The U.S. markets closed down on light red volume, while Bitcoin briefly hit $47K. Dogecoin is also higher at $0.1653. Unfortunately, Brainard’s comments seemed to negatively influence the market’s final hour after he said the balance sheet reduction occurring soon and ‘at a rapid pace.’
Today, the DOW’s losses were to losses from Boeing and Salesforce, Inc. In addition, the NASDAQ fell more than 2.3%, leading to stock-market losses as investors continue to observe the Ukraine/Russian fiasco plus weigh the Fed’s policy path. However, low red volume today suggests a wait-and-see posture on what the Fed will say on Wednesday.
Jamie Dimon warns of ‘volatile markets’ as the Fed shifts policy. JP Morgan chief’s annual shareholder letter predicts ‘inflation will eventually start to recede.’ JP Morgan (JPM) CEO Jamie Dimon also flagged the “strength of the U.S. economy” in his annual letter to shareholders on Monday, citing “plentiful jobs with wage increases and more than $2T in excess savings.” The consumer is in “excellent financial shape (on average),” he added, while leverage is “among the lowest on record.”
A summary of headlines we are reading today:
- U.S. Gas Production Set To Fall On Lack Of Pipelines
- Developers Are Flooding Arizona With Homes Even As Historic Western Drought Intensifies
- Gm And Honda To Develop Affordable Electric Vehicles That Cost Less Than $30,000
- Brainard Batters Bonds, Stocks, Bullion, & Bitcoin With ‘Fast & Furious’ QT Threat
- Bond Investors See The Prospect Of A More Deeply Inverted Yield Curve Ahead
These and other headlines and news summaries moving the markets today are included below.
The Market in Perspective
| Here are the headlines moving the markets. | |
 |
Whats Next For Americas Strategic Petroleum Reserve?I have often noted that presidents have few ways to impact gasoline prices in the short term. However, one of the ways they can make a short-term impact is to release oil from the nations Strategic Petroleum Reserve (SPR). The U.S. created the SPR in 1975 following the 19731974 oil embargo, to protect against future oil supply disruptions. Although it is supposed to be used for severe supply disruptions, politicians have historically used it to try to stem rising gasoline prices especially in election years. Thus, in this Read more at: https://oilprice.com/Energy/Energy-General/Whats-Next-For-Americas-Strategic-Petroleum-Reserve.html |
|
Rumors Of A Coordinated Oil Reserve Release Keep Prices RangeboundReader Update:Whether you are new to the oil and gas industry or an energy market veteran, you will regret not signing up for Global Energy Alert. Oilprice.com’s premium newsletter provides everything from geopolitical analysis to trading analysis, and all for less than a cup of coffee per week.Chart of the Week-By lifting all of its May-loading formula prices, Saudi Aramco took the differentials of its marketed crude’s to unprecedented levels, with its key Arab Light stream set at a $9.35 per barrel premium over Oman/Dubai for Read more at: https://oilprice.com/Energy/Energy-General/Rumors-Of-A-Coordinated-Oil-Reserve-Release-Keep-Prices-Rangebound.html |
|
Canada’s Oil Boom Constrained By Workforce ShortageWhile $100 oil incentivizes increased production in Canada’s crude-producing province of Alberta, the ramp-up of production is being held back by an issue all too familiar to the U.S. shale patch there are not enough skilled workers to employ. During the 2020 slump induced by the pandemic, the industry lost a lot of jobs, and many of the workers previously employed in oil and gas in Alberta have now moved on to other sectors of the economy, seeking stability, which is a rare and short-lived occurrence in today’s oil market. The Read more at: https://oilprice.com/Latest-Energy-News/World-News/Canadas-Oil-Boom-Constrained-By-Workforce-Shortage.html |
|
Whats Behind The Renewed Drone Attacks On The UAE?The United Arab Emirates (UAE) has been exposed to a recent wave of drone and missile strikes from Houthi militants in Yemen. These attacks are in retaliation to a change in the UAEs strategy in its intervention in Yemens civil war. The UAEs robust defense systems have been able to thwart Houthi attacks. However, the UAEs continued intervention in Yemen risks provoking Houthi rebels into adopting military tactics that target civilians. The mere risk of such an attack would negatively affect the UAEs perception Read more at: https://oilprice.com/Energy/Energy-General/Whats-Behind-The-Renewed-Drone-Attacks-On-The-UAE.html |
|
Government Of OPEC Heavyweight Kuwait ResignsThe government of Kuwait resigned on Tuesday as the political impasse in one of the largest OPEC producers deepened ahead of a vote of no-confidence in Parliament. Kuwait’s Prime Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah tendered the government’s resignation today, Kuwait News Agency (KUNA) reported. The Speaker of the Parliament, Marzouq Ali Al-Ghanim, said that the National Assembly had canceled Wednesday’s session for the no-confidence vote after the prime minister’s resignation. Kuwaiti Crown Prince Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah Read more at: https://oilprice.com/Latest-Energy-News/World-News/Government-Of-OPEC-Heavyweight-Kuwait-Resigns.html |
|
