Summary Of the Markets Today:
- The Dow closed up 424 points or 1.27%,
- Nasdaq closed up 2.09%,
- S&P 500 up 1.73%,
- WTI crude oil settled at $92 down 2.53%,
- USD $105.64 up 0.52%,
- Gold $1801 down 0.05%,
- Bitcoin $24,165 up 0.17% – Session Low 23,654,
- 10-year U.S. Treasury 2.838% down 0.05%
- Baker Hughes Rig Count: U.S. -1 to 763 Canada -2 to 201
Today’s Economic Releases:
Following along the path of the Consumer Price Index and the Producer Price Index, Import and Export Price growth slowed in July 2022. U.S. import prices moderated from 10.7% year-over-year to 8.8%. Export prices moderated from 18.1% year-over-year to 13.1%. Import prices are what affect the average consumer but there is no correlation between import price inflation and economic growth.
The U.S. economy looks weaker now than it did three months ago, according to 35 forecasters surveyed by the Federal Reserve Bank of Philadelphia.
Median Forecasts for Selected Variables in the Current and Previous Surveys
| REAL GDP (%) | UNEMPLOYMENT RATE (%) | PAYROLLS (000S/MONTH) | |||||||
|---|---|---|---|---|---|---|---|---|---|
| PREVIOUS | NEW | PREVIOUS | NEW | PREVIOUS | NEW | ||||
| Quarterly data: | |||||||||
| 2022:Q3 | 2.5 | 1.4 | 3.5 | 3.5 | 293.7 | 342.5 | |||
| 2022:Q4 | 2.3 | 1.2 | 3.5 | 3.7 | 193.2 | 167.9 | |||
| 2023:Q1 | 2.1 | 1.1 | 3.5 | 3.8 | 158.8 | 89.0 | |||
| 2023:Q2 | 2.3 | 1.5 | 3.5 | 3.9 | 61.3 | 96.6 | |||
| 2023:Q3 | N.A. | 1.5 | N.A. | 4.0 | N.A. | 80.7 | |||
Preliminary University of Michigan consumer sentiment moved up very slightly this month to about 5 index points above the all-time low reached in June. All components of the expectations index improved this month, particularly among low and middle-income consumers for whom inflation is particularly salient.
| Aug | Jul | Aug | M-M | Y-Y | |
| 2022 | 2022 | 2021 | Change | Change | |
| Index of Consumer Sentiment | 55.1 | 51.5 | 70.3 | +7.0% | -21.6% |
| Current Economic Conditions | 55.5 | 58.1 | 78.5 | -4.5% | -29.3% |
| Index of Consumer Expectations | 54.9 | 47.3 | 65.1 | +16.1% | -15.7% |
A summary of headlines we are reading today:
- Oil Prices Fall As Demand Concerns Persist
- Gulf Of Mexico Pipelines Could Restart Today
- Even airline employees are having trouble finding a seat home from Europe this summer
- Best Buy cuts jobs across the country, after warning of slower sales
- Texas Joins 18 States To Oppose Blackrock’s Woke Agenda
- Pension Funds Suffer Worst Year Since 2009
- Market Extra: Stock buybacks near $800 billion this year after hitting all-time record
- Bond Report: Treasury yields end higher for a second straight week after U.S. consumer-sentiment data
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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Colombia’s New Leftwing President Is Hiking Taxes On Its Oil IndustryAfter an electoral victory, which shocked many in and outside of Colombia, long-time senator and former leftist guerilla Gustavo Petro was inaugurated as Colombia’s President last Sunday. The once controversial mayor of the capital Bogota campaigned on a platform of ending extractive industries in the Andean country, including banning hydraulic fracturing and ceasing the award of new licenses for oil exploration. That triggered considerable consternation among many analysts, industry insiders, and economists because of Colombia’s tremendous Read more at: https://oilprice.com/Energy/Crude-Oil/Colombias-New-Leftwing-President-Is-Hiking-Taxes-On-Its-Oil-Industry.html |
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Oil Prices Fall As Demand Concerns PersistCrude prices fell on Friday morning, erasing some gains as traders remain cautious to go long on crude again. August 12th, This week has been quite tumultuous in the oil markets, starting off with a pervasive feeling of demand gloom yet recording a weekly gain in the end, greatly aided by flat US inflation data and pipeline supply disruptions in Europe. One of the most interesting developments has been the increasingly diverging worldview of OPEC and the IEA. OPEC has been lowering its demand forecasts for 2022, this week by another 260,000 b/d Read more at: https://oilprice.com/Energy/Energy-General/Oil-Prices-Fall-As-Demand-Concerns-Persist.html |
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The Most Overlooked Equity Market In The World Right NowThe value investor has become something of an endangered species over the last decade, pushed to the side-lines of a market fixated on seeking never-ending growth in areas such as technology. The underperformance of the value investment style has been much discussed and barring a relatively short rally this year- mostly painful for deep value investors such as us on the value investment team at Schroders. The result is a wide chasm in the valuations of the cheapest shares and the most expensive. This has not gone unnoticed. Indeed, one Read more at: https://oilprice.com/Finance/the-Markets/The-Most-Overlooked-Equity-Market-In-The-World-Right-Now.html |
