Written by Gary
Futures rebound from rout as “Buy The Dip Outweighs Fear” even as yield slide continues (SPY +0.3%). The biggest premarket movers: Travelers, Halliburton, IBM, and PPG.
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. | |
 | What’s Next For Oil After The New OPEC+ DealThe recent OPEC+ meeting ended with an agreement that would gradually increase the cartels monthly production until in late 2022 all of the 9.7 mm BOPD that had originally been withheld from the market, was restored. There was already an agreement in place through December of 2021, but the Kingdom of Saudi Arabias, (KSA) desire to extend it to the end of next year was a bone of contention with the United Arab Emirates, (UAE). This agreement was not reached easily and required some negotiation and compromise to achieve. It has |
| Chinas Changing Policies Could Create A Huge Oil Demand DeficitFigures released last week show that Chinas crude oil imports in the first half of 2021 declined for the first time in eight years. China has been the worlds largest net importer of crude oil and other liquids in the world since September 2013 and almost on its own created the 2000-2014 commodities supercycle, characterized by consistently rising price trends for all commodities including oil – that are used in a booming manufacturing and infrastructure environment. This oil consumption boom from China was a |
| Why Saudi Arabia Hiked Oil Prices So AggressivelyThe failure of the OPEC+ talks and the subsequent (albeit gradual) rapprochement of the sides coincided with Middle Eastern NOCs setting their August 2021 official selling prices. The connection between the OPEC+ talks and Saudi Arabias expectations was visible in that Saudi Aramco did not issue its official prices up until the last point, publishing them only when the Vienna meeting was definitely and certifiably called off. The delay of Saudi Arabias month-on-month hikes only underscores the intent; by hiking August prices across |
| Why We Can’t Afford To Turn Our Backs On Fossil FuelsWhen President Biden served the death blow to the Keystone XL pipeline this January, environmentalists rejoiced. Canadian oil exports to the United States, however, did not decline. What those rejoicing about the cancellation of Keystone XL were forgetting is something that many people seem to forget: it’s not the supply of oil that is the problem. It’s the demand. The International Energy Agency raised hackles earlier this year when it released its Roadmap to Net-Zero. Some called the roadmap a bombshell. Others dismissed it as impossible. Saudi |
| Oil Continues To Collapse On OPEC News, COVID FearsOil prices continued their decline in the afternoon hours on Monday, with WTI crude falling sharply to $66.33 per barrel. The price of a WTI barrel was down 7.63% on the daya slide that began following the Sunday OPEC meeting, which only grew worse as Delta variant fears crept into the markets. The price drop is despite the forecast for an ever-tightening supply situation in the oil market. Poor timing OPECs timing could be seen as rather unfortunate. The group was handed a favor in the IEAs prediction that the market shortfall |
| South American Oil Under Threat As Unrest Grapples The RegionThe Arab Spring, which was a series of pro-democracy anti-government uprisings over a decade ago that swept across several largely Islamic states, triggered a substantial regional conflict that ultimately impacted global oil production. Those events left a legacy of civil war in OPEC member Libya, Syria, and Yemen. There are emerging fears of similar developments occurring in Latin America, with many countries in the region rocked by widespread anti-government protests since 2019. Colombia, Latin Americas fourth-largest oil producer, and |
| Stocks making the biggest moves premarket: Travelers, Halliburton, IBM, PPG & moreThese are the stocks posting the largest moves before the bell. |
| 5 things to know before the stock market opens TuesdayDow futures bounced Tuesday, one day after the 30-stock average had its worst session in eight months. |
| Salesforce projects retailers will pay $223 billion extra for goods in the second halfU.S. retailers could grapple with expenses that are 62% higher than what they spent in the second half of 2020, based on a new forecast from Salesforce. |
| CO2 emissions set to hit record levels in 2023 and there’s ‘no clear peak in sight,’ IEA saysAchieving climate-related goals is a major challenge for governments around the world. |
| Indonesia must ‘protect the people’ without sacrificing the economy, finance minister saysIndonesia’s finance minister Sri Mulyani Indrawati discusses the country’s shifting budgetary focus to “protect the people” without sacrificing the economy. |
| Singapore tightens restrictions again as Covid cases riseSingapore reintroduced a ban on dining-in, and limited the maximum number of people allowed to gather from 5 to 2. |
| Travel prices and crowds are surging ” but not at these U.S. destinationsWith American vacationers congregating in many of the same destinations, some travel spots ” even well-known ones ” have fewer people than usual. |
| First Horizon regional bank reaps benefits of southern population growth, CEO says“We’re seeing an influx of people into the South. It’s been very, very positive, and we will continue to see that,” First Horizon Bank CEO Bryan Jordan told CNBC. |
| Billionaire Joe Tsai is the ‘mystery buyer’ behind $157 million Manhattan apartment dealAlibaba co-founder Joe Tsai is the mystery buyer behind a $157 million apartment deal in Manhattan’s most prestigious condo tower, according to people familiar with the deal. |
| Jim Cramer says the stock market will bottom after speculators find the exit“Once the speculators are blown out ¦ and the stocks that are already down huge start rallying, then we can find a tradeable bottom,” the “Mad Money” host said. |
| Federal judge rules that Indiana University can require Covid vaccines for studentsA federal judge upheld a university’s vaccine requirement for returning students in what appears to be the first case of its kind. |
| AMC signs deal to lease The Grove and Americana, two of Los Angeles’ top-grossing cinemasAMC is taking over the leases of cinemas at The Grove shopping complex and the Americana at Brand. Both locations were formerly operated by Pacific Theatres. |
| Movie theater group blasts Disney for releasing ‘Black Widow’ in theaters and streaming at same timeThe entertainment industry is in a precarious spot, with studios and movie theater operators at odds about how and when movies should be released in theaters. |
| Watch Live: “New Shepard Go For Launch” – Billionaire Jeff Bezos Prepares To Blast Into OrbitWatch Live: “New Shepard Go For Launch” – Billionaire Jeff Bezos Prepares To Blast Into Orbit Amazon’s billionaire founder Jeff Bezos and three crewmates are set to travel aboard Blue Origin’s New Shepard spacecraft on Tuesday to the edge of space. Bezos will be joined by Mark Bezos (Jeff’s brother), Wally Funk (82yo aviator), and newcomer Oliver Daemen (18yo high school student).