U.S. Gas Production Set To Fall On Lack Of PipelinesU.S. natural gas production will decline by 5 percent by 2050, and consumption will shed 4 percent if no new interstate pipelines are built, the Energy Information Administration said in its latest Annual Energy Outlook. This, in turn, will lead to higher gas prices, the authority also said, and this will, in turn, lead to higher electricity prices. The higher natural gas prices that result from capacity constraints primarily affect natural gas consumption in the U.S. electric power sector, which is more price-sensitive than the residential, Read more at: https://oilprice.com/Energy/Natural-Gas/US-Gas-Production-Set-To-Fall-On-Lack-Of-Pipelines.html |
|
Biden administration launches national research plan to understand and treat long CovidSome people who contract Covid have symptoms months later, including difficulty breathing, fatigue, problems concentrating and body aches, among others. Read more at: https://www.cnbc.com/2022/04/05/biden-administration-launches-long-covid-research-plan.html |
|
Here’s how NFL star Bobby Wagner negotiated his $65 million deal with the RamsFormer Seahawks star Bobby Wagner acted as his own agent as he negotiated a new deal with the Los Angeles Rams. Read more at: https://www.cnbc.com/2022/04/05/how-nfl-star-bobby-wagner-negotiated-his-65-million-deal-with-the-rams-.html |
|
Stocks making the biggest moves midday: Twitter, Carnival, First Solar and moreTake a look at the notable stock moves for Tuesday, April 5. Read more at: https://www.cnbc.com/2022/04/05/stocks-making-the-biggest-moves-midday-twitter-carnival-first-solar-and-more.html |
|
WarnerMedia’s Jason Kilar will depart CEO role as merger with Discovery nears its closeWarnerMedia CEO Jason Kilar will be stepping down from his role as the company’s merger with Discovery nears its close. Read more at: https://www.cnbc.com/2022/04/05/warnermedia-ceo-jason-kilar-will-depart-as-discovery-merger-nears-close.html |
|
Developers are flooding Arizona with homes even as historic Western drought intensifiesA desperate shortage of homes has developers putting up thousands of homes in the Arizona desert, but extreme drought puts them all at risk. Read more at: https://www.cnbc.com/2022/04/05/developers-flood-arizona-with-homes-even-as-drought-intensifies.html |
|
Dr. Scott Gottlieb believes omicron BA.2 subvariant unlikely to cause ‘national wave’ in U.S.However, cases are being “dramatically” underreported in some parts of the country, like the Northeast, the ex-FDA chief told CNBC on Tuesday. Read more at: https://www.cnbc.com/2022/04/05/dr-scott-gottlieb-believes-omicron-bapoint2-subvariant-unlikely-to-cause-national-wave-in-us.html |
|
There’s no shortage of aspiring Goldman bankers as record 236,000 students apply for internshipsBanking internships are an annual rite of passage on Wall Street and an essential pipeline of talent for investment banks and the broader financial universe. Read more at: https://www.cnbc.com/2022/04/05/goldman-says-record-236000-students-apply-for-internships.html |
|
GM and Honda to develop affordable electric vehicles that cost less than $30,000General Motors and Honda Motor will develop a series of affordable electric vehicles based on a new global platform. Read more at: https://www.cnbc.com/2022/04/05/gm-and-honda-to-partner-on-affordable-electric-vehicles.html |
|
Amazon signs massive rocket deal with 3 firms, including Bezos’ Blue Origin, to launch internet satellitesProject Kuiper is Amazon’s plan to build a network of 3,236 satellites in low Earth orbit, to provide high-speed internet to anywhere in the world. Read more at: https://www.cnbc.com/2022/04/05/amazon-signs-rocket-deal-with-blue-origin-arianespace-ula-for-project-kuiper-internet-satellites.html |
|
Wind energy needs dramatic increase to hit net-zero goals, new report saysThe offshore wind segment installed 21.1 GW in 2021, its best ever year. Read more at: https://www.cnbc.com/2022/04/05/wind-energy-installations-must-quadruple-to-hit-net-zero-goals-gwec.html |
|
Brainard Batters Bonds, Stocks, Bullion, & Bitcoin With ‘Fast & Furious’ QT ThreatBrainard Batters Bonds, Stocks, Bullion, & Bitcoin With ‘Fast & Furious’ QT ThreatWell that escalated quickly… Vice-Chair-to-be Lael Brainard tore off the ‘Yellenish’ mask that she wore for years and went full ‘Bullard’ today…
…and everyone knows you never go full ‘bullard’…
The Federal Open Market Committee “will continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting,” adding that she “[expects] the balance sheet to shrink considerably more rapidly than in the previous recovery, with significantly larger caps and a much shorter period to phase in the maximum caps compared with 2017–19.” Later in the day, SF Fed … Read more at: https://www.zerohedge.com/markets/brainard-batters-bonds-stocks-bullion-bitcoin-fast-furious-qt-threat |
|
White House Plans To Extend Student Loan Moratorium (Again) As Midterms LoomWhite House Plans To Extend Student Loan Moratorium (Again) As Midterms LoomThe notion that student-loan forgiveness is being weaponized by Democrats as a means of essentially buying the loyalty of an entire generation (or at least the upper-middle-class members of said generation) isn’t anything new. Indeed, we have discussed it in detail as recently as late last month.
