper in the red, as market participants started to fret about what low Chinese imports would mean for global oil demand. Chinas crude | |
U.S. Waives Sanctions On Frozen Iranian Oil FundsThe United States has decided to temporarily waive sanctions on Iranian oil funds abroad but without returning Tehran’s access to its bank accounts in Japan and South Korea. “Allowing these funds to be used to repay exporters in these jurisdictions will make those entities whole with respect to the goods and services they exported to Iran, address a recurring irritant in important bilateral relationships, and decrease Iran’s foreign reserves,” the waiver, which the Department of State presented to Congress, said, as quoted by Iran’s Mehr news agency. | |
Oil Falls As Saudi Arabia And UAE Compromise On DealSaudi Arabia and the United Arab Emirates (UAE) have resolved their nearly two-week-long standoff over baseline production levels that was blocking a unanimous OPEC+ deal on oil supply, a delegate from the OPEC+ group told Reuters on Wednesday. Under the compromise, the UAE will see its baseline production level lifted to 3.65 million barrels per day (bpd) when the current pact expires in April 2022, according to the source. The current baseline for the UAE was around 3.17 million bpd. Earlier this month, the UAEblocked a dealon OPEC+ | |
Oil Has Become The Hottest Commodity On Wall StreetCrude oil has been having a great 2021 so fara very different situation to last years when the pandemic devastated demand for all commodities fueling a price rout that lasted well into 2020. Now, commodities are back with a vengeance, and nowhere is this vengeance clearer than in oil. Crude has become the hottest commodity for traders in the past few weeks as surging demand has topped all expectations, sparking a run on oil futures. According to a recent Wall Street Journal report, in mid-June, the ratio of bullish to bearish bets | |
The Discovery That Sparked A New Canadian Gold RushA junior mining company has just raised the stakes in our pick for the most exciting gold exploration play in Canadas massive Quebec province. Just weeks after a reporting a new discovery at depth (and not just of gold), Starr Peak Mining Ltd. (TSX:STE.V; OTC:STRPF) has again announced high-grade results from its ongoing 2021 drilling campaign. And now its its drilling program from 20,000 meters to 40,000 meters, in a huge campaign that is fully funded. What Starr Peak reported it found in its first discovery announcement on May 4th | |
Nearly 3,000 guests, crew disembark cruise in Singapore after positive Covid case left them confined in cabinsNearly 3,000 guests and crew are disembarking a Dream World Cruise in Singapore after being confined for hours due to one positive Covid-19 case. | |
Ex-Trump Treasury Secretary Steven Mnuchin’s firm leads $275 million investment in CybereasonMnuchin’s firm, Liberty Strategic Capital, is investing $200 million while Neuberger Berman and SoftBank are investing $75 million. | |
Investment in space companies hit record $4.5 billion in the second quarter, report saysPrivate investment in space companies hit $4.5 billion in the second quarter, according to a report by New York-based firm Space Capital. | |
Delta CEO says delta Covid variant has had no impact on bookingsDelta CEO says delta Covid variant has had no impact on bookings | |
Software company SeatGeek boosts NBA ticketing partnerships with Brooklyn Nets dealBSE Global, which operates the Brooklyn Nets, will leverage SeatGeek’s technology for ticket sales starting in October. | |
UK government plans to slash transport emissions by decarbonizing aviation, trucks and railFocus on decarbonization of trucks would complement plans to electrify cars and vans. | |
Airbnb trails Expedia this year, and traders are split on which is the better bet in second halfAirbnb received a rare double upgrade to buy at Gordon Haskett this week. Two traders weigh in on where they stand on the stock. | |
Oatly accused of overstating revenue and greenwashing by activist short Spruce PointActivist short Spruce Point Capital Management has accused Oatly of shady accounting practices and misleading investors about its sustainability practices. | |
EU presents its plan to achieve carbon neutrality. Here’s what you need to knowThe 27-member bloc has vowed to become carbon neutral by 2050. | |
Delta reports first profit since 2019 thanks to federal aid, improving revenue as travelers returnDelta’s quarterly report came in better than Wall Street estimates as travelers returned and federal aid drove it to its first profit since 2019. | |
Jeep unveils 2022 Compass SUV ahead of EV pushThe compact SUV is the brand’s best-selling vehicle globally. It’s scheduled to arrive in North American showrooms in the fall, starting at $24,995. | |
American Airlines shares surge on carrier’s better second-quarter forecastAmerican Airlines forecast it will report a “slight” pretax profit for the second quarter and better revenue than previously estimated, sending shares higher. | |
Norwegian Cruise Line sues Florida surgeon general to end vaccine passport banNorwegian Cruise Line filed a lawsuit against Florida’s surgeon general to put an end to the state’s law preventing businesses from asking to see vaccination proof. | |
Severe Weather Threatens 90 Million People In Midwest And Northeast StatesÂSevere Weather Threatens 90 Million People In Midwest And Northeast States The Storm Prediction Center has warned that severe thunderstorms are forecasted across the Midwest and Northeast on Wednesday. Â
CNN estimates as many as “90 million people across the Midwest and Northeast” could be affected by today’s storms.  Wisconsin; Cedar Rapids, Iowa, and Rochester, Minnesota are at risk of intense storms. This could be great news for the corn belt in desperate need … | |