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Gulf Of Mexico Pipelines Could Restart TodayGulf of Mexico offshore oil producers are working to restart output after damages to a pipeline halted operations at seven platforms, with Reuters reporting that the pipeline could be replaced by the end of today. The Mars and Amberjack pipelines in the Gulf of Mexico that had shuttered earlier in the week could be restarted today, a Louisiana port official Chett Chiasson told Reuters on Friday. The shutdown of the Mars and Amberjack pipelines triggered platform shutdowns on Thursday from Shell, Equinor, and Chevron across seven platforms following Read more at: https://oilprice.com/Latest-Energy-News/World-News/Gulf-Of-Mexico-Pipelines-Could-Restart-Today.html |
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Major Petroleum Corridor At Risk Of Closure Due To Low Water LevelsEuropes supply of fuels such as coal and petroleum products faces further disruptions in the coming days as the water levels on the Rhine Rivera key waterway for barge transportation are expected to sink below the level of navigability. The Rhine River, which runs northwest from Switzerland through Germany, France, and the Netherlands into the North Sea, is a major petroleum product transportation corridor in Europe. Due to heat waves and drought this summer in Europe, the levels on the river are low and have now become Read more at: https://oilprice.com/Latest-Energy-News/World-News/Major-Petroleum-Corridor-At-Risk-Of-Closure-Due-To-Low-Water-Levels.html |
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U.S. Drilling Activity Sees Decline For Second Straight WeekThe number of total active drilling rigs in the United States fell by 1 this week, according to new data from Baker Hughes published on Friday. It is the second decline in as many weeks. The total rig count fell to 763 this week262 rigs higher than the rig count this time in 2021. Oil rigs in the United States rose by 3 this week to 601. Gas rigs fell by 1, to 160. Miscellaneous rigs dropped 3. The rig count in the Permian Basin fell by 1 to 346 this week. Rigs in the Eagle Ford stayed the same at 72. Oil and gas rigs in the Permian are Read more at: https://oilprice.com/Energy/Energy-General/US-Drilling-Activity-Sees-Decline-For-Second-Straight-Week.html |
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Peloton slashing 780 jobs, closing stores, and hiking prices in push to turn profitPeloton is slashing about 780 jobs, closing a significant number of its retail stores, and hiking the prices of some of its equipment in a bid to be profitable. Read more at: https://www.cnbc.com/2022/08/12/peloton-shares-jump-as-company-announces-price-hikes-for-some-products.html |
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Even airline employees are having trouble finding a seat home from Europe this summerAmerican Airlines and United Airlines are among the carriers discouraging employees from using their travel perks to fly to Europe this summer. Read more at: https://www.cnbc.com/2022/08/12/europe-travel-airlines-halt-some-staff-flight-perks-buddy-passes.html |
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Salman Rushdie stabbed in the neck in NY attack, ‘Satanic Verses’ writer airlifted to hospitalSalman Rushdie was attacked at a Chautauqua Institution panel in western New York on Friday. Read more at: https://www.cnbc.com/2022/08/12/salman-rushdie-attacked-during-panel-in-western-new-york-report-says.html |
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Best Buy cuts jobs across the country, after warning of slower salesThe retailer cut its sales forecast in late July, saying consumers are skipping over big-ticket items as they get hit by inflation. Read more at: https://www.cnbc.com/2022/08/12/best-buy-cuts-hundreds-of-store-jobs-as-sales-soften-according-to-report.html |
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Clothing subscriptions like Stitch Fix were once hot – but now might be the victims of ‘box fatigue’Retailers rushed to enter the subscription space, curating boxes of clothing and other items. But consumers are showing signs they’re no longer interested. Read more at: https://www.cnbc.com/2022/08/12/why-box-fatigue-may-be-hitting-the-apparel-industry-stitch-fix.html |
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Investors are piling into high-yield bonds. What to know before adding ‘junk’ to your portfolioWith a recent influx of money pouring into high-yield bonds, financial experts urge caution before piling in. Here’s what investors need to know. Read more at: https://www.cnbc.com/2022/08/12/investors-are-piling-into-junk-bonds-what-to-know-before-buying.html |
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Disney is raising prices, but this time, don’t blame inflationDisney is raising prices on the strength of its brand and products rather than because of inflation. Read more at: https://www.cnbc.com/2022/08/11/disney-is-raising-prices-but-this-time-dont-blame-inflation.html |
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Rivian posts second-quarter revenue above estimates but expects a wider loss for the yearElectric vehicle maker Rivian maintained its full-year guidance for deliveries but trimmed its full-year financial outlook. Read more at: https://www.cnbc.com/2022/08/11/rivian-rivn-earnings-q2-2022.html |
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U.S. Postal Service to temporarily hike prices for the holiday seasonThe United States Postal Service filed a notice Wednesday of a temporary price hike for the 2022 peak holiday season. Read more at: https://www.cnbc.com/2022/08/11/us-postal-service-to-temporarily-hike-prices-for-holiday-season.html |
