Headlines:
Safe Haven Assets Set To Shine As Ukraine Crisis Continues,
Crypto Jumps, Stocks Dump ‘n ‘Pump As Cracks Appear In Global Financial System ‘Plumbing,’
Wall Street’s Biggest Bear: We Are On Track For An Extremely Challenging March & April,
Shell To Sever Gazprom Links In Ukraine Crisis.
Bond Report: 2-Year Treasury Rate Marks The Largest Daily Drop-In Two Years As Putin Puts Nuclear Forces On Alert Amid Russian Sanctions.
Stock futures sank, cryptocurrencies held firm, Treasuries rallied, and oil spiked to begin what will be an interesting week of the trading week for investors. (If you are so inclined to gamble). The ongoing invasion in Ukraine has stoked increasing uncertainty over the outlook for global financial markets. Even Switzerland breaks its famous neutrality status to follow the E.U.’s sanctions over the Ruskies invasion of Ukraine.
The Ruble is rubble, global markets roll, and oil prices shoot skyward. A sitcom starring Comrade Putin and his Dedovshchina “Little Green Men.” They star in a reality sitcom about a mentally challenged creature trying to break out of self-imposed confinement.
The financial fallout resulting from the invasion of Ukraine is escalating rapidly. Increasingly more problematic with an intensification of violence and battles throughout the country. However, the U.S. stock markets seem to be waiting for the “other” shoe to drop. I won’t say trading is slowing, but the smart money seems to be waiting. I can’t blame anyone sitting on the sidelines now as the U.S. economy is in fair shape. In truth, I believe Ivan would have to launch a nuclear attack before the Global Market would rollover.
WTI crude hit a high of 100.45 then settled at a resistance of 95.68. This movement was attempted before but pushed back to the resistance line. Brent oil prices end above $100 a barrel on new escalating Russia sanctions. Rising crude prices are showing up at the gas pumps. The average gas price in the U.S. has jumped 10 cents, to $3.64/gallon, in the past two weeks.
The U.S. dollar high was at 0800 EST falling briefly to 96.78, finally settling at 97.00. Gold is considered a safe haven when trading in uncertain stock markets, and the precious metals reflect. Gold today rose to 1918, then fell to 1890, settling at 1909. Bitcoin started with a low of 41480, ranging higher to 41800, settling at 41700.
Today, red volume is considered below average, accounting for the relaxed sideways trading. The S&P 500 briefly saw green around 11 am only to sea-saw down at a leisurely pace. While off its session lows, the DOW barely halved its losses for the session.
As usual, we have included below the headlines and news summaries moving the markets today.
The Market in Perspective
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Supreme Court Hears Case That Could Derail Bidens Climate PolicyThe U.S. Supreme Court is hearing a case on Monday brought by Republican states and coal companies over how much authority the Environmental Protection Agency (EPA) has to order emissions reductions at power plants. The case could be a significant hurdle to future climate policies of the Biden Administration and could set a precedent on whether federal agencies have the authority to impose carbon dioxide limits on power plants. The conservative-majority Supreme Court will hear arguments today over whether the EPA has the authority to regulate greenhouse Read more at: https://oilprice.com/Latest-Energy-News/World-News/Supreme-Court-Hears-Case-That-Could-Derail-Bidens-Climate-Policy.html |
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New Yorkers Lash Out At ConEdison Over Soaring Electricity BillsSky-highelectric bills on the front page. Europe? The U.K? No, just north of New York City, where local politicians criticized Consolidated Edison of NY, the local electric utility. And further, local business people noted that they had warned of this potential problem a decade ago when the last governor decided to close down the nearby nuclear power plant, Indian Point. Some customers complain that their supply bill (for their electricity usage, not the lines or wires) has tripled in past months. For the typical consumer this is Read more at: https://oilprice.com/Energy/Energy-General/New-Yorkers-Lash-Out-At-ConEdison-Over-Soaring-Electricity-Bills.html |
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Safe Haven Assets Set To Shine As Ukraine Crisis ContinuesRussias invasion of Ukraine, which is having devastating human consequences, has increased the risk of a stagflation environment one of slowing economic growth but high inflation. How should investors prepare for this possible scenario? Our analysis reveals which asset classes are likely to outperform if it comes to pass. In general, there are four different phases of the business cycle based on the evolution of output: recovery, expansion, slowdown and recession. The table below shows the average real (inflation-adjusted) Read more at: https://oilprice.com/Latest-Energy-News/World-News/Safe-Haven-Assets-Set-To-Shine-As-Ukraine-Crisis-Continues.html |
