Headlines:
Texas braces for cold snap as natgas pipelines freeze; power blackout concerns mount.
Amazon stock soars 18% in late trading after earnings top estimates.
U.S. oil prices top $90 a barrel for the first time since 2014.
Ford reports mixed fourth-quarter results as chip shortage eases.
Wall Street began today’s session opening sharply down. But, an adage says all gaps will be closed, so there is hope the Bull Run will continue later. Unfortunately, the session beginning got worse as the day rolled on, taking the tech equities with it.
Amazon reports a 9% sales increase in the fourth quarter and a big profit gain on Rivian stake. Also, in the news, Facebook stock plummets 26%, on pace for its biggest one-day drop ever. CNBC ProSantoli: Facebook’s fall is like ‘Marlboro Friday’ in 1993.
Economic releases today:
- US Census reported that December 2021 inflation-adjusted manufactured goods new orders have had no growth year-over-year. Since July 2021, there has been little inflation-adjusted growth in this sector.
- The Bureau of Labor Statistics says 4th quarter 2021 year-over-year growth has grown 2.0% whilst labor costs have increased by 3.1%. The bottom line is that labor costs are increasing faster than productivity. The NFIB’s Chief Economist Bill Dunkelberg stated “Reports of owners raising compensation continues at record-high levels to attract applicants to their open positions.”
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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ConocoPhillips Worried About U.S. Oil Production GrowthIf you’re not concerned about the rate at which U.S. crude oil production could grow this year, you should be, ConocoPhillips Chief executive Officer Ryan Lance said on a conference call on Thursday, according to Bloomberg. U.S. crude oil production has grown from 11 million bpd at the beginning of 2021 to 11.7 million bpd at the beginning of 2022. But production in the United States could see sharper growth this year, Lance noted. According to Lance, U.S. crude oil production could grow by as much as 900,000 bpd over the course of 2022this Read more at: https://oilprice.com/Latest-Energy-News/World-News/ConocoPhillips-Worried-About-US-Oil-Production-Growth.html |
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Plastic Will Fuel Oil Demand For Years To ComeAs Big Oil worries about the looming threat of renewable alternatives, with governments and international organizations putting pressure on countries and companies to curb fossil fuel production, petrochemicals will become increasingly important. With oil majors continuing to invest in oil and gas projects, they want to be sure that their new exploration and production operations pay off in the long run, an issue thats becoming increasingly uncertain. However, as the demand for petrochemicals increases worldwide, energy firms can be safe Read more at: https://oilprice.com/Energy/Energy-General/Plastic-Will-Fuel-Oil-Demand-For-Years-To-Come.html |
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Blackrock: Oil Firms With Net-Zero Plans Are An Under-Appreciated OpportunityBlackRock believes that carbon-intensive companiesincluding in oil and gaswhich have plans for decarbonization could be an underappreciated opportunity for investors, the worlds biggest asset manager said in a letter to clients. We believe an underappreciated opportunity for investors seeking to drive the transition lies in identifying carbon-intensive companies that are positioning themselves to lead decarbonization within their industries, BlackRock said in its note How to invest in the Read more at: https://oilprice.com/Latest-Energy-News/World-News/Blackrock-Oil-Firms-With-Net-Zero-Plans-Are-An-Under-Appreciated-Opportunity.html |
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Who Is Responsible For Cyberattacks On Europes Oil IndustryFollowing news of major cyberattacks on German-based oil storage companies, there are now reports of similar attacks in the Netherlands and Belgium. In recent days, reports emerged that the German-based facilities of the Oiltanking GmbH Group and Mabanaft Group had come under attack. Last Saturday, the companies stated, they had IT systems report incidents. The total impact of the attacks remains unclear, but external parties are working to deal with the situation and understand the threat. Most emphasis is currently being put on the restoration Read more at: https://oilprice.com/Energy/Energy-General/Who-Is-Responsible-For-Cyberattacks-On-Europes-Oil-Industry.html |
