Written by Gary
Gundlach Warns Dollar Is “Doomed,” Stocks Are At “Nosebleed” Levels (SPY -0.3%). Fed fumble slams stocks, bond yields, & big shorts.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Biden Has Kickstarted A Consolidation Wave In The U.S. Shale PatchConsolidation is a troubled industry’s best friendand last year’s crisis in oil and gas brought about by the pandemic was no exception. Mergers and acquisitions started later than they normally do in an industry downturn, but we saw some sizeable deals nevertheless. Now, the M&A trend is set to continue, according to the latest reports. First, energy data analytics firm Enverus this week released its regular M&A report for the first half of the year, saying that despite a slow start to the year, dealmaking gathered pace in the second |
| Oil And Gas Is Booming In The Land Of EnchantmentNew Mexico, the Land of Enchantment, was concerned when Bidens pause on oil and gas drilling leases took hold, but six months into the new administration the states oil industry continues to go from strength to strength. After uncertainty about political decisions concerning oil and gas, following a year of low demand that drove down both oil prices and production levels, New Mexico has surpassed North Dakota as the second-largest oil producer in the U.S. following a boost in oil production this spring, not seen since the pre-pandemic |
| China & Nord Stream-2 Top Agenda As Biden Meets MerkelSerious differences over China and the Nord Stream-2 Russia to Germany natural gas pipeline are expected to be high on the agenda as President Joe Biden hosts outgoing German Chancellor Angela Merkel for what’s expected to be her last visit as head of state to the White House on Thursday. She steps down this fall after long ago affirming she wouldn’t seek a fifth term in 2021, and since becoming chancellor has made 23 official visits to Washington. The two sides arehoping to mend deeply strained relations ahead of Germany’s election in ten |
| China To Tap Coal Reserves As Prices SoarChina is set to release another 10 million tons of coal from its reserves to prevent shortages amid soaring coal prices and tight supplies in the fifth such release this year. The Chinese government will release further volumes of coal if the market demands it, the Chinese state planner, the National Development and Reform Commission, said, as carried by Reuters. Each of the four previous releases were of 5 million tons each. As per Reuters estimates, China holds around 40 million tons of coal in its reserve bases. Because of its geopolitical spat |
| OPEC Sees Global Oil Demand Exceeding 100 Million Bpd In 2022World oil demand is expected to surpass the 100 million barrels per day (bpd) mark in the second half of 2022, thanks to solid economic growth and expectations of continued success in containing the pandemic, OPEC said on Thursday. Global economic growth is set to jump by 5.5 percent this year and another 4.1 percent next year, the cartel said in its closely-watched Monthly Oil Market Report released on Thursday. OPEC sees global oil demand growing by 6 million bpd this year, unchanged from last months assessment. Total oil demand is projected |
| Oil Slips On Prospect Of Rising OPEC+ SupplyOil prices dropped early on Thursday as the market assesses the prospect of higher crude supply from the OPEC+ group after a reported compromise between key OPEC members Saudi Arabia and the United Arab Emirates (UAE). As of 11:21 a.m. EDT on Thursday, WTI Crude prices were down by 0.53 percent at $72.78 and Brent Crude was falling by 0.56 percent at $74.37. Oil prices extended losses from Wednesday, when the market fell sharply after reports emerged that Saudi Arabia and the UAE had resolved their nearly two-week-long standoff over baseline production |
| CDC Director Walensky calls Tennessee’s decision to cease vaccine outreach to teens ‘incredibly disturbing’CDC Director Rochelle Walensky said Tennessee’s decision to cease vaccine outreach to teenagers while in the midst of a pandemic is “incredibly disturbing.” |
| NBA’s Steph Curry joins NinetyToZero nonprofit focused on closing the racial wealth gap“Bridging the racial wealth gap is one of the biggest challenges of our generation,” said Steph Curry, the basketball superstar. |
| Nike seeks $856,162 in reduced restitution from disgraced lawyer Michael Avenatti for extortion schemeNike asked a judge to order fallen lawyer Michael Avenatti to pay more than $856,000 in restitution for his botched attempt to extort millions from the company. |
| Mark Wahlberg-backed F45 pops on IPO day. The actor says the workouts have incredible energy“The energy is absolutely incredible” at the company’s studios, Mark Wahlberg told CNBC from the floor of the NYSE before the stock started trading. |
