06July2022 Market Close & Major Financial Headlines: Stocks Rise After FOMC Minutes Released With The Fed Reaffirming Commitment To Bringing Down Inflation, Wall Street Nosedives During Last 30 Minutes Of Session

Could Argentina’s Dead Cow Shale Patch Help Solve The Energy Crisis?

In a surprise development, Latin America’s third-largest economy Argentina reported record hydrocarbon production for May 2022. For that month Argentina pumped an average of 574,465 barrels of crude oil and 136 million cubic meters of natural gas per day. Those volumes represent a 0.9% and 6.8% increase respectively over a month prior and a notable 13.9% and 6.9% higher year over year. The key driver of that impressive leap in production volumes was growing shale oil and natural gas output from the Vaca Muerta. Ministry of Economy data

Read more at: https://oilprice.com/Energy/Crude-Oil/Could-Argentinas-Dead-Cow-Shale-Patch-Help-Solve-The-Energy-Crisis.html

Energy Crisis Could Force The UK To Keep Using Coal

The UK government introduced to Parliament on Wednesday the Energy Security Bill, proposed legislation that does not explicitly confirm the UK’s pledge to end coal use by October 2024. The bill, the goal of which is to deliver a cleaner, more affordable, and more secure energy system, doesn’t mention coal, Bloomberg notes, while a spokesperson for the Department of Energy, Business and Industrial Strategy didn’t immediately respond to Bloomberg for comment. The UK said last year it would bring forward its target

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Energy-Crisis-Could-Force-The-UK-To-Keep-Using-Coal.html

Global Supply For Battery Metals Is Running Tight As Demand Surges

As the desire for electric vehicles increases, the demand for battery metals like lithium and cobalt continues to rise. Will this cause a global pinch on rare earth resources? Considering all the challenges facing metal commodities (and commodities in general), it remains a distinct possibility. The Cobalt Craze and Mining Competition China Molybdenum, a large mining company in mainland China, recently announced plans to invest in mining initiatives based out of the Democratic Republic of Congo. According to estimates, the firm plans to put a staggering

Read more at: https://oilprice.com/Energy/Energy-General/Global-Supply-For-Battery-Metals-Is-Running-Tight-As-Demand-Surges.html

China Continues To Buy Record Levels Of Russian Crude

China likely imported another 2 million barrels per day (bpd) of discounted Russian crude oil in June after bringing in around the same amount in May, keeping Russia as its top oil supplier ahead of Saudi Arabia for a second consecutive month. Russian crude is estimated to have squeezed out some supply from Saudi Arabia and the rest of the Middle East, as well as West Africa, Reuters reported on Wednesday, citing data from tanker tracking firms Refinitiv, Vortexa, and Kpler. While record imports of Russian crude continued from May into June in

Read more at: https://oilprice.com/Latest-Energy-News/World-News/China-Continues-To-Buy-Record-Levels-Of-Russian-Crude.html

Coinbase: Oil And Tech Stocks Are As Risky As Crypto

Crypto risk profiles are like those in oil prices and tech stocks, according to crypto exchange Coinbase. The market expects crypto assets to become more and more intertwined with the rest of the financial system, and thus to be exposed to the same macro-economic forces that move the world economy, Coinbase Institute Chief Economist Cesare Fracassi said on Tuesday. Crypto assets today share similar risk profiles to oil commodity prices and technology stocks. He said two-thirds of the recent fall in crypto

Read more at: https://oilprice.com/Energy/Energy-General/Coinbase-Oil-And-Tech-Stocks-Are-As-Risky-As-Crypto.html

U.S. Secretary Of State Calls On G20 Countries To Hold Russia Accountable

U.S. Secretary of State Antony Blinken will call on Group of 20 members this week to put pressure on Russia to support UN efforts to reopen sea lanes blocked by the Ukraine conflict and repeat warnings to China not to support Moscow’s war effort. Blinken heads to Asia on July 6 for a meeting of G20 foreign ministers in Bali on July 8. He is due to meet with his Chinese counterpart, Wang Yi, but no meeting is expected with Russian Foreign Minister Sergei Lavrov. Ramin Toloui, the assistant secretary of state for economic and business affairs, told

Read more at: https://oilprice.com/Latest-Energy-News/World-News/US-Secretary-Of-State-Calls-On-G20-Countries-To-Hold-Russia-Accountable.html

Peloton sweetens employee pay incentives as it fights to boost morale and stage a turnaround

Peloton is sweetening the pot for its workers with one-time cash bonuses and changes to its stock compensation plan, according to internal memos.

Read more at: https://www.cnbc.com/2022/07/06/peloton-sweetens-employee-pay-incentives-as-it-fights-to-boost-morale.html

Hulu is facing an existential crisis as Disney approaches a 2024 deadline to buy Comcast’s 33% stake

In an era of flagship streaming services like Disney+ and Peacock, Hulu is caught in the middle.

