Summary Of the Markets Today:
- The Dow closed up 345 points or 1.12%,
- Nasdaq closed up 2.28%,
- S&P 500 closed up 1.49%,
- WTI crude oil settled at 103 up 4.63%,
- USD $107.03 up 0.51%,
- Gold $1741 flat 0.00%,
- Bitcoin $21723 up 7.26% – Session Low 20271,
- 10-year U.S. Treasury 3.006% up 0.095%
Today’s Economic Releases:
NFIB’s monthly jobs report says 1/2 of small businesses have job openings they cannot fill. NFIB Chief Economist Bill Dunkelberg stated:
The labor force participation rate has been slowly rising this year, with more people taking jobs. However, the labor shortage continues to be a difficult problem for small businesses. A few more good months of increased employment might get total employment back to pre-pandemic levels.
The ADP private payroll employment report scheduled for release today has been discontinued until 31 August 2022. According to their press release:
ADP Research Institute (ADPRI) and the Stanford Digital Economy Lab (the “Lab”) announced they will retool the ADP National Employment Report (NER) methodology to provide a more robust, high-frequency view of the labor market and trajectory of economic growth. In preparation for the changeover to the new report and methodology, ADPRI will pause issuing the current report and has targeted August 31, 2022 to reintroduce the new ADP National Employment Report.
According to US Census, the trade deficit slightly moderated. Both exports and imports grew but exports grew more causing the moderation. Still the trade deficit remains near record levels. Normally, an increase in imports signals economic expansion except that inflation clearly is the reason for growth of imports and exports.
The four-week moving average of weekly unemployment insurance claims insignificantly grew for the week ending 02 July 2022.
U.S.-based employers announced 32,517 cuts in June 2022 – a sizeable increase from the previous month and the same month last year. According to Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.:
Employers are beginning to respond to financial pressures and slowing demand by cutting costs. While the labor market is still tight, that tightness may begin to ease in the next few month. Many of the sectors increasing layoffs this year are currently dealing with the housing market downturn, as demand for mortgages dries up and financing becomes more difficult and expensive to obtain.
A summary of headlines we are reading today:
- Canada Posts Biggest Trade Surplus Since 2008 As Oil Prices Soar
- Donald Trump left the board of his social media company weeks before federal subpoenas, filing shows
- American Airlines pilots get triple pay for trips dropped in a scheduling glitch
- Virgin Galactic announces deal with Boeing subsidiary to build additional aircraft ‘motherships’
- “You Know What Would Be Really Irritating? A Crazy Rally To New Highs”
- DB: When We Get Confirmation Of A Proper Recession, Watch Out Below
- Commodities Corner: Why crude released from U.S. oil reserves may have ended up being exported overseas
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. | |
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Canada Posts Biggest Trade Surplus Since 2008 As Oil Prices SoarIn May, Canada booked its largest trade surplus since August 2008 as the rally in oil prices lifted the share of energy exports of all Canadian exports to a record high, Statistics Canada said on Thursday. Canada’s total merchandise exports increased by 4.1 percent in May compared with April, for a fifth consecutive monthly increase. At the same time, imports fell by 0.7 percent. As a result, Canada’s merchandise trade surplus with the world widened from US$1.7 billion (C$2.2 billion) in April to US$4 billion (C$5.3 billion in May). This was the Read more at: https://oilprice.com/Latest-Energy-News/World-News/Canada-Posts-Biggest-Trade-Surplus-Since-2008-As-Oil-Prices-Soar.html |
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Big Oil CEO Believes Carbon Prices Need To DoubleClimate economists and major energy firms believe that the price of carbon should be raised to incentivize greater investment in carbon capture technology and renewable energy innovation. As, without setting a minimum carbon pricing scheme at the international level or introducing carbon taxes, companies are not being incentivized enough to pledge or meet net-zero carbon goals by 2050. The CEO of Exxon Mobil, Darren Woods, stated in an interview that he thinks direct air capture, through the incorporation of carbon capture and storage (CCS) Read more at: https://oilprice.com/Energy/Energy-General/Big-Oil-CEO-Believes-Carbon-Prices-Need-To-Double.html |