| Autonomous driving start-up Aurora plans to go public through SPAC deal with initial value of $11 billionThe deal with Reinvent Technology Partners is expected to close this year, setting up the merged company with $2.5 billion in cash. |
| Nordstrom’s big annual sale is here, and the department store chain needs a boost now more than everAs Americans emerge from their homes and return to offices, weddings and college campuses, Nordstrom is betting they’ll require a brand-new wardrobe. |
| Fed up with being cursed out and attacked, flight attendants speak out about unruly passengersThe number of unruly passenger incidents on flights is skyrocketing. And the worst part? It’s not slowing down. |
| The Amazon rainforest is now releasing more carbon than it can absorb, study findsThe Amazon once absorbed more carbon than it released, but it now accounts for more than 1 billion metric tons of emissions every year. |
| Activewear and workout stocks are on the move. Two traders flag their favoritesWith workout stocks on the move, one activewear name, in particular, is the most attractive, two traders agree. |
| Former executives of FTE Networks charged with securities fraud and asset swindle, sued by SECMichael Palleschi, ex-CEO of FTE Networks, and ex-CFO David Lethem are accused of duping the public about their company’s financial condition. |
| Blue Origin reveals runner-up in $28 million auction will fly with Jeff Bezos to space next weekJeff Bezos’ space venture Blue Origin on Thursday revealed that 18-year-old Oliver Daemen will fly in place of the still-anonymous auction winner. |
| Airlines race to train pilots as travel demand roars backFlight simulators from Atlanta to Dallas to Miami are humming as airlines scramble to get hundreds of pilots trained to meet a rebound in bookings. |
| Fed Fumble Slams Stocks, Bond Yields, & Big ShortsFed Fumble Slams Stocks, Bond Yields, & Big Shorts A double whammy of potential pain from The Fed’s Powell (admitting they’re talking about tapering) and Evans (disappointed there’s not more inflation) provided just enough uncertainty to spook all asset classes today. The Philly Fed survey, initial jobless claims, and Industrial Production also disappointed today. Nasdaq underperformed for a change today early on, but as yields plunged in the afternoon, Small Caps were monkey hammered. But everything bounced back after 2pmET. The Dow managed to scramble back into the green in the last hour of the day. This was still Nasdaq’s worst day since early June…
As it appears maybe the growth/value rotation has reached a short-term limit for now… |
| Calling An End To The Commodity Rally? Not So FastCalling An End To The Commodity Rally? Not So Fast While much has been made around the fact that Lumber futures are now down for the year having been up c.200% at its peak, good luck trying to find actual lumber at your friendly neighborhood Home Depot at anything but nosebleed prices. Why? Simple: rising prices are stickier than superglu, and once higher producers will either wait until the last possible moment to cut, or will simply cartelize and limit production until demand eventually catches up with the new level of supply. Regardless, of the lag behind commodity end prices, lumber is still the big exception rather than the norm. As DB’s Jim Reid writes in his daily Chart of the Day titled “Food (energy and metals) for thought”, even as the reflation trade has stumbled over the last couple of months, commodities remain near their six-year highs. In fact, looking at the chart below, which shows the post-trough recovery in commodity prices over the last 20 recovery cycles going back to 1914, the post-Covid recovery is now the strongest on record, having just overtaken even the rebound from the 1933 Great Depression. So for those who are calling an early end to the commodity rally, Bloomberg’s John Authers has some words of caution: “in the case of the post-Depression rebound, the rally in commodities went on to be enduringly strong for another two years.” |
| Gundlach Warns Dollar Is “Doomed”, Stocks Are At “Nosebleed” LevelsGundlach Warns Dollar Is “Doomed”, Stocks Are At “Nosebleed” Levels It has been a while since DoubleLine Founder Jeffrey Gundlach sat for a lengthy interview with CNBC’s Scott Wapner, aka “the Judge”, during the network’s “Halftime Report”. Gundlach has at times clashed with various CNBC personalities, but his interviews draw a large audience thanks to his status as one of the industry’s foremost bond-market gurus – perhaps because his often bearish take on markets is a refreshing departure from the parade of uber-bulls that populates CNBC’s market-hours programming.