Undermining Capitalism With Unreal Values And Crass DistortionUndermining Capitalism With Unreal Values And Crass Distortion Authored by Michael Lebowitz via RealInvestmentAdvice.com, œCompared to What,  a classic jazz tune written in 1966, became famous in 1969 by Les McCann and Eddie Harris at the Montreux Jazz Festival. Over 200 artists made covers of the song. The song (LINK) is a protest about Vietnam, crime, and economic and social inequality. Fifty years later, there is no Vietnam war to protest, but social and economic inequality is again front-page news. After casually listening to the song, one line œUnreal values, Crass distortion hit us over the head. The quote would have been perfect for several articles we have written to describe the economy and markets. Alas, those words also accurately describe the Fed’s role in redefining œcapitalism, the topic of this article. Don’t Blame Capitalism It has become popular to blame capitalism for today’s economic inequality issues. We wholeheartedly disagree. The fault lies heavily in Washington DC for redefining capitalism. Corporations own Capital Hill and the Oval Office. Their ability to fund elections ultimately allows them to pick our leaders. Candidates unwilling to take corporate money have little chance of winning elections. Once a politician is bought, the laws are mainly written to benefit corporations. The nation is stumbling into an odd mixture of corporate socialism as a result. Compan … | |
More Details Of Democrats’ Tax Hike Plans EmergeMore Details Of Democrats’ Tax Hike Plans Emerge Update (1140ET): Following comments from a team of Goldman analysts who warned in a note to clients published this morning that the Democrats’ new spending plan (and the tax hikes they say will accompany it) is a “downside risk to our fiscal assumptions”. Since centrist Democrats likely won’t accept more than $1.5 trillion in additional taxes, “this would likely amount to less than the $3 trillion in additional spending we have been assuming.” They expanded on their view in five points: The outlines of the Senate’s budget resolution have emerged. Senate Majority Leader Schumer has announced that Democrats on the Senate Budget Committee have agreed to a top line spending increase of $3.5 trillion. In a separate comment, Sen. Warner, who sits on the committee, told reporters the resolution would be “fully paid for”, i.e., that it would not increase the deficit. If the resolution does not provide for an increase in the deficit, the spending increase might be limited to however much new revenue can be agreed to. The resolution only sets the upper limit on the spending increase that Democrats can pass using the reconciliation process; if a smaller set of tax increases is all that can win support, the spending increase might need to be dialed back. This is an area where the details of the resolution matter and at this point the details are still very unclear. It is very unlikely that congressional Democrats will raise taxes by $3.5 trillion over ten years, we believe. Our expectation has been that congressional Democrats might be able to agree on tax increases worth around $1.5 … | |
Watch Live: Powell Pushes Back Against Tapering TalkWatch Live: Powell Pushes Back Against Tapering Talk Fed Chairman Jerome Powell is set to begin his latest round of Congressional testimony before the House Financial Services Committee – a committee that’s led by California Rep. Maxine Waters and stocked with left-wing “firebrands” like AOC – at 1200ET on Wednesday. Readers can watch live below: In his opening remarks – as we previewed earlier -Â the Fed chairman pushed back against the notion that the Fed should consider accelerating the process of tapering its asset purchases and raising interest rates, processes which it last abandoned long before the pandemic hit. His remarks helped propel the S&P 500 to fresh record highs at the open (though stocks have drifted lower since). Powell repeated his favorite analysis of the ‘transitory’ inflationary forces pushing on prices: “strong demand in sectors where production bottlenecks or other supply constraints have limited production has led to especially rapid price increases for some goods and services, which should partially reverse as the effects of the bottlenecks unwind.” As for rolling back the Fed’s ultra-loose monetary policy? That won’t be happening for a long time yet, no matter what Jim Bullard says (though Bullard will have slightly more influence … | |
John Lewis and Waitrose plan to cut 1,000 jobsJohn Lewis and Waitrose want to make the cuts as part of a shake-up of store management. | |
Waterstones to encourage shoppers to wear masks in storesBookseller is one of the first major chains to state policy for shops, but its stance attracts a mixed response. | |
North West England leads housing boom with prices up 15%Official figures show property prices also rising rapidly in Scotland, Wales and the North East of England. | |
Zomato IPO sails through on first day thanks to strong retail responseData compiled from BSE and NSE suggests that the retail quota was subscribed 2.69 times. The portion reserved for qualified institutional buyers (QIBs) was subscribed 98 per cent. | |
Oil prices drop after Saudi-UAE reach output compromiseBrent crude was down 57 cents, or 0.75 per cent, at $75.92 a barrel by 1120 GMT after dropping by over $1 earlier. West Texas Intermediate was off by 58 cents, or 0.77 per cent, at $74.67 a barrel. | |
Gilts close steady as mkt awaits details of next RBI OMOBond traders expect the central bank to make the announcement this week or latest by Monday. | |
June 2021 Producer Price Final Demand Inflation Continues To Heat UpWritten by Steven Hansen The Producer Price Index (PPI) year-over-year inflation increased from +6.6 % to +7.3 % | |
Deep Dive: 19 dividend stocks to help you combat inflationThese stocks have dividend yields that are at least three times as high as the yields on 10-year U.S. Treasury notes. | |
Crypto: A 29-year old crypto billionaire has Goldman, CME Group in his crosshairs as his exchange aims to surpass CoinbaseSam Bankman-Fried, which owns one of the fastest-growing digital-exchange platforms in the world, says he wants to overtake Binance and Coinbase Global, the No. 1 and 2 largest cryto platforms in the world. Then he might buy Goldman Sachs or the CME Group. | |
The Ratings Game: Peloton stock falls after long-time bull says it ‘makes sense’ to stop buyingShares of Peloton Interactive Inc. sank Wednesday, after Wedbush analyst James Hardiman backed away from his long-time bullish stance, citing uncertainty over the at-home-fitness company’s ability to navigate a more competitive post-pandemic world. |
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