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The Car Trend That Took Off During CovidMonthly car rental and car-sharing companies are popping up across Asia, offering youths a new way to get access to a car without having to actually own it. And its not just basic cars, these companies are also offering Teslas and other electric models, as well as traditionally-fuelled high-end options. The trend of car sharing and subscriptions has been on the rise since the pandemic, but now theres an increasing number of companies from major automakers to startups investing in the Asian industry. In Singapore, Read more at: https://oilprice.com/Energy/Energy-General/The-Car-Trend-That-Took-Off-During-Covid.html |
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Ferrari Floored By Rising Commodities PricesFerrari NV announced that soaring commodity prices would begin affecting the prices of its new supercars. The average cost for an Italian supercar, made by Ferrari, is between $200k-$400k, making it one of the most expensive production automobiles globally (besides French supercar maker Bugatti). During a 60-minute earnings call with investors on Wednesday, Ferrari discussed better-than-expected fourth-quarter earnings as shipments jumped during the pandemic. However, the company explained that rising commodity costs would result in continued Read more at: https://oilprice.com/Latest-Energy-News/World-News/Ferrari-Floored-By-Rising-Commodities-Prices.html |
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Ford shares fall on fourth-quarter earnings and 2022 guidanceFord Motor reported earnings after the bell. Here are the results. Read more at: https://www.cnbc.com/2022/02/03/ford-f-earnings-q4-2021.html |
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Nissan taps ‘Schitt’s Creek,’ Marvel Cinematic Universe stars for action-packed Super Bowl adNissan’s Super Bowl ad features “Schitt’s Creek” stars Eugene Levy and Catherine O’Hara as well as Marvel Cinematic Universe’s Brie Larson and others. Read more at: https://www.cnbc.com/2022/02/03/super-bowl-2022-ad-nissan-taps-schitts-creek-marvel-stars.html |
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Going abroad? Your destination may require travel insuranceAbout a dozen countries have added an insurance mandate for tourists during the pandemic era, to cover costs related to Covid-19. Read more at: https://www.cnbc.com/2022/02/03/going-abroad-your-destination-may-require-travel-insurance.html |
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Used-car prices may be easing, research showsIn the last few weeks of January, the average price of used cars began to slide, which may signal a return to a more normal market, research shows. Read more at: https://www.cnbc.com/2022/02/03/used-car-prices-may-be-easing-research-shows.html |
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Cramer’s Investing Club: Buy Eli Lilly’s drop on drug delay news because it won’t matter long termWe see the pushback of donanemab’s accelerated approval submission as just a speed bump. Read more at: https://www.cnbc.com/2022/02/03/cramers-investing-club-buy-eli-lillys-drop-on-drug-delay-news-because-it-wont-matter-long-term.html |
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Premixed cocktails steal share from beer and hard seltzer, propelling surging growthPremixed cocktails were the fastest-growing spirits category in 2021, according to the Distilled Spirits Council of the U.S. Read more at: https://www.cnbc.com/2022/02/03/premixed-cocktails-steal-share-from-beer-and-hard-seltzer-propelling-surging-growth.html |
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What investors should know ahead of Ford’s fourth-quarter earnings ThursdayWall Street analysts estimate Ford will post a profit of 45 cents per share in adjusted earnings and $35.5 billion in revenue, according to Refinitiv estimates. Read more at: https://www.cnbc.com/2022/02/03/ford-earnings-what-investors-should-know-ahead-of-q4-results.html |
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NBA unveils Kobe Bryant All-Star Game trophy, two years after death of basketball iconThe National Basketball Association revealed new trophies for its All-Star Game, including a massive change to the Kobe Bryant trophy awarded to the game’s MVP. Read more at: https://www.cnbc.com/2022/02/03/nba-unveils-kobe-bryant-all-star-game-trophy-two-years-after-his-death.html |
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Offshore wind powerhouse Siemens Gamesa sees its value nearly halve in a yearSiemens Gamesa has cut its guidance for the coming year after a turbulent period that has seen its market capitalization nearly halve. Read more at: https://www.cnbc.com/2022/02/03/siemens-gamesa-sees-revenue-drop-lowers-guidance.html |