Read more at: https://www.cnbc.com/2022/07/06/hulu-faces-existential-crisis-as-disney-decides-how-to-move-forward.html

Biden taps Denver airport chief Phil Washington to head the FAA

Phil Washington previously headed transit agencies in Los Angeles and Denver.

Read more at: https://www.cnbc.com/2022/07/06/biden-taps-denver-airport-chief-phil-washington-to-head-the-faa-.html

Netflix announces ‘Stranger Things’ spin-off as creators form new production company

Netflix and the Duffer Brothers have formed Upside Down Pictures, which will create a “Stranger Things” spin-off.

Read more at: https://www.cnbc.com/2022/07/06/netflix-stranger-things-spinoff-duffer-brothers-upside-down-pictures.html

GM reports worst sales in China since onset of Covid-19 lockdowns

The Detroit automaker said it only sold 484,200 vehicles during the second quarter in China, its largest market globally.

Read more at: https://www.cnbc.com/2022/07/06/gm-reports-worst-sales-in-china-since-onset-of-covid-19-lockdows.html

Mortgage demand sinks even as rates drop

Mortgage demand dropped last week, even as mortgage rates fell, according to the Mortgage Bankers Association.

Read more at: https://www.cnbc.com/2022/07/06/mortgage-demand-sinks-even-as-rates-drop.html

Here’s how much cash you need to ride out a recession at different life stages, according to financial advisors

With the threat of a recession looming, financial experts share how to prepare, including how much cash to set aside.

Read more at: https://www.cnbc.com/2022/07/06/how-much-cash-you-need-for-a-recession-according-to-advisors.html

Toyota hits electric-vehicle sales milestone, joins Tesla and GM in triggering phaseout of tax incentives for buyers

The phaseout of the credit for Toyota customers is expected to be complete in October 2023, the company said Wednesday. The phaseout will begin Oct. 1.

Read more at: https://www.cnbc.com/2022/07/06/toyota-joins-tesla-and-gm-in-losing-federal-ev-tax-credits.html

Rivian confirms it’s on track to build 25,000 electric vehicles this year

Rivian said it delivered more than 4,000 EVs in the second quarter and still expects to build 25,000 this year.

Read more at: https://www.cnbc.com/2022/07/06/rivian-says-its-still-on-track-to-build-25000-evs-in-2022.html

Ben & Jerry’s sues parent company Unilever over sale of Israeli business

Ben & Jerry’s is suing parent company Unilever to stop the sale of its Israeli business to a local licensor.

Read more at: https://www.cnbc.com/2022/07/05/ben-jerrys-sues-parent-company-unilever-over-sale-of-israeli-business.html

‘Minions’ vs. ‘Lightyear:’ Here’s why the silly yellow blobs beat Buzz at the box office

‘Minions’ and ‘Toy Story’ are among the most popular and profitable franchises for their respective studios — so why did “Minions” soar and “Lightyear” flop?

Read more at: https://www.cnbc.com/2022/07/05/why-minions-beat-lightyear-at-the-box-office.html

Manhattan apartment sales fall 30% in June, but prices remain high

Sales contracts for Manhattan apartments plunged by nearly a third in June as the city’s scorching real estate market started to cool amid recession fears.

Read more at: https://www.cnbc.com/2022/07/06/manhattan-apartment-sales-fall-30percent-in-june-prices-remain-high.html

Ford reports slight uptick in quarterly sales that misses analysts’ expectations

Ford on Tuesday reported a 1.8% uptick in second-quarter sales compared with a year earlier, including a 31.5% increase in June.

Read more at: https://www.cnbc.com/2022/07/05/ford-f-q2-2022-us-sales.html

Bonds, Bullion, & Black Gold Drop, Dollar Pops As Fed Confirms Hawkish Stance

ISM data confirmed a contraction in employment across Manufacturing and Services but showed prices remain extremely high screaming ‘stagflation’ and the ‘recession’ trade continued with growth stocks rallying and commodities dumped. The Fed Minutes confirmed an “even more restrictive” stance on rates and the need to maintain (or rebuild) The Fed’s inflation-fighting credibility.

Overall the rate-trajectory shifted hawkishly today (but not by much)…

Source: Bloomberg

Specifically, rate-hike odds for July and September rose very modestly on the day

Read more at: https://www.zerohedge.com/markets/bonds-bullion-black-gold-drop-dollar-pops-fed-confirms-hawkish-stance

US Marines Ask Court For Relief From COVID-19 Vaccine Mandate

US Marines Ask Court For Relief From COVID-19 Vaccine MandateAuthored by Jack Phillips via The Epoch Times (emphasis ours),

Several members of the U.S. Marine Corps filed an amended complaint seeking relief from the Department of Defense’s COVID-19 vaccine mandate for service members, claiming they were denied religious exemptions.

