Wall Street remained green until 11 AM with NASDAQ up 1.0%, then craters at the 3 PM mark. The DOW closed down 313 points, matching yesterday’s closing. NASDAQ closed down 1.3%, and the S&P 500 closed down 1.1%. NASDAQ gives up a 2% gain turns negative in the final hour of trading. Bitcoin a “bit” higher at 41800 and Dogecoin steady at $0.1647.
Other news, OPECs Oil Market Share In India Drops to 15-Year Low and Peloton to halt production of its Bikes treadmills as demand wanes. According to internal documents obtained by CNBC, Peloton is temporarily stopping the production of its connected fitness products. The firm’s shares fell more than 20% as investors worry that demand for its expensive exercise machines is waning.
Shares of autonomous driving tech company Luminar rise on the Mercedes-Benz deal, and investing legend Jeremy Grantham turns apocalyptic and expects stocks to crater 50% in the largest wealth destruction in U.S. history.
As usual, we have included below the headlines and news summaries moving the markets today.
The Market in Perspective
| Here are the headlines moving the markets. | |
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Is $100 Oil On The Horizon?OANDAs senior analyst Craig Erlam has told City A.M. that oil prices could reach $100 per barrel during the first quarter, following intense rallies over recent days. His bullish forecast follows upbeat commentary on prices published in his latest market update, where he argued tightening supplies amid rebounding demand meant high prices are here to stay. Erlam said: This imbalance has led to surging prices which will further pressure households and businesses already fighting high inflation Whats more, not only does the rally Read more at: https://oilprice.com/Energy/Oil-Prices/Is-100-Oil-On-The-Horizon.html |
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BP, Rosneft Were Only Firms With Over 1 Billion Barrel Oil Finds In 2021BP and Rosneft were the only companies to have delivered over 1 billion barrels of oil equivalent in discoveries last year due to their exposure in Russia which yielded 48 percent of the worlds discovered resources, Westwood Global Energy Group said in a new report on 2021 high impact exploration. Overall, the volume of discovered resources globally was disappointing, dropping from 19 billion barrels of oil equivalent (boe) in 2020 to just 6.6 billion boe in 2021, Westwood said. Of the discovered resources last year, 36 percent were oil Read more at: https://oilprice.com/Latest-Energy-News/World-News/BP-Rosneft-Were-Only-Firms-With-Over-1-Billion-Barrel-Oil-Finds-In-2021.html |
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Nuclear Energy Investments Are Set To SoarNuclear power can be a polarizing energy source, but as countries seek greener, low-carbon alternatives to fossil fuels, investments in nuclear are projected to soar in the coming years. Rystad Energy research indicates that $91 billion will be invested in the global nuclear sector by the end of next year as its popularity continues an upward trend in heavily populated countries such as China, India, and Russia. Investments in nuclear are expected to total $45 billion in 2022 and $46 billion in 2023, up from $44 billion in 2021, with 52 reactors Read more at: https://oilprice.com/Energy/Energy-General/Nuclear-Energy-Investments-Are-Set-To-Soar.html |
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Whats Next For The Electric Vehicle Revolution?Around the world EV sales shot up throughout 2021 as we faced global oil price increases as well as petrol and diesel shortages. When combined with government mandates to curb the sale of traditionally fuelled vehicles within the next decade and national subsidies to encourage EV uptake, it made EVs that much more appealing. Record numbers of sales were achieved in Europe and going into 2022 most major automakers are planning to put their mark on the industry, manufacturing their own EV models. But how did the EV market fare in 2021 and what can Read more at: https://oilprice.com/Energy/Energy-General/Whats-Next-For-The-Electric-Vehicle-Revolution.html |
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OPECs Oil Market Share In India Drops to 15-Year LowOPECs share of crude imports in India dropped last year to the lowest in at least 15 years, as the worlds third-largest oil importer bought more crude from North America to offset the inability to buy from Iran and Venezuela, Reuters has estimated, based on data obtained from industry sources. OPEC continued to hold the largest share of Indias oil imports, but that share fell to 70 percent last year. To compare, back in 2008, Indias crude oil imports from the organizations producers stood at 87 percent. India Read more at: https://oilprice.com/Latest-Energy-News/World-News/OPECs-Oil-Market-Share-In-India-Drops-to-15-Year-Low.html |
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New South American Energy Alliance Could Be A Gamechanger For Oil MarketsThe hottest oil countries in South AmericaGuyana, Suriname, and Brazilare set to discuss later this week the setting up of a new energy alliance and building infrastructure across the countries to share their growing oil and gas resources. The heads of state of Brazil, Guyana, and Suriname will discuss on Friday joint infrastructure and energy projects that would boost the countries economies and help oil equipment transportation, exports, and imports. Before the three-way summit, Brazilian President Jair Bolsonaro is Read more at: https://oilprice.com/Energy/Energy-General/New-South-American-Energy-Alliance-Could-Be-A-Gamechanger-For-Oil-Markets.html |