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Can The U.S. Replace Russian Oil Imports?Following Russias invasion of Ukraine, one of the issues being discussed a lot in the West is what an ongoing military conflict may do to oil prices. Russia is one of the worlds largest oil producers. According to the 2021 BP Statistical Review of World Energy, in 2020 Russia produced 10.1 million barrels per day (BPD) of crude oil and natural gas condensate. That was good for second place behind the U.S. at 11.3 million BPD. Saudi Arabia was third at 9.3 million BPD. However, the U.S. also consumes far more oil (17.2 million BPD) Read more at: https://oilprice.com/Energy/Crude-Oil/Can-The-US-Replace-Russian-Oil-Imports.html |
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The Crisis In Ukraine Is Weighing On European Steel MarketsTwo steelmakers in Ukraine have placed their plants in conservation mode. This comes after the countrys invasion by Russian armed forces in the early hours of Feb. 24. Metinvest Holding announced that it would suspend operations for seven days throughout its hot end at the Azovstal plant as well as at the plants coke shop. Azovstals plate mill as well as rail and structural mills will also stop operations. The group will also halt production at Ilyich Iron and Steel Works sinter plant, the hot ends as well as Mills 1700 Read more at: https://oilprice.com/Latest-Energy-News/World-News/The-Crisis-In-Ukraine-Is-Weighing-On-European-Steel-Markets.html |
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OPEC Chief: Oil Industry Under SiegeThe global oil industry is under siege by climate campaigners who have seized the momentum to dictate the energy transition with misguided talk about halting investment in oil and gas, OPEC Secretary General Mohammad Barkindo said on Monday, as carried by Reuters. Energy affordability, energy security and the need to reduce emissions require a delicate balancing act, comprehensive and sustainable solutions, and with all voices heard, and listened to, Barkindo said virtually during the 2022 edition of Nigeria Read more at: https://oilprice.com/Energy/Crude-Oil/OPEC-Chief-Oil-Industry-Under-Siege.html |
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EV start-up Lucid slashes 2022 vehicle production forecast, causing shares to plummetThe company cited supply chain constraints for slashing production expectations to between 12,000 and 14,000 vehicles, down from 20,000 units. Read more at: https://www.cnbc.com/2022/02/28/lucid-slashes-2022-vehicle-production-forecast.html |
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SpaceX shipment of Starlink satellite internet dishes arrives in Ukraine, government official saysA shipment of SpaceX’s Starlink satellite internet dishes arrived in Ukraine on Monday. Read more at: https://www.cnbc.com/2022/02/28/ukraine-updates-starlink-satellite-dishes.html |
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GM names Cruise co-founder to once again run the self-driving business after CEO’s unexpected departureReturning the company to Vogt, who had already been serving as interim CEO, comes at a pivotal time for the company. Read more at: https://www.cnbc.com/2022/02/28/cruise-co-founder-named-ceo-once-again-after-unexpected-departure.html |
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Investing Club: We added to one of our retail stocks in Monday’s sell-off when it hit our levelsThe trade allows us to slightly improve our average cost basis in the stock. Read more at: https://www.cnbc.com/2022/02/28/investing-club-we-added-to-one-of-our-retail-stocks-in-mondays-sell-off-when-it-hit-our-levels.html |
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The average mortgage holder has a record $185,000 in equity. What to know if you’re tempted to borrow from thatRising home prices have boosted the stake owners have in their homes. Here’s what to consider before you borrow with interest rates poised to rise. Read more at: https://www.cnbc.com/2022/02/28/homeowners-hold-record-equity-what-to-know-if-you-want-to-borrow.html |
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New York City mayor: We need to stop apologizing for being capitalists and support business“We should encourage new businesses to be here, but be compassionate in our actions,” NYC mayor Eric Adams told CNBC on Monday. Read more at: https://www.cnbc.com/2022/02/28/new-york-city-mayor-we-need-to-stop-apologizing-for-being-capitalists-and-support-business.html |
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Top NASA official says space station partnership with Russia ‘still working’ despite Ukraine conflictThe International Space Station represents a U.S. partnership yet unaffected by Russia’s invasion of Ukraine. Read more at: https://www.cnbc.com/2022/02/28/nasa-iss-partnership-with-russia-working-despite-ukraine-conflict.html |
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Russia suspended from international soccer over Ukraine invasion, will miss World CupRussia’s soccer teams were suspended from international play by the sport’s governing bodies due to the Ukraine invasion. The ban means no World Cup for Russia. Read more at: https://www.cnbc.com/2022/02/28/russia-suspended-from-international-soccer-over-ukraine-invasion.html |