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GM reveals new GMC Canyon premium midsize pickup, starting at $40,000GM expects to begin producing the 2023 Canyon early next year, with new AT4X off-road models beginning in spring. Read more at: https://www.cnbc.com/2022/08/11/gm-reveals-new-gmc-canyon-premium-midsize-pickup-starting-at-40000.html |
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Warby Parker slashes sales outlook for the year as loss widensWarby Parker on Thursday joined the slew of retailers that have cut their financial forecasts for the year. Read more at: https://www.cnbc.com/2022/08/11/warby-parker-wrby-reports-q2-2022-losses.html |
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Polio detected in New York City sewage suggesting local circulation of the virus, health officials sayHealth officials are aggressively assessing how far polio has spread in the city and in New York state. Read more at: https://www.cnbc.com/2022/08/12/polio-detected-in-new-york-city-sewage-suggesting-local-circulation-of-virus-health-officials-say.html |
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Biden senior advisor Anita Dunn has to divest an investment portfolio worth between $16.8 million and $48.2 million to avoid conflictsDunn’s financial disclosures show extensive stock, options, bond, and private equity holdings — a fortune she and her husband have amassed over the years. Read more at: https://www.cnbc.com/2022/08/12/biden-senior-advisor-anita-dunn-has-to-divest-investment-portfolio-to-avoid-conflict.html |
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Texas Joins 18 States To Oppose Blackrock’s Woke AgendaAuthored by Darlene McCormick Sanchez via The Epoch Times (emphasis ours), Texas joined a group of Republican-led states accusing BlackRock Inc. of putting woke investment criteria above shareholder profits in state pension funds.
Texas Attorney General Ken Paxton said in an Aug. 8 news release that ESG climate goals harm Texas’s oil and gas economy and state pension fund per … Read more at: https://www.zerohedge.com/political/texas-joins-18-states-oppose-blackrocks-woke-agenda |
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Pension Funds Suffer Worst Year Since 2009It sure is looking like the public pension Ponzi is going to be even harder to sustain than over the last few years… That’s because data released by Wilshire Trust Universe Comparison Service this week showed that public pension funds fell a median of 7.9% for the year ended June 30. It marks their “worst annual performance since 2009,” according to reporting by the Wall Street Journal. Much of the drawdown came as the result of a market-wide realignment of risk tolerance that took place in Spring, as a result of higher inflation. The selloff in both stocks and bonds contributed to the losses. Michael Rush, a senior vice president at Wilshire, said frankly: “It was a really, really bad quarter for investing, there’s no way around it.” As a result, the losses will result in higher annual retirement contributions in coming years, and likely a slew of CIO changes at pension funds across the country (stop us if you’ve heard this one before). Read more at: https://www.zerohedge.com/markets/pension-funds-suffer-worst-year-2009 |
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House Dems Urge Biden To Reverse Cuba Sanctions, Provide Disaster Relief, After Oil Depot FireHouse Dems Urge Biden To Reverse Cuba Sanctions, Provide Disaster Relief, After Oil Depot FireAuthored by Kenny Stancil via Common Dreams, A trio of House Democrats this week publicly urged President Joe Biden to provide immediate assistance to Cuba amid the catastrophic oil fire devastating parts of the nearby island. “We are deeply concerned about the humanitarian disaster unfolding in Matanzas, Cuba, less than 150 miles from our border,” Reps. Gregory Meeks (N.Y.), Barbara Lee (Calif.), and Jim McGovern (Mass.) said in a joint statement. “Crises such as this demand an urgent and meaningful response from neighboring countries.” The lawmakers called on the Biden administration “to immediately offer the appropriate assistance to facilitate international response efforts following explosions at the Supertanker Base in Matanzas.” Read more at: https://www.zerohedge.com/political/house-dems-urge-biden-reverse-cuba-sanctions-provide-disaster-relief-after-oil-depot-fire |
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“Cash Is Oxygen”: In Sweeping Restructuring Peloton Announces Third Round Of Layoffs, Raises Bike PricesThe darling stock of the covid era, Peloton, is cutting even more muscle to extend its cash-incinerating existence now that Americans are back to being their jolly old fat selves, making glorified coathangers with superglued iPads even more superfluous, and according to Bloomberg, Peloton – which has repeatedly slashed guidance in the past year – will embark on a sweeping restructuring that includes cutting nearly 800 jobs, raising prices for its Bike+ and Tread machines, and outsourcing functions such as equipment deliveries and customer service to outside companies. The changes, which were disclosed in a Friday memo to employees, also include gradually closing many of its retail showroomsm, a process that will get