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Satellite-imagery specialist ICEYE raises $136 million to better monitor catastrophes like floodsFinnish satellite-imagery venture ICEYE closed an $136 million round of venture capital fundraising, led by U.K. fund Seraphim Space. Read more at: https://www.cnbc.com/2022/02/03/iceye-raises-136-million-to-build-out-satellite-catastrophe-products.html |
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Merck expects to sell $5 billion to $6 billion of its new Covid treatment pill in 2022CEO Rob Davis said Merck is on track to fulfill its commitment in the coming days of delivering 3.1 million courses of its Covid treatment pill nationwide. Read more at: https://www.cnbc.com/2022/02/03/merck-mrk-earnings-q4-2021.html |
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5 things to know before the stock market opens ThursdayNasdaq futures sank more than 2% on Thursday, dragged down by an over 20% premarket decline in shares of Facebook-parent Meta. Read more at: https://www.cnbc.com/2022/02/03/5-things-to-know-before-the-stock-market-opens-thursday-feb-3.html |
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Amazon Explodes 18% Higher On Solid Earnings, AWS Beat, Prime Price IncreaseAmazon Explodes 18% Higher On Solid Earnings, AWS Beat, Prime Price IncreaseWith the bulk of the FAAMG stocks – which is now GAMMA following Facebook’s rebranding to Meta – having reported Q4 results (some great, like GOOLG and MSFT, some, like Facebook, terrible), investors were keenly looking to Amazon earnings, where the biggest question for Amazon is how sustainable are the growth trends that boosted its performance during the pandemic. The Internet giant was one of the biggest beneficiaries of shifts in consumer and business behavior last year while continuing to grab market share in cloud. As Bloomberg notes, 2022 is a critical year for new Amazon CEO Andy Jassy, who is facing a declining stock price, slowing e-commerce growth, rising costs, and labor concerns in New York and Alabama. He’s also facing inflation, new consumer technology rivals and third-party product delays in the early days of his first full year as the company’s top executive. Many analysts are expecting a price hike to Amazon Prime given inflation. Some have speculated that a price increase could hit a $139 price annually, which would come out to about $2 per month extra for consumers. In 2018, the company raised the price of the service from $99 per year to $119 per year. And the prior hike to that one was in 2014, when it increased Prime’s annual cost to $99 from $79.So, if the four year pattern holds, we could see Amazon raise the Prime’s price again either tonight or in the upcoming months. While the Meta fiasco has certainly left a bad taste in investors’ mouths, with options implying a 5.5% move after hours, there’s a lot of bad already baked into Wall Street expectations around Amazon, s … Read more at: https://www.zerohedge.com/markets/amazon-explodes-18-higher-solid-earnings-aws-beat-prime-price-increase |
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Tech Wreck Meta-stasizes To Broader Market; Credit Starts To CrackTech Wreck Meta-stasizes To Broader Market; Credit Starts To CrackToday was the worst day for a balanced bond/stock portfolio since Feb 2021 as stocks puked and yields spiked as Risk-Parity funds puked as Zuckerberg’s disaster forced deleveraging and derisking everywhere…
While Facebook’s stock was probably up in the metaverse, in the cold, hard reality in which us plebs live, Meta lost almost $250 billion in market cap today, losing its membership of the ‘four commas’ club and falling to the same market cap as Nvidia… Read more at: https://www.zerohedge.com/markets/tech-wreck-meta-stasizes-broader-market-credit-starts-crack |
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Crypto Bank Silvergate’s Acquisition Of Diem Assets A “Significant Positive”, Analysts SayCrypto Bank Silvergate’s Acquisition Of Diem Assets A “Significant Positive”, Analysts SayOne of our favorite stocks, crypto friendly bank Silvergate, has officially acquired the Diem stablecoin assets that once belonged to Facebook. And despite the appearance that it could have marked the end of Diem’s road of progress, the move could actually be just the opposite: a net positive for the stablecoin, CoinDesk wrote this week, citing Wedbush.