The launch will be broadcast live on BlueOrigin.com beginning at 0730 ET. Liftoff is currently targeted for 0900 ET. Here’s a timeline of today’s events:
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| Tokyo Olympic Bubble ‘Compromised’ As COVID Case Count Hits 71Tokyo Olympic Bubble ‘Compromised’ As COVID Case Count Hits 71 With the Tokyo Olympics set to start Friday, the negative headlines continue to pile up. Thanks to bans on spectators and the ongoing State of Emergency in the Japanese capital city, public opinion in Japan has turned decidedly against the Games, with most Japanese rooting for the Olympics to simply be canceled. Dozens of staff and athletes have already tested positive. Outside of the COVID headlines, a Ugandan weight lifter has gone missing. Now, Reuters reports that the isolation bubble system put in place to house the athletes in the Olympic Village has already been compromised.
This means organizers’ promises that there would be “zero risk” of athletes infecting Tokyo residents have already been rendered moot. Kenji Shibuya, the former director of the Institute for Population Hea … |
| Panic!? Taco Bell And Starbucks Warn About ShortagesPanic!? Taco Bell And Starbucks Warn About Shortages By Jonathan Maze of Restaurant Business, Supply chain problems continue to plague the restaurant industry, leading big chains Taco Bell and Starbucks to warn consumers on Monday that some items may not be available.
Starbucks told customers on its app that “due to supply shortages, some items are temporarily unavailable.” That echoed warnings that have persisted at the chain’s locations for months. Consumers have complained on social media channels about periodic shortages of items such as green tea. At Taco Bell, customers are complaining about a lack of hot sauce. The Mexican fast-food chain’s website warns customers that not all items are available at the moment. “Sorry if we can’t feed your current crave. Due to national ingredient shortages and delivery delays, we may be out of some items, … |
| Futures Rebound From Rout As “Buy The Dip Outweighs Fear” Even As Yield Slide ContinuesFutures Rebound From Rout As “Buy The Dip Outweighs Fear” Even As Yield Slide Continues U.S. stock-index futures rebounded from Monday’s rout and European stocks were modestly in the green as investors weighing corporate earnings against the uncertain outlook for global growth, or as Bloombnerg put it, “as buy the dip outweighs fears.” But in a continuation of yesterday’s moves, treasury yields edged lower sliding to 1.16% while the dollar hit a fresh three month high while bitcoin tumbled below the key support level of $30,000. At 730 a.m. ET, Dow e-minis were up 200 points, or 0.6%, S&P 500 e-minis were up 23.00 points, or 0.54%, and Nasdaq 100 e-minis were up 70 points, or 0.48%.
IBM gained 4.0% in premarket trading as brokerages raised their price targets on the stock following strong quarterly growth in the company’s cloud and consulting businesses. Energy stocks Chevron, Schlumberger, Occidental and Phillips 66 rose between 0.8% and 2.7%, as oil prices edged higher after the previous session’s 7% slide. Halliburton added 2% after it posted a second-straight quarte … |
| Covid: Food industry calls for isolation rules exemptionSeveral industries are lobbying the government for their staff to be classed as critical workers. |
| Women’s state pension: Compensation closer for Waspi campaignersThe government was too slow to tell women they would be directly affected by the rising state pension age. |
| HMV backs High Street with plans for 10 new storesThe music chain’s owner says people love shopping and want to touch goods before buying. |
| Asian Paints Q1 results: PAT zooms 160% YoY to Rs 568 cr, sales surge 91%The paint maker’s consolidated profit before tax in the reported quarter rose 154.6 per cent on-year to Rs 778.6 crore. |
| 5 stocks which can deliver strong returns in the next 3-6 monthsAs the market is directionless, investors are trying to find bottom-up opportunities in the medium term. However, due to highetened valuation, money making opportunities may not be as widely available. Here, we have collated five stocks where analysts believe there is still some fire left to keep your pocket warm: |
| Jack Ma likely to reap 7x returns in Paytm IPO, Warren Buffett 3xAmong the selling shareholders include investment firms run by Jack Ma, Warren Buffett along with SAIF, SVF Panther, Anfin, Elevation Capital and Vijay Sekhar Sharma, who is the founder of the firm. |
| IPO Report: Zevia IPO: 5 things to know about the zero-calorie beverage company before it goes publicZevia’s CEO Paddy Spence noticed all the sugar in his diet in early 2001 and has made reducing sugar in others’ diets a focus. |
| : Nike manufacturing in Vietnam grinds to a halt due to COVID-19, creating another supply chain challengeMerchandise from Vietnam accounted for nearly half of Nike’s U.S. imports in the fiscal second quarter. |
| The Margin: Why over 186,000 people want Jeff Bezos to stay in space‘Do not allow Jeff Bezos to return to Earth’ reads one petition against the Amazon founder’s re-entry during his Blue Origin flight |
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