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Should you consider a Roth IRA conversion when the market drops? Here’s what experts sayConverting retirement savings from pretax to a Roth IRA may be less costly during stock market dips. Here’s what to know before making this move. Read more at: https://www.cnbc.com/2022/02/28/should-you-consider-a-roth-ira-conversion-when-the-market-drops-.html |
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Victoria’s Secret is leaning more into comfort — and women are taking noticeThe company’s new lingerie lineup offers reason to believe the retailer is a far cry from the Victoria’s Secret of a decade ago. Read more at: https://www.cnbc.com/2022/02/28/victorias-secret-is-leaning-into-comfort-and-women-are-taking-notice.html |
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This 27-year-old former stock trader earns $650,000 a year in LA—and she’s on her way to $1 millionAt 22, Lauren Simmons became the youngest female trader on Wall Street and earned $12,000. Now 27 and her own boss, she’s on track to earn $1 million this year. Read more at: https://www.cnbc.com/2022/02/28/27-year-old-earns-650000-dollars-a-year-in-la-is-on-her-way-to-1-million-dollars.html |
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Did you start your own business in 2021? Here’s what you need to know before filing your taxes“Do not do this on your own,” said Adam Markowitz, an enrolled agent and vice president at Howard L Markowitz PA, CPA in Leesburg, Florida. Read more at: https://www.cnbc.com/2022/02/28/what-to-know-before-filing-business-taxes-for-the-first-time.html |
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Pentagon awards $1.8 billion in contracts to build out its military satellite internetThe Space Development Agency announced nearly $1.8 billion in contracts to three companies for a next-generation military communications network. Read more at: https://www.cnbc.com/2022/02/28/pentagons-sda-awards-transport-layer-satellite-internet-contracts.html |
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Why So Few See The Last Chance To ExitWhy So Few See The Last Chance To ExitAuthored by Charles Hugh Smith via OfTwoMinds blog, When the crash can no longer be denied, the drop is widely recognized as having been obvious and inevitable…
The last chance to exit is well-known in stock trading circles, but the concept can be applied much more broadly. The basic dynamic at work is a mismatch between the fundamentals (i.e. the real world) which are deteriorating due to structural changes and the psychology of participants which continues to be confident and upbeat. A wide spectrum of emotions and human traits are in play, but the core dynamic is our desire to discount signs of trouble rather than deal with a long-term change in the tides. The long uptrend supports confidence that the uptrend will continue moving higher more or less permanently, and the desire to keep minting money by staying fully invested in the uptrend encourages cherry-picking data to suppo … Read more at: https://www.zerohedge.com/markets/why-so-few-see-last-chance-exit |
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Crypto Jumps, Stocks Dump’n’Pump As Cracks Appear In Global Financial System ‘Plumbing’Crypto Jumps, Stocks Dump’n’Pump As Cracks Appear In Global Financial System ‘Plumbing’It’s almost difficult to remember now, but February started with a lingering focus on the Omicron wave of the virus and the expected business interruptions that COVID was again causing. The virus has since faded in the US although it still has a very real presence in Asia. The realization that inflation does not appear to be temporary and may be more persistent than recent past bouts of higher prices has also caused markets to increase expectations for the number of rate hikes that the Fed is likely to initiate in the imminent hiking cycle. And as we exit February, Goldman’s Chris Hussey notes that attention is now divided between what the Fed will say (and do) on March 16th and how the situation between Russia and Ukraine will evolve. Against this backdrop of rising inflation, rates, and geopolitical risk, Energy and Materials outperformed again in February. Most worryingly, cracks are appearing in the global financial system’s plumbing. The cost of dollar liquidity is suddenly rising fast… Read more at: https://www.zerohedge.com/markets/crypto-jumps-stocks-pumpndump-cracks-appear-global-financial-system-plumbing |
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Ron Paul: “It All Comes Down To NATO”Ron Paul: “It All Comes Down To NATO”Authored by Ron Paul via The Ron Paul Institute for Peace & Prosperity, When the Bush Administration announced in 2008 that Ukraine and Georgia would be eligible for NATO membership, I knew it was a terrible idea. Nearly two decades after the end of both the Warsaw Pact and the Cold War, expanding NATO made no sense. NATO itself made no sense.