Wedbush commented on the acquisition by Silvergate this week, calling it a “significant positive”. Per CoinDesk, here are some of the key points of Wedbush’s analysis of the acquisition: The distinction about who controls the payment network is a significant positive, Wedbush said, and it puts Silvergate in “pole position” to develop distribution partnerships with marqu … Read more at: https://www.zerohedge.com/markets/crypto-bank-silvergates-acquisition-diem-assets-significant-positive-analysts-say |
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Texas Braces For Cold Snap As NatGas Pipelines Freeze; Power Blackout Concerns MountTexas Braces For Cold Snap As NatGas Pipelines Freeze; Power Blackout Concerns MountArctic air has descended into Texas this week as temperatures dive well below freezing. Texas officials have reassured the public numerous times the primary grid operator for Texas, the Electric Reliability Council of Texas (ERCOT), will have the capacity to supply energy to households and businesses as heating demand increases.
“The grid is ready, and the lights will stay on for Texans,” Peter Lake, chairman of the Public Utility Commission of Texas, said in a statement Wednesday afternoon. He said earlier in the day that ERCOT “doesn’t anticipate any rolling blackouts at all.” Weather forecasts show a deep freeze in the Lone Star State through Saturday. Average temperatures have dove from 60 degrees Ferinhight on Jan. 31 to as low as 25 degrees Ferinhight on Friday. An ice storm is also hitting the state and will continue through the end of the week. Read more at: https://www.zerohedge.com/commodities/texas-braces-cold-snap-natgas-pipelines-freeze-power-blackout-concerns-mount |
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Don’t ask for a big pay rise, warns Bank of England bossAndrew Bailey says a “painful” period of prices rising faster than wages is needed to control inflation. Read more at: https://www.bbc.co.uk/news/business-60206564?at_medium=RSS&at_campaign=KARANGA |
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Soaring prices: ‘I may have to move back in with my parents’People from across the UK tell BBC News how they feel about soaring energy bills. Read more at: https://www.bbc.co.uk/news/business-60243463?at_medium=RSS&at_campaign=KARANGA |
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Rishi Sunak defends response as energy bills soarThe chancellor says offering help of £350 to most households will take the “sting” out of the rise. Read more at: https://www.bbc.co.uk/news/business-60242432?at_medium=RSS&at_campaign=KARANGA |
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Analysts call out Jubilant Foodworks for not disclosing SSSG dataAs per analysts tracking the company, Jubilant would now only disclose Like-for-Like (LFL) growth and not SSSG as it believes that LFL is a far more accurate indicator of their underlying growth Read more at: https://economictimes.indiatimes.com/markets/stocks/news/analysts-call-out-jubilant-foodworks-for-not-disclosing-sssg-data/articleshow/89321635.cms |
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Tata Steel Q3 Preview: Expect profit to double YoY, but shrink sequentiallyAnalysts pegs net profit for the quarter at Rs 7,905 crore against Rs 3,922 crore in the corresponding quarter in the last year Read more at: https://economictimes.indiatimes.com/markets/stocks/earnings/tata-steel-q3-preview-expect-profit-to-double-yoy-but-shrink-sequentially/articleshow/89326234.cms |
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HCL Tech, NMDC among 6 stock ideas that can deliver solid short-term profitsAfter the event risk of Budget was over, many stocks surged, signalling breakouts from a trading zone. Some of these stocks are primed for further rallies. Here are six stocks that analysts believe can warm your pockets in the short term: Read more at: https://economictimes.indiatimes.com/markets/stocks/news/hcl-tech-nmdc-among-6-stock-ideas-that-can-deliver-solid-short-term-profits/money-making-ideas/articleshow/89313444.cms |
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Deep Dive: Russian stocks have 35% upside when the Ukraine crisis ‘de-escalates.’ These 2 ETFs give you a way to playAnalysts at Pictet Wealth Management point to previous Ukraine conflict resolutions to support a rebound. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-78E2-9C512053E5E7%7D&siteid=rss&rss=1 |
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: Amazon increases Prime subscription price to $139 a yearAmazon.com Inc. is increasing the price of its Prime subscription service for the first time since 2018. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-78FD-22359A25C717%7D&siteid=rss&rss=1 |
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Earnings Results: Unity Software stock rallies 10% as earnings, revenue top estimatesUnity Software Inc. shares surged in the extended session Thursday after the gaming-engine company’s earnings and revenue topped Wall Street expectations. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-78FC-9296EC490C78%7D&siteid=rss&rss=1 |