But despite this transparent attempt to curry favor with educated liberals (already the Dems political base), the Biden Administration is preparing to go back to the well once more during an election year. After moving to forgive some student loan payments, the Biden Administration has yet again reportedly decided to extend its moratorium on student loan payments. This time, the moratorium (which was p … Read more at: https://www.zerohedge.com/political/white-house-plans-again-extend-student-loan-moratorium-midterms-loom |
|
One Bank Spots A Big Red Flag For Stocks: Buybacks Are Inexplicably TumblingOne Bank Spots A Big Red Flag For Stocks: Buybacks Are Inexplicably TumblingForget the inverted yield curve and the coming recession: a far more ominous development for stocks has emerged: stock buybacks are suddenly plunging. Three weeks ago, when an otherwise bullish Goldman Sachs was urging its clients to (correctly) buy stocks ahead of the quarter-end bear market rally/melt up (the same bear market rally, which Morgan Stanley now says is over), the bank warned that one of the bigger risk factors entering Q1 reporting period is the end of buybacks, and what back then was 45% of the S&P in a buyback blackout has now risen to 95%:
As Goldman wrote, “the avg notional executed by corporates (street wide) during the open window is ~$4b per day in U.S. mkt. During blackout period our corporate desk’s executions typically decline by 25 – 30%. Fair to assume at least $1b of demand is removed from market place on a … Read more at: https://www.zerohedge.com/markets/one-bank-spots-big-red-flag-stocks-buybacks-are-inexplicably-tumbling |
|
NIH Working To Keep Taxpayers In The Dark by Stalling On Fauci Docs: Transparency AdvocateNIH Working To Keep Taxpayers In The Dark by Stalling On Fauci Docs: Transparency AdvocateAuthored by Jan Jekielek and Zachary Stieber via The Epoch Times, The National Institutes of Health (NIH) is attempting to keep money spent on things like Dr. Anthony Fauci’s salary, the highest-paid U.S. government employee, hidden from members of the public, according to a transparency advocate.
Andrzejewski’s watchdog group discovered how much Fauci was getting paid and that he received a permanent pay bump in the early 2000s in part to prevent him from leaving the government. Read more at: https://www.zerohedge.com/political/nih-working-keep-taxpayers-dark-stalling-fauci-docs-transparency-advocate |
|
Business Secretary Kwasi Kwarteng orders scientific review of fracking impactSenior Tories are calling for an end to the ban on shale gas extraction to help secure energy supplies. Read more at: https://www.bbc.co.uk/news/uk-politics-60999026?at_medium=RSS&at_campaign=KARANGA |
|
Manchester Airport chief stands down after travel chaosManaging director Karen Smart is to leave, amid criticism of management over long security queues. Read more at: https://www.bbc.co.uk/news/uk-england-manchester-61002096?at_medium=RSS&at_campaign=KARANGA |
|
New rules on gambling adverts ban celebrities and sports starsFirms will not be able to use stars like footballer Cristiano Ronaldo and Love Island’s Chris Hughes. Read more at: https://www.bbc.co.uk/news/business-60994728?at_medium=RSS&at_campaign=KARANGA |
|
Three guiding principles to keep your portfolio steady in choppy watersHere are three things that are market-agnostic and should be followed irrespective of the market environment Read more at: https://economictimes.indiatimes.com/markets/stocks/news/three-guiding-principles-to-keep-your-portfolio-steady-in-choppy-waters/articleshow/90661296.cms |
|
Trade setup: Nifty staring at couple of days of consolidation againWednesday is likely to see the levels of 18,000 and 18,065 acting as potential resistance points. The supports will come in at 17,880 and 17,810. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/trade-setup-nifty-staring-at-couple-of-days-of-consolidation-again/articleshow/90666361.cms |
|
Tech View: Nifty50 takes a breather, consolidation likelyThe index negated its higher-high formations of the last five sessions. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-takes-a-breather-consolidation-likely/articleshow/90664829.cms |
|
In One Chart: Bond investors see prospect of more deeply inverted yield curve aheadA forward indicator of the U.S. Treasury curve points to the prospect of a more deeply negative inversion of the 2-year, 10-year spread than what’s been seen. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7B9C-CA618610356C%7D&siteid=rss&rss=1 |
|
Crypto: Ether is worth more than $6,000, based on this valuation modelEther is valued at $6,128, or about 180% of the crypto’s current price, based on a discounted cash-flow model, as Ethereum’s upcoming major upgrade could convert the cryptocurrency into an “equity-like instrument,” according to a recent report by Bloomberg Intelligence. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7B9D-B5AC785DD79B%7D&siteid=rss&rss=1 |
|
: The U.S. plans to further invest in care and research for long COVIDWhite House officials on Tuesday announced new plans to address the impact of long COVID, which has affected millions of people in the U.S. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7B9B-F7EE982BA795%7D&siteid=rss&rss=1 |
