Written by Gary
U.S. futures were under some pressure after the DOW, SP 500 and Nasdaq logged a fifth straight session of gains and another day of record closes. Tesla tops $1 billion in profit, delays Semi launch.
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. | |
 | The EV Battery Conundrum: Commodity Rally Could Reverse Cost CurveAt the end of last year, BloombergNEF reported that the price of electric vehicle batteries had for the first time fallen to $100 per kWh. This is widely considered the tipping point for EV adoption because this battery price level makes the vehicle as cheap as an internal combustion engine car. Yet before anyone could really celebrate the news, other reports started coming in: a shortage of semiconductors, used generously in EVs as well as ICE cars; a looming shortage of steel because of supply chain disruptions resulting from the pandemic; but |
| Could A Helium Shortage Derail The Tech Boom?Discovered over a century ago, helium was never intended for balloons. It wasnt supposed to be a party gas. At the height of the Cold War, the United States recognized its strategic nature and started stockpiling it and controlling supply and pricing at a Federal Helium Reserve in Amarillo, Texas. Three decades later, in the 1990s, the federal government decided that helium could be sold to private entities. Now, reports say those reserves have been depleted, and the reserve is slated for shutdown in September, while the United States |
| Biden Faces Major Challenge As China Zeroes In On IraqA series of deals between China and Iraq in the run-up to this weeks visit of Iraq President Mustafa al-Kadhimi to Washington, including the latest involving Chinas build-out of Iraqs critical Fao refinery complex, might finally push the U.S. into formulating a genuinely workable strategy for continued engagement in Iraq.The Fao facility to the south of Basra and its surrounding and connected infrastructure is the key to much of Iraqs current and future crude oil supplies. Together with the build-out of Chinas |
| Argentinas Oil Industry Is Finally Bouncing BackWhile the COVID-19 pandemic and 2020s oil price collapse hit Argentinas hydrocarbon sector hard, leading to some analysts to claim that it may never fully recover, there is evidence of a healthy rebound is underway. This is especially positive news for the national government in Buenos Aires which for nearly a decade has pinned its hopes on fueling an economic revival by exploiting the massive hydrocarbon wealth of the Vaca Muerta shale play. The massive shale play, located in the oil-rich Neuqun province, is thought to hold |
| China To Build Airport, Houses Under Oil-For-Projects Deal In IraqChinese firms are set to build an airport and 90,000 houses in Iraq as part of a 2019 agreement for crude supply in exchange for projects, an Iraqi official was quoted as saying. Companies from China are expected to build an airport in Nasiriyah and 90,000 houses in Sadr City, in exchange for 100,000 barrels of Iraqi crude, Zawya quoted Sabah Abdul Lateef, an adviser to the Iraqi Prime Minister, as saying. These projects will be carried out in line with the Iraq-China agreement after all legal issues that have faced the agreement have been |
| Automakers Take Multi-Billion Profit Hit As Battery Metals BoomRising prices of critical electric vehicle (EV) metals are denting the profits of global automakers, just as a growing number of legacy carmakers are investing more in zero-emission vehicles. The rally in lithium and copper priceskey battery metalscomes at a time when the global auto industry faces increased supply chain pricing pressure from the chip shortage and higher prices of steel and other input materials. The rally in the prices of raw materials highlights the challenges the industry, and the world, face in accelerating |
| 5 things to know before the stock market opens TuesdayU.S. futures were under some pressure after the Dow, S&P 500 and Nasdaq logged a fifth straight session of gains and another day of record closes. |
| Many states are holding lotteries with cash or other prizes to boost vaccination rates. Here’s how much winners could owe in taxesWhether cash or another type of prize, the IRS expects winners of any lottery to pay taxes on the value of their jackpots. |
| NBA’s Oklahoma City Thunder arena will be called Paycom Center in 15-year dealThe agreement will include in-arena signage and a rooftop sign for the Oklahoma City downtown arena. |
| World’s 20 best airlines are named by air safety websiteFor the first time, the ratings review site AirlineRatings.com factored Covid-19 safety measures into its annual rankings of the top airlines in the world. |
| Global shipping industry disrupted again, this time by floods in Europe and ChinaThe floods in China and Europe are yet “another body blow” for global supply chains, the CEO of a shipping firm told CNBC on Monday. |