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Is Hydrogen The Future Of Clean Aviation?As the auto and land transportation industries shift away from fossil fuels to renewable alternatives, other sectors look to do the same. While running freight, ships, and planes with electric batteries or green fuel seems a long way off, greater investment in recent years has made companies more optimistic about what they might be able to achieve within the next decade. As energy firms around the world see innovations in green hydrogen, suggesting this may well be the fuel that will power the future of clean aviation. The aviation industry Read more at: https://oilprice.com/Alternative-Energy/Renewable-Energy/Is-Hydrogen-The-Future-Of-Clean-Aviation.html |
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U.S. Greenlights Liquified Petroleum Gas Exports To VenezuelaThe U.S. Department of the Treasury extended on Thursday the authorization of export and re-export of liquefied petroleum gas to Venezuela until July 2023. Liquefied petroleum gas (LPG) is mostly used in Venezuela as cooking fuel and the first general license for U.S. exports of LPG to the country, which is otherwise under American sanctions, came in July last year. Back then, the Treasury Department authorized through July 8, 2022, some exports and re-exports of LPG to Venezuela. Such transactions were not allowed during the Trump Administration. Read more at: https://oilprice.com/Latest-Energy-News/World-News/US-Greenlights-Liquified-Petroleum-Gas-Exports-To-Venezuela.html |
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How Much Will It Cost To Rebuild Ukraine?Ukrainian officials have issued a new price tag for the country’s post-war “recovery plan” of $750 billion. The huge sum was advanced at a two-day conference on Ukrainian reconstruction which started Monday in Switzerland. Ukrainian President Volodymyr Zelensky said in a virtual address that reconstruction of his country is a “common task of the entire democratic world all countries, all countries who can say they are civilized.” He added, “We are uniting the democratic world…The outlook of free people always prevails.” “Reconstruction Read more at: https://oilprice.com/Geopolitics/International/How-Much-Will-It-Cost-To-Rebuild-Ukraine.html |
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Deadly Explosion At Kazakhstan’s Biggest OilfieldAn explosion at a giant oilfield in Kazakhstan, the country’s largest, killed on Thursday two workers and left at least three others wounded, local reports say. The blast at the Tengiz oilfield occurred during a test in a pipe, the operator Tengizchevroilin which U.S. supermajor Chevron has 50 percent said, as carried by Kazakh news agency Kazinform. The Tengiz Field is one of the world’s deepest operating supergiant oil fields, with the top of the reservoir at approximately 12,000 feet (3,657 m) below ground, Chevron says. Read more at: https://oilprice.com/Latest-Energy-News/World-News/Deadly-Explosion-At-Kazakhstans-Biggest-Oilfield.html |
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Dallas Cowboys criticized for announcing partnership with Black Rifle Coffee after mass shootingThe Cowboys’ recent partnership with Black Rifle Coffee has sparked criticism online. Read more at: https://www.cnbc.com/2022/07/07/dallas-cowboys-criticized-for-partnership-with-gun-themed-coffee-company-.html |
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Hulu is facing an existential crisis as Disney approaches a 2024 deadline to buy Comcast’s 33% stakeIn 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 |
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Donald Trump left the board of his social media company weeks before federal subpoenas, filing showsDonald Trump left the board of his social media company just weeks before it was issued federal subpoenas. Read more at: https://www.cnbc.com/2022/07/07/trump-left-social-media-company-board-before-federal-subpoenas.html |
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American Airlines pilots get triple pay for trips dropped in scheduling glitchAmerican Airlines pilots will get triple pay to fly thousands of trips dropped in scheduling glitch. Read more at: https://www.cnbc.com/2022/07/06/-american-airlines-pilots-get-triple-pay-for-trips-dropped-in-scheduling-glitch.html |
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Casino industry urges federal prosecutors to crack down on illegal operatorsDespite the fact that gambling is legal in much of the U.S., gamblers continue to flock to illegal sites. Read more at: https://www.cnbc.com/2022/07/07/casino-industry-urges-federal-prosecutors-to-crack-down-on-illegal-operators-.html |
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Peloton sweetens employee pay incentives as it fights to boost morale and stage a turnaroundPeloton 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 |
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U.S. safety regulators to probe crash involving self-driving car from GM-backed CruiseFederal vehicle safety regulators will investigate a crash last month in which a vehicle struck a self-driving car from General Motors-backed Cruise. Read more at: https://www.cnbc.com/2022/07/07/us-to-probe-self-driving-car-crash-involving-gm-backed-cruise.html |