A member of the U.S. military receives the Moderna COVID-19 vaccine at Camp Foster in Ginowan, Japan, on April 28, 2021. (Carl Court/Getty Images)The complaint was filed (pdf) in the U.S. District Court Middle District of Florida against the Defense Department, Secretary Lloyd Austin, and Gen. David H. Berger, th …

Read more at: https://www.zerohedge.com/covid-19/us-marines-ask-court-relief-covid-19-vaccine-mandate

US Imposes Sanctions On Iran Oil Producers After Failure To Revive Nuclear Deal

So much for Iranian oil flooding the market.

After days, and weeks and months and years of failed attempts to revive the JCPOA, aka the Iranian nuclear deal, on Wednesday the Biden administration announced it was putting sanctions on 15 individuals and entities who have been involved in illicit sales and shipments of millions of dollars’ worth of Iranian oil.

The newest sanctions, unveiled by Secretary of State Antony Blinken, come as the latest efforts to revive the Iran nuclear deal failed just last week.

“The United States is designating 15 individuals and entities that engaged in the illicit sales and shipment of Iranian petroleum, petroleum products, and petrochemical products. These entities, located in Iran, Vietnam, Singapore, the United Arab Emirates (UAE), and Hong Kong, have supported the Iranian energy trade generating millions of dollars’ worth of illicit revenue,” Blinken said in a statement.

We are imposing sanctions on Iranian petroleum and petrochemical producers, transporters, and front companies. Absent a commitment from Iran to return to the JCPOA, an outcome we continue to pursue, we will keep using our authorities to target Iran’s exports of energy products.

— Secretary Antony Blinken (@SecBlinken) July 6, 2022

“While the United States is committed to achieving an agreeme …

Read more at: https://www.zerohedge.com/commodities/us-imposes-sanctions-iran-oil-producers-after-failure-revive-nuclear-deal

Recession Is Priced In; Stagflation Is Not

 Submitted by the Space Worm Substack

The Eurodollar futures market is predicting a Fed rate cut in Q1 2023:

Yet neither CPI nor PCE have declined to any meaningful degree:

Read more at: https://www.zerohedge.com/markets/recession-priced-stagflation-not

British Airways to cancel 10,300 more flights

The airline says the cancellations will affect short-haul flights between August and the end of October.

Read more at: https://www.bbc.co.uk/news/business-62070451?at_medium=RSS&at_campaign=KARANGA

Will Nadhim Zahawi change tack on the economy?

All eyes are on whether the new chancellor adopts a different approach to economic management.

Read more at: https://www.bbc.co.uk/news/business-62053705?at_medium=RSS&at_campaign=KARANGA

Pound slides to two-year low against the dollar

Investors flock to the safe-haven dollar over concerns about the outlook for UK economic growth.

Read more at: https://www.bbc.co.uk/news/business-62053700?at_medium=RSS&at_campaign=KARANGA

Nifty50 at 13,800 or 18,400? Here is what Dalal Street analysts said

“We maintain that PE average could be converging to the pre-2013 average of 18.5 times compared to 24 times during 2014-19 and current levels of 19.5 times,” JM Financial said in a note.Nifty50 can move to 13,800 mark, which is around its long-term average, given accelerated liquidity withdrawal along with slowing earnings revision momentum, said Elara Securities in a strategy note.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/nifty50-at-13800-or-18400-here-is-what-dalal-street-analysts-said/articleshow/92701906.cms

Tech View: Nifty50 forms bullish candle, sends positive signals

The index formed a bullish candle on the daily chart that almost engulfed the negative candle of the previous session. Technically, it indicates a negation of bearish formation and signals positive bias for the market ahead, according to Nagaraj Shetti at HDFC Securities.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-forms-bullish-candle-sends-positive-signals/articleshow/92703298.cms

5 reasons why Goldman Sachs thinks Kotak can be $100 bn-bank in next 4 years

They have upgraded the bank to a buy rating and added the stock to their conviction list with a target price of Rs 2,135, which translates into an upside potential of about 26 percent from prevailing prices.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/5-reasons-why-goldman-sachs-thinks-kotak-can-be-100-bn-bank-in-next-4-years/articleshow/92696435.cms

Deep Dive: These 10 Dividend Aristocrat stocks have made investors a lot of money — which might soar from here?

Companies that are in the habit of raising their regular dividends every year often are good choices for long-term growth.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F44-69CADE67A280%7D&siteid=rss&rss=1

Schumer provides ‘rock-solid evidence’ that Democrats will push forward with partisan tax and spending bill, analyst says

Democrats have long hoped to coalesce around a plan to roll back some of Donald Trump’s tax cuts for wealthy individuals and corporations to pay for new spending on healthcare and the fight against climate change, and it appears that plan is finally taking shape.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F54-2B819CE38DC8%7D&siteid=rss&rss=1

The New York Post: 4 in 10 Americans say they’re ‘struggling’ financially amid high inflation and rising gas prices

The number of people struggling financially in the US is rising as fast as inflation.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F57-63B3BD395B7E%7D&siteid=rss&rss=1