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SFPD officers kill person armed with 2 guns at SFO BART station: PoliceSan Francisco police officers shot and killed a person armed with two guns in front of the BART station at San Francisco International Airport’s international terminal, according to police. Read more at: https://www.cnbc.com/2022/01/20/sfpd-officers-kill-person-armed-with-2-guns-at-sfo-bart-station-police.html |
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Peloton to halt production of its Bikes, treadmills as demand wanesPeloton is temporarily halting production of its connected fitness products, according to internal documents obtained by CNBC. Read more at: https://www.cnbc.com/2022/01/20/peloton-to-pause-production-of-its-bikes-treadmills-as-demand-wanes.html |
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American Airlines London-bound flight turns back to Miami after passenger refuses to wear maskAmerican Airlines Flight 38, with 129 passengers and 14 crew members, turned back to Miami about an hour into the trip. Read more at: https://www.cnbc.com/2022/01/20/american-airlines-flight-returns-to-miami-after-passenger-refused-to-wear-mask.html |
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FAA approves more of U.S. fleet for low visibility landings after 5G deployment, some flights canceledThe FAA has so far cleared 78% of the U.S. fleet to land in low-visibility conditions. Read more at: https://www.cnbc.com/2022/01/20/faa-warns-5g-related-landing-restrictions-could-divert-flights-as-snow-hits-airports.html |
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Walmart taps Tom Ward to head U.S. e-commerce division as Casey Carl departsThe big-box retailer has seen online sales jump during the pandemic, but is now looking for ways to keep that momentum going. Read more at: https://www.cnbc.com/2022/01/20/walmarts-top-us-e-commerce-chief-casey-carl-is-leaving.html |
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Tom Cruise space movie producers sign deal with Axiom to build studio in orbitCalled SEE-1, the module would be “the world’s first content and entertainment studios and multipurpose arena in space.” Read more at: https://www.cnbc.com/2022/01/20/tom-cruise-movie-producers-sign-axiom-deal-for-space-production-studio.html |
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Shares of autonomous driving tech company Luminar surge on Mercedes-Benz dealAs part of the agreement, Mercedes-Benz is expected to acquire up to 1.5 million shares of Luminar. Read more at: https://www.cnbc.com/2022/01/20/shares-of-autonomous-driving-tech-company-luminar-surge-on-mercedes-benz-deal-.html |
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McDonald’s expands test of McPlant burger created with Beyond MeatMcDonald’s is expanding its test of the plant-based McPlant burger, created as part of its partnership with Beyond Meat. Read more at: https://www.cnbc.com/2022/01/20/mcdonalds-expands-test-of-mcplant-burger-created-with-beyond-meat.html |
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5 things to know before the stock market opens ThursdayU.S. stock futures bounced Thursday, one day after the Nasdaq finished in correction territory, down more than 10% from its record high close in November. Read more at: https://www.cnbc.com/2022/01/20/5-things-to-know-before-the-stock-market-opens-thursday-jan-20.html |
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Stocks making the biggest moves premarket: Travelers, American Airlines, Signet Jewelers and moreThese are the stocks posting the largest moves before the bell. Read more at: https://www.cnbc.com/2022/01/20/stocks-making-the-biggest-moves-premarket-travelers-american-airlines-signet-jewelers-and-more.html |
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GOP and Democratic governors reinstate Covid emergency orders to combat omicron surgeOfficials from Maryland, Virginia, New Jersey, Kansas and California have all announced new or renewed Covid emergency orders since the start of the month. Read more at: https://www.cnbc.com/2022/01/20/gop-and-democratic-governors-reimpose-covid-emergency-orders-to-fight-omicron-surge.html |
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Scotland’s offshore wind sector gets $951 million boost as parts of seabed leased outOver 70 applications were made to lease part of Scotland’s seabed for wind farm developments. Read more at: https://www.cnbc.com/2022/01/20/scotwind-scotlands-offshore-wind-sector-951m-boost-after-leasing-round.html |
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American Airlines posts slightly higher revenue, narrower loss than expectedDelta and United previously warned that the omicron spread would delay a rebound in travel. Read more at: https://www.cnbc.com/2022/01/20/american-airlines-aal-reports-4q-21-results.html |
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Stocks Pump’n’Dump, Bitcoin Jumps As US Macro SlumpsStocks Pump’n’Dump, Bitcoin Jumps As US Macro SlumpsChina cut rates overnight, US jobless claims spiked, Existing home sales plunged, Peloton puked, and geopolitical malarkey remains at ’11’… so it really shouldn’t be a surprise that stocks and bond yields were lower on the day (but having been conditioned to BTFD for the last 12 years, US equity market investors got another slap back to reality today).