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Virgin Galactic announces deal with Boeing subsidiary to build additional aircraft ‘motherships’Space tourism company Virgin Galactic on Wednesday announced a deal with Boeing subsidiary Aurora Flight Sciences to build two additional carrier aircraft. Read more at: https://www.cnbc.com/2022/07/06/virgin-galactic-contracts-boeing-subsidiary-for-aircraft-motherships.html |
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Biden taps Denver airport chief Phil Washington to head the FAAPhil Washington previously led 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 |
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Chipotle’s $50 million search for the future of fast foodChipotle’s $50 million venture fund is investing in technology trying to soothe the margin-squeezing pressure that restaurants face. Read more at: https://www.cnbc.com/2022/07/07/chipotles-50-million-search-for-the-future-of-fast-food.html |
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Volkswagen CEO says EV outlook is ‘very good,’ expects to reduce delivery times this yearVW’s electrification plans put it in direct competition with companies like Elon Musk’s Tesla. Read more at: https://www.cnbc.com/2022/07/07/volkswagen-ceo-says-ev-outlook-is-very-good.html |
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States are spending billions on electric vehicles in battle to replace automotive capital MichiganStates are offering billions in incentives to get EV plants from carmakers including Ford and Rivian, and threatening Michigan’s role as the US auto capital. Read more at: https://www.cnbc.com/2022/07/07/states-spend-billions-on-evs-to-replace-automotive-capital-michigan.html |
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Gasoline futures are dropping, which could mean more relief at the pumpGas prices could be about to drop. Read more at: https://www.cnbc.com/2022/07/07/gasoline-futures-are-dropping-which-could-mean-more-relief-at-the-pump.html |
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“You Know What Would Be Really Irritating? A Crazy Rally To New Highs”Authored by Charles Hugh Smith via OfTwoMinds blog, It would be very irritating to have a rally suck in all the bears salivating for a crash from a bear-market rally peak and then decimate the shorts with a rally that soars rather than collapses to new lows. As a contrarian, I’m always squinting at the consensus and wondering if it is really that easy to be right. Now that everyone is bearish for reasons we all know–global recession, a hot war, energy scarcities, and stagflation– I’m thinking, you know what would be really irritating? A bat-dung crazy rally to new highs in U.S. equities. Irritating, indeed, because few are positioned for this eventuality due to the odds of it happening appearing to be near-zero. What’s odds-on is all the assets that bubbled up in the Everything Bubble sagging back to pre-bubble levels, or lower as global growth craters and stagflation stymies the easy fixes of money-printing and fiscal stimulus. How could stocks soar in such confounding, catastrophic circumstances? It doesn’t seem remotely possible, but when the herd starts running, rationality is not high on its list. When the herd is spooked and panics, rationality is not exactly the order of the day. The herd might thunder off a cliff absolutely convinced of the rightness of the stampede. Alternatively, rationalists stare with growing annoyance at a rally that makes no sense, and then with great r … Read more at: https://www.zerohedge.com/markets/you-know-what-would-be-really-irritating-crazy-rally-new-highs |
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Alaska On Fire: Stunning Satellite Imagery Shows Blackening Skies Over StateAlaska On Fire: Stunning Satellite Imagery Shows Blackening Skies Over State Alaska’s fire season is off to a fiery start, possibly a historic one as more than 2 million acres burned, the earliest date for this milestone in decades. As of Wednesday, more than 200 wildfires rage across the state, with worsening air quality over the central and eastern interior and the western Yukon Territory, Alaska Wildland Fire Information noted on their website.
New satellite imagery (via Visible Infrared … Read more at: https://www.zerohedge.com/weather/alaska-fire-stunning-satellite-imagery-shows-blackening-skies-ever-state |
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CNN Suggests Gun Shops Should Check Buyers’ Social Media Pages Before Agreeing SalesAuthored by Steve Watson via Summit News, In the wake of the shooting on July 4th at Highland Park, and the fact that the shooter had multiple disturbing posts on social media prior to the attack, a CNN host suggested Tuesday that gun shops should check customers’ personal pages before agreeing to sell them firearms.