underway next year. It’s the most wide-ranging shake-up yet under CEO Barry McCarthy, a tech veteran who took the helm in February, and who has been tasked with finding a buyer for the melting ice cube. As Bloomberg notes, Peloton hopes to turn around a business that thrived during the early days of the pandemic but suffered a crushing slowdown in the past year with declining sales, mounting losses, and a stock price that is down nearly 90% over the past 12 months. The latest moves are an attempt to reinvigorate sales, boost efficiency and restore some of Peloton’s former cachet. “We have to make our revenues stop shrinking and start growing again,” McCarthy said in the memo provided to Bloomberg, adding that the changes are essential to making Peloton cash-flow positive again. “Cash is oxygen. Oxygen is life. … Read more at: https://www.zerohedge.com/markets/cash-oxygen-sweeping-restructuring-peloton-announces-third-round-layoffs-raises-bike-prices |
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UK economy shrinks as outlook on recession darkensThe economy shrank by 0.1% leading some experts to warn a recession could start sooner than expected. Read more at: https://www.bbc.co.uk/news/business-62504789?at_medium=RSS&at_campaign=KARANGA |
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Bike seller Peloton and meditation app Calm cut jobsAfter pandemic success, exercise product maker Peloton and meditation app Calm slash jobs. Read more at: https://www.bbc.co.uk/news/business-62523708?at_medium=RSS&at_campaign=KARANGA |
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Co-op joins rivals in dropping disposable barbecuesSainsbury’s, Morrisons, and Tesco are among retailers who have also stopped sales due to the heatwave. Read more at: https://www.bbc.co.uk/news/business-62510098?at_medium=RSS&at_campaign=KARANGA |
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Tech View: Nifty50 gains for fifth day; strong resistance aheadNagaraj Shetti, Technical Research Analyst, HDFC Securities, said Friday’s daily candle indicates the formation of a High Wave-type candle pattern. Having formed this pattern within a narrow range movement, the predictability of this pattern could be less, he said. “However, High Wave displays high volatility in the market,” Shetti said. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-gains-for-fifth-day-strong-resistance-ahead/articleshow/93523820.cms |
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Asian Paints looks to ramp up its home décor business. Will it emerge successful?The paint industry is highly dependent on the performance of the real estate sector, which has been sluggish for the past few years. Paint companies have entered various businesses to decrease their dependence on the realty segment. According to the FY22 annual report of Asian Paints Ltd, it is the leading paint manufacturer in India and has not fallen behind other companies when it comes to diversifying its portfolio. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/asian-paints-looks-to-ramp-up-home-dcor-business-will-it-emerge-successful/articleshow/93516556.cms |
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Aditya Birla Capital says ADIA to invest Rs 665 crore in health insurance JV“Aditya Birla Health Insurance has a strong management team, a wellness-first product offering, and a differentiated distribution model. We look forward to partnering with Aditya Birla Capital and Momentum Metropolitan Holdings to support the next phase of ABHI’s growth.” Read more at: https://economictimes.indiatimes.com/markets/stocks/news/aditya-birla-capital-says-adia-to-invest-rs-665-crore-in-health-insurance-jv/articleshow/93515650.cms |
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Market Extra: Stock buybacks near $800 billion this year after hitting all-time recordCompanies are announcing another huge deluge of stock buybacks this year. The proposed 1% tax under the Inflation Reduction Act probably isn’t a game changer. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-710E-294F808F111F%7D&siteid=rss&rss=1 |
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Bond Report: Treasury yields end higher for a second straight week after U.S. consumer-sentiment dataTreasury yields trade mixed on Friday, though post weekly advances, after data showing that U.S. consumer sentiment has risen this month. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-710D-ACE35F388B41%7D&siteid=rss&rss=1 |
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Top-secret documents, info on the ‘President of France’ and a Roger Stone clemency grant: What the FBI reportedly took from Trump’s Mar-a-LagoDetails of what the FBI took from former President Donald Trump’s Florida estate have begun leaking out Friday, with reports saying agents removed 11 sets of classified documents — including some marked top secret. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-710E-564B4F8043D9%7D&siteid=rss&rss=1 |
BlackRock CEO Larry Fink attends a session at the World Economic Forum annual meeting in Davos on Jan. 23, 2020. (Fabrice Coffrini/AFP via Getty Images)In a letter to BlackRock CEO Larry Fink, 19 attorneys general, mainly from conservative states, challenged his company’s reliance on environmental, social, and governance criteria at the expense of investor returns.