Explaining my “no” vote on a bill to endorse the expansion, I said at the time:
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Wall Street’s Biggest Bear: We Are On Track For An Extremely Challenging March & AprilWall Street’s Biggest Bear: We Are On Track For An Extremely Challenging March & AprilAs we noted yesterday, in his “Sunday Start” note Morgan Stanley’s Michael Wilson – better known here as Wall Street’s biggest bear (although BofA’s Michael Hartnett is certainly trying to steal that title) explained that while the market is obsessing over the ever-escalating situation in Ukraine, where nobody has any edge and where traders are at the whim of the Johari window’s “unknown unknowns”…
… what investors should be focusing on instead, is the arrival of what Wilson calls “ice” (i.e., a sharp slowdown in the economy coupled with a plunge in earnings), now that the market has finally accepted the other part of his ying-yang narrative, i.e., “fire” which means higher inflation … Read more at: https://www.zerohedge.com/markets/wall-streets-biggest-bear-we-are-track-extremely-challenging-march-april |
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Shell to sever Gazprom links in Ukraine crisisShell said on Monday that it will exit joint ventures with the Russian gas giant Gazprom amid the conflict. Read more at: https://www.bbc.co.uk/news/business-60564265?at_medium=RSS&at_campaign=KARANGA |
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UK citizens are advised not to travel to RussiaThe Foreign Office says people should avoid travelling to Russia due to a lack of “flight options”. Read more at: https://www.bbc.co.uk/news/business-60559513?at_medium=RSS&at_campaign=KARANGA |
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Meerkat ads pulled over Ukraine war sensitivitiesComparethemarket’s Aleksandr Orlov is a fictional rich Russian living in London. Read more at: https://www.bbc.co.uk/news/business-60557073?at_medium=RSS&at_campaign=KARANGA |
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50% chance of RBI erring on inflation; likely post-poll fuel price revision key CPI risk: NomuraThe RBI’s push to ensure the durability of the growth recovery is undoubtedly justified given the extent to which the COVID-19 crisis has scarred India’s economy but Nomura believes that the central bank has it wrong when it comes to assessment on inflation. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/50-chance-of-rbi-erring-on-inflation-likely-post-poll-fuel-price-revision-key-cpi-risk-nomura/articleshow/89901338.cms |
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Indian tech stocks more resilient to corrections, says Morgan StanleyPaytm’s trading debut in November turned out to be the worst for any major technology stock since the dot-com bubble era of the late 1990s. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/morgan-stanley-says-reset-in-india-tech-valuations-to-stay/articleshow/89889627.cms |
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Tech View: Nifty50 forms bullish candle; hurdle seen at 16,900 level“A close below 16,356 levels shall dissipate the current bullish momentum by resuming the weakness in the index.” Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-forms-bullish-candle-hurdle-seen-at-16900-level/articleshow/89897256.cms |
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: 7 ways to help Ukrainians now as Russia’s invasion continuesWhere and how to donate to help refugees fleeing Ukraine. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-79E4-45DE3A08C320%7D&siteid=rss&rss=1 |
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: Zoom says a growth slowdown is coming, and the stock is plungingZoom Video Communications Inc. shares dove as much as 10% in late trading Monday after the videoconferencing company showed off huge growth from 2021 but admitted that type of performance may be ending for now. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-79E5-5259A85188EF%7D&siteid=rss&rss=1 |
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The Margin: From pop singer Regina Spektor to tennis star Andrey Rublev, prominent Russians voice opposition to the invasion of UkraineSome of the anti-war statements are coming from those who previously supported Russian President Vladimir Putin. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-79E0-0E6BBC0682CB%7D&siteid=rss&rss=1 |