Futures rallied hard on the ugly jobless claims data as algos lifted them to yesterday’s late-day high stops and tomorrow’s gamma-heavy Op-Ex provided the ammunition, but its all went pear-shaped with a massive puke that felt very forced. Small Caps and Nasdaq screamed up 2% at the day’s highs, only to give it all back and then some in the last hour… Read more at: https://www.zerohedge.com/markets/bitcoin-jumps-stocks-pumpndump-us-macro-slumps |
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Maxwell Defense Files Motion For New Trial Over Sex Trafficking ChargesMaxwell Defense Files Motion For New Trial Over Sex Trafficking ChargesAuthored by Dave Paone via The Epoch Times (emphasis ours), Ghislaine Maxwell’s defense team filed a motion in federal court on Dec. 19 requesting a new trial for the British socialite.
Accompanying exhibits for the new trial request are under seal. At the center of the motion is Juror No. 50, who had recently stated publicly he was a victim of childhood sexual abuse an … Read more at: https://www.zerohedge.com/political/maxwell-defense-files-motion-new-trial-over-sex-trafficking-charges |
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Bank of America Gloats After S&P Hits Its Bearish Year-End Price Target After Just 3 WeeksBank of America Gloats After S&P Hits Its Bearish Year-End Price Target After Just 3 WeeksYesterday, we reported that Morgan Stanley’s chief equity strategist – and biggest Wall Street bear with a handful of exceptions – took a preemptive victory lap, and capitalized on the recent market rout which has left his bullish colleagues scrambling who to revise their narrative, to predict even more pain for stocks in the first half including a 10-20% correction in H1, even though technically at 4,500, the S&P is still some 100 points away from his 2022 base case target for the S&P500. But if Wilson’s victory lap may seem premature in retrospect, especially if stocks soar from here, Bank of America’s chief equity strat, Savita Subramanian has every reason to float – while not nearly as bearish as Wilson, her year-end price target of 4,600 has already been hit, prompting a difficult question: “Is it 2023 yet?”