CNN Newsroom co-host Alisyn Camerota made the suggestion while interviewing former Philadelphia police commissioner Charles Ramsey and former FBI supervisory special agent Steve Moore. Camerota noted that “these suspects … are starting to look alike,” before suggesting “is it too much to ask the gun seller to do a … Read more at: https://www.zerohedge.com/political/cnn-suggests-gun-shops-should-check-buyers-social-media-pages-agreeing-sales |
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DB: When We Get Confirmation Of A Proper Recession, Watch Out BelowMany years ago, before he launched his popular “Chart of the Day” note, one of the most used charts by Deutsche Bank’s Jim Reid was to show how bad credit could get in a recession given the appalling technical setup of the market post-GFC. Given it’s that time again, in his latest CoTD Reid writes that it’s important to dust it down. As Reid explains, basically in good times you can buy a huge amount of bonds at a new issue but a few weeks or months later you can only really deal in fractions of that size in the secondary market at a price close to the market. This doesn’t matter in the good times when inflows are fairly consistently positive and the bulk of long-only investors are comfortable buying and holding. However, in bad times even long-only investors want to protect their short-term performance and all head to the same very narrow door for a part of their portfolio, especially if there are outflows. And, as today’s chart shows, dealer inventories have never recovered from the post-GFC regulatory environment and the ability or desire to warehouse risk is minimal, especially in a crisis. Unfortunately, the data from the New York Fed is not continuous and a time series for pure corporate bonds is only available from 2013 onwards. However, we show the longer time series that includes things like asset-backed securities, and state and muni bonds which gives an idea of the trend even if it may be inflated given the deleveraging seen in structured bonds post GFC. Regardless of the problem of assessing inventories over time, Reid warns that there is no doubt that in his 27 years o … Read more at: https://www.zerohedge.com/markets/deutsche-bank-when-we-get-confirmation-proper-recession-watch-out-below |
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Business groups call for stability as Johnson resignsLeading UK industry groups have called for the ‘political vacuum’ in government to be filled. Read more at: https://www.bbc.co.uk/news/business-62075835?at_medium=RSS&at_campaign=KARANGA |
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Theranos exec Sunny Balwani convicted of fraudHe and fraudster Elizabeth Holmes ran the Silicon Valley company as a couple before its implosion. Read more at: https://www.bbc.co.uk/news/world-us-canada-61902378?at_medium=RSS&at_campaign=KARANGA |
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Pensions scandal: Even more women were underpaidIt is now thought 237,000 people have been underpaid a total of £1.5bn, new figures show. Read more at: https://www.bbc.co.uk/news/business-62085429?at_medium=RSS&at_campaign=KARANGA |
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Tech view: Nifty50 above 50-day SMA; further upside possibleFor the day, the index closed the day at 16,132.90, up 143.10 points or 0.89 percent. This was below the 50-day EMA of 16,150 but above the 50-day SMA of 16,120. Nagaraj Shetti of HDFC Securities said that a long lower shadow for the candle indicates a continuation of upmove post upside breakout of the crucial overhead resistance at 15,900 level. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-above-50-day-sma-further-upside-possible/articleshow/92726855.cms |
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Anil Kumar Goel stayed put on a stock in Q1 that is down 67% since 2017 highThe couple has been holding the owner of India Gate Basmati rice brand at least since the December quarter of 2015, data compiled by Trendlyne suggested. They have been holding on to about a 4 percent stake in the company at least since the previous eight quarters. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/anil-kumar-goel-stayed-put-on-a-stock-in-q1-that-is-down-67-since-2017-high/articleshow/92719739.cms |
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Multibagger returns since Covid lows! The rally is not over in this auto component makerShort-term traders can look at entering the stock now or on dips towards Rs 121-116-105 for a target closer to Rs 200 in the next six months, suggest experts. On the price front, Jamna Auto is trading above all the crucial short and long-term moving averages such as 5, 10, 20, 50, 100, and 200-DMA, which is a positive sign for the bulls. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/chart-check-multibagger-returns-since-covid-lows-the-rally-is-not-over-in-this-auto-component-maker/articleshow/92715138.cms |
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ETF Wrap: Commodity ETFs tumble on recession worries, but catch a rally on ‘Reinflation Day’In this week’s ETF Wrap, you’ll see how hard commodity funds have been hit recently amid growing fears of a recession. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F5B-A3912788F301%7D&siteid=rss&rss=1 |
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Commodities Corner: Why crude released from U.S. oil reserves may have ended up being exported overseasU.S. drivers had high hopes that the historic release of oil from the nation’s Strategic Petroleum Reserve would help ease triple-digit prices of crude oil and reduce gasoline prices at the pump, but costs for both have seen little relief. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F61-7BDDA25E72A3%7D&siteid=rss&rss=1 |
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Bond Report: Treasury curve remains inverted as yields rise after Fed’s hawkish minutesTreasury yields rise to their highest levels in a week on Thursday as investors weigh the prospects for continued Federal Reserve rate hikes. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F5B-1BC8A381EBE3%7D&siteid=rss&rss=1 |