| Lack of audience playing into U.S. women’s gymnastics team’s second-place Olympic performance, Dominique Dawes saysThree-time Olympian Dominique Dawes delivers her insights into the women’s gymnastic team’s second-place qualifying performance behind Russia. |
| Jim Cramer sees a ‘second reopening’ trade in the recovery stocks“Once we start getting over this new outbreak, they’ll be the place to invest,” the “Mad Money” host said of travel, leisure, retail, energy and other stocks. |
| Cramer says three restaurant stocks can outperform as Covid fears rise“These stocks are exactly what you want to own if the great reopening is hitting a delta variant-induced snag,” the “Mad Money” host said. |
| Olympics ratings rebound following the drop in opening ceremonies viewershipThe Tokyo Games also averaged roughly 15.3 million total viewers for Saturday’s primetime coverage, including softball and skateboarding competitions. |
| Britney Spears’ attorney petitions to have a CPA replace James Spears in conservatorshipBritney Spears’ new attorney has filed a petition to replace her father James Spears with CPA Jason Rubin as the pop star’s sole conservator. |
| Brother of top Biden advisor lobbied Executive Office of the President on behalf of GMSteve Ricchetti’s brother Jeff lobbied the National Security Council on behalf of General Motors in the second quarter. |
| Consumer losses due to Covid-related fraud top $500 millionConsumers have reported losing more than $500 million to Covid-related fraud since the beginning of 2020, according to the Federal Trade Commission. |
| Some Americans with ‘long Covid’ may qualify for federal disability resources, Biden saysPresident Biden announced Monday that some Americans experiencing long-term effects of Covid may qualify for disability resources from the federal government. |
| The Market’s Next “Minsky Moment”The Market’s Next “Minsky Moment” Authored by Lance Roberts via RealInvestmentAdvice.com, In this past weekend’s newsletter, I discussed the issue of the markets next œMinsky Moment.  Today, I want to expand on that analysis to discuss how the Fed’s drive to create œstability  eventually creates œinstability. In 2007, I was at a conference where Paul McCulley, who was with PIMCO at the time, discussed the idea of a œMinsky Moment.   At that time, this idea fell on œdeaf ears  as markets were surging higher amidst a real estate boom. However, it wasn’t too long before the 2008 œFinancial Crisis  brought the œMinsky Moment  thesis to the forefront. So, what exactly is a œMinskey Moment? Economist Hyman Minsky argued that the economic cycle is driven more by surges in the banking system and credit supply. Such is different from the traditionally more critical relationship between companies and workers in the labor market. Since the Financial Crisis, the surge in debt across all sectors of the economy is unprecedented. |
| Tesla Q2 Call Wrap Up: Musk Jabs At Apple, Questions Full Self Driving, Says He Won’t Be On Future CallsTesla Q2 Call Wrap Up: Musk Jabs At Apple, Questions Full Self Driving, Says He Won’t Be On Future Calls As we reported yesterday after hours, Tesla released Q2 results that largely beat analyst estimates. Revenue $11.96B, beating the est $11.36B Adjusted EPS $1.45, beating the est 97c Free Cash Flow $619M, beating the estimate of a Negative $319.1M Automotive gross margin 28.4%, beating the estimate of 25.0% Cash and cash equivalents of $16.229BN, missing the estimate $16.55 billion With the financials out, all eyes were on the ensuing conference call, which – despite not being quite as absolutely insane as some past conference calls – still offered up some commentary and information that wasn’t included in the the company’s Q2 report. First, the lede: Elon Musk admitted on the conference call that he may not be attending future calls. By our estimation, the lack of mumbling through incoherent jargon could and half-truths could shave dozens of minutes off of future calls, keep them far more coherent and make them far less of a legal liability. œI will no longer default to doing earnings call. Obviously I’ll do the annual shareholder meeting, but I think that going forward I will most likely not be on earnings calls…” Musk said. He continued, stating he wouldn’t reappear on calls “unless there’s s … |
| Futures Slide As Asian Stocks Plunge To 2021 LowsFutures Slide As Asian Stocks Plunge To 2021 Lows Futures swung from all time highs to losses during the European session and then rebounded again as Asian stocks hit their lowest this year on a third straight session of selling in Chinese internet giants, while real bond yields hit another record low ahead of earnings from the most valuable companies on Wall Street and in the run-up to the two-day Federal Reserve meeting. S&P 500 E-minis were down 5 points, or 0.11%, at 07:15 am ET. Dow E-minis were down 77 points, or 0.22%, while Nasdaq 100 E-minis were up 3 points, or 0.02%.