As Subramanian gloats, “the S&P 500 now ho … Read more at: https://www.zerohedge.com/markets/bank-america-gloats-after-sp-hits-its-bearish-year-end-price-target-after-just-3-weeks |
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Investing Legend Turns Apocalyptic, Expects Stocks To Crater 50% In Largest Wealth Destruction In US HistoryInvesting Legend Turns Apocalyptic, Expects Stocks To Crater 50% In Largest Wealth Destruction In US HistoryIt was several years ago when Jeremy Grantham quietly turned from stock bull to vocal permabear, and while his market notes turned breathlessly alarmist (if only to those who were long his multi-billion fund GMO), such as this from June 2020 “Stock-market legend who called 3 financial bubbles says this one is the ‘Real McCoy,’ this is ‘crazy stuff’”, it wasn’t until early 2021 that Grantham’s warnings of an imminent crash became especially shrill… and spectacularly wrong. Recall, back in January 2021, Grantham wrote that “Bursting Of This “Great, Epic Bubble” Will Be “Most Important Investing Event Of Your Lives”, while was followed by warnings of a “Spectacular” Crash In “The Next Few Months.” Needless to say, no crash followed as the Fed and other central banks went all in on stabilizing the market, resulting in an epic year for risk assets which closed 2021 at all time highs, while GMO suffered not only steep losses but also substantial redemptions, a humiliating outcome for Grantham who had previously called the bursting of both the dot com and housing bubbles, but failed to account for just how determined the Fed is to avoid another bubble bursting. Read more at: https://www.zerohedge.com/markets/investing-legend-turns-apocalyptic-expects-stocks-crater-50-largest-wealth-destruction-us |
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BT to introduce inflation-busting price risesMost broadband and phone bills will rise by more than 9% at the end of March, BT says. Read more at: https://www.bbc.co.uk/news/business-60057282?at_medium=RSS&at_campaign=KARANGA |
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Peloton shares dive on report it halted productionThe firm’s shares fell more than 20% as investors worry that demand for its pricey exercise machines is waning. Read more at: https://www.bbc.co.uk/news/business-60077335?at_medium=RSS&at_campaign=KARANGA |
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Bankers told to return to desks as restrictions endStandard Chartered and HSBC ask staff to come back as business groups welcome end of home working. Read more at: https://www.bbc.co.uk/news/business-60065207?at_medium=RSS&at_campaign=KARANGA |
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MSCI rejig could be non-event; this stock may replace IOC in Nifty, says EdelweissThe brokerage does not expect any inclusion or exclusion in the forthcoming quarterly review Read more at: https://economictimes.indiatimes.com/markets/stocks/news/msci-rejig-could-be-non-event-this-stock-may-replace-ioc-in-nifty-says-edelweiss/articleshow/89019066.cms |
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RBI says liquidity rebalancing evolved satisfactorily; holds repo auction amid GST outflow“As stated in Governor’s statement of December 8, 2021, the Reserve Bank has been rebalancing the surplus liquidity in the system by shifting it out of the fixed-rate overnight reverse repo window into the variable rate reverse repo (VRRR) auctions of longer maturity. Overall, this rebalancing has proceeded on a pre-announced glide path and has evolved satisfactorily,” the RBI said through a press release on its website. Read more at: https://economictimes.indiatimes.com/markets/bonds/rbi-says-liquidity-rebalancing-evolved-satisfactorily-holds-repo-auction-amid-gst-outflow/articleshow/89019436.cms |
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230% in 15 days! This ‘market driven’ stock is hitting the roof everydayA 230 per cent surge following 15 straight days of upper circuits has put AK Spintex among the top of 2022’s multibagger list. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/230-in-15-days-this-market-driven-stock-is-hitting-the-roof-everyday/articleshow/89012385.cms |
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Deep Dive: This sector of the S&P 500 is expected to show the fastest sales and dividend growth in 2022 and 2023Some stocks have been hit hard this year from the fear of rising interest rates, but Wall Street expects plenty of growth ahead for certain market sectors. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7890-D1CC4A7960A3%7D&siteid=rss&rss=1 |
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The Wall Street Journal: U.S. clears Baltic allies to send American-made weapons to Ukraine as Russian standoff intensifiesBiden administration decision will enable Estonia, Lithuania and Latvia to provide Javelin antitank weapons and Stinger air-defense systems to Ukrainian forces. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7898-07F8006A1B48%7D&siteid=rss&rss=1 |
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The Ratings Game: Walmart could get squeezed alongside its ‘middle of the middle’ U.S. shoppers, analysts sayKeyBanc Capital Markets takes a look ahead at internet retail for 2022, downgrading Walmart and WW International, but upgrading Etsy Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7894-3B77A2759A78%7D&siteid=rss&rss=1 |
Jeffrey Epstein associate Ghislaine Maxwell sits as the guilty verdict in her sex abuse trial is read in a courtroom sketch in New York City, on Dec. 29, 2021. (Jane Rosenberg TPX Images of the day/Reuters)On Dec. 29 Maxwell was found guilty of five out of six sex-trafficking charges on behalf of the late convicted pedophile Jeffrey Epstein.