During Thursday’s interview, Gundlach – who started speaking just as Fed Chairman Jerome Powell was wrapping up his second day of Congressional testimony – warned that the only way stocks can sustain their record highs would be for the Fed’s unprecedented stimulus programs to remain in place forever. This isn’t the first time Gundlac … |
| Arizona Election Audit: Maricopa County Stonewalling – Will Not Turn Over Routers, Chain Of Custody, Ballot Images As Discrepancies FoundArizona Election Audit: Maricopa County Stonewalling – Will Not Turn Over Routers, Chain Of Custody, Ballot Images As Discrepancies Found Update (1515ET): During Thursday’s Arizona Senate hearing, auditors revealed that Maricopa County has refused to turn over necessary items – including routers, chain-of-custody documentation, and images of mail-in ballots. What’s more, 11,326 voters mysteriously appeared on voter rolls after the election, and 74,000 ballots were reportedly received but have no records to back them up.
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| Revolut becomes most valuable UK start-up after £24bn valuationRevolut’s latest valuation has made its Russia-born boss Nik Storonsky a multibillionaire. |
| Covid: Foreign Office still advising against travel to countries set to turn greenBoth will be added to the UK’s green list on Monday, but the foreign office still advises against travel. |
| Sainsbury’s and Tesco to encourage mask-wearing from MondayThe supermarkets will ask shoppers to keep the Covid measure even after the legal mandate is dropped. |
| New-age Indian IPOs may appeal to global investors singed by Chinese cos: Nilesh ShahShah’s comment came in the backdrop of several US-listed Chinese companies seeing a cumulative drop of over $800 billion in their market capitalisation from their peak, due to strict regulations brought in by the US as well as Chinese authorities. |
| MFs hiked stakes in 30 Nifty stocks in June. Check out their top buysOne of their key buys was JSW Steel, where shares held by mutual funds jumped by 15.2 per cent month-on-month (MoM) to 5.57 crore, valued at Rs 3,810 crore. |
| Bond yields rise on supply worries, fear of poor bidding at Friday’s primary saleWith elevated domestic inflation and heavy supply of government paper taking a toll on demand, the market fears that Friday’s auction could see investors bidding at high yield levels, which RBI may not be comfortable with. |
| Documentary Of The Week: A Guide To Critical Race TheoryWritten by John Lounsbury Few topics have been more in the public awareness in 2021 than Critical Race Theory (CRT). Yet full people seem to know exactly what this is. For the past four decades, CRT has been an academic activity with little exposure by name to the general public. This week we have what I think is a balanced review of what this thing is that’s called CRT.
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| Capitol Report: Biden, Merkel meet as tensions persist on Russian pipeline, China, vaccine patentsPresident Joe Biden and German Chancellor Angela Merkel were meeting Thursday at the White House, but they weren’t expected to announce any breakthroughs on key issues, even as discussions sounded more cordial than during the Trump era. |
| In One Chart: Small-cap stocks are getting crushed this week ” here’s what it meansU.S. small-cap stock investors are seeing the pain intensify this week, with the benchmark Russell 2000 losing its year-to-date lead over the tech-heavy Nasdaq. But all is not lost, according to one chart watcher. |
| Bond Report: 10-year Treasury yields sink beneath 1.30% as Powell says uneasy Fed still sees inflation recedingLong-dated Treasury yields retreat Thursday as Federal Reserve Chairman Powell said that a recent bout of high inflation has left the central bank œnot comfortable but undaunted in the belief that inflation, hanging well above the levels consistent with the central bank’s objectives of a 2% annual rate, would eventually recede. |
Summary of Economic Releases this Week
Earnings Summary for Today
leading Stock Positions
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