More than one third of the S&P 500 is set to report quarterly results this week, led by Apple, Microsoft, Amazon and Alphabet, the four largest U.S. companies by market value. Apple, Alphabet and Microsoft, which were largely flat in premarket trade, are set to report earnings after the market closes, while Amazon will report results on Thursday. U.S.-listed Chinese stocks extended their declines as fears over more regulations in the mainland persisted. Alibaba and Baidu lost about 3.6% and 4 … |
| Massive Explosion Rocks German Chemical Complex, Residents Urged To Shelter InsideMassive Explosion Rocks German Chemical Complex, Residents Urged To Shelter Inside A massive explosion rocked an industrial yard for chemical companies in the western German city of Leverkusen on Tuesday, sending a column of black smoke into the air. Several people were injured, and five remain missing as local authorities urge residents to shelter indoors. According to Reuters, the explosion occurred around 0940 local time, causing a massive fire at a fuel depot at Chempark. The industrial park for chemicals is home to companies such as Bayer and Lanxess. Currenta, the company operating Chempark, said that several employees were injured, at least two of them severely, and that five people remain missing. Chempark tweeted, “for a previously unknown cause, there was an explosion in the Chempark Leverkusen. Plant fire brigade and air test vehicle in action. Residents, please go to closed rooms and keep doors and windows closed.” Residents felt the blast, with some saying the explosion rattled their homes. Some uploaded dramatic footage of the incident:
|
| Tesco offers £1,000 joining bonus for HGV driversThe supermarket chain is deploying the recruitment tactic amid a shortage in lorry drivers. |
| Covid: Insurance threat for pinged holidaymakersSome travel insurance policies will not cover cancellation costs for travellers told to self-isolate. |
| Stain remover demand rises as distancing shrinksVanish-maker Reckitt says the end of social distancing has led to a focus on appearance. |
| Tata Motors sees sharp cut in FY22 estimates yet analysts see up to 74% upsideAnalysts said demand for JLR wasn’t missing; it was strong at 1,10,000 units, but the company was unable to meet wholesale demand. |
| India’s only China dedicated fund suffers from Jinping’s tech purgeEdelweiss’ Greater China Equity Off-shore Fund, the only China-dedicated fund in India, has seen a substantial fall in its net asset value over the past six months due to the losses suffered by China’s technology companies. |
| Zomato may turn into a multibagger, the first initiation of coverage showsThis is in contrast to some of the sceptics, including Rakesh Jhunjhunwala and Raamdeo Agrawal. Valuation guru Aswath Damodaran believes Zomato shares are worth as low as Rs 41. |
| Therese Poletti’s Tech Tales: This could be the peak of the tech boom ” Here’s what to look forAs tech companies begin reporting more huge profit and sales totals this week, the question to ask is how long the heady growth can continue. |
| London Markets: After a stellar IPO, Moonpig shares come back down to EarthShares of Moonpig are tumbling after results triggered fears of a slowdown. |
| Earnings Results: Tesla tops $1 billion in profit, delays Semi launchTesla Inc.’s profit topped $1 billion for the first time in the company’s history and its sales nearly doubled, zooming past Wall Street expectations, but there was no stock rally late Monday as a œlimited battery supply and the ongoing chip shortage crimped the Silicon Valley electric-car maker’s output and forced it to delay the launch of its commercial truck. |
Earnings Summary for Today
leading Stock Positions
Current Commodity Prices
Commodities are powered by Investing.com
Current Currency Crosses
The Forex Quotes are powered by Investing.com.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
