Summary Of the Markets Today:
- The Dow closed up 35 points or 0.10%,
- Nasdaq closed down 0.18%,
- S&P 500 down 0.12%,
- WTI crude oil settled at 80 down $0.98,
- USD $104.56 down $0.16,
- Gold $1812 down $2.80,
- Bitcoin $17,006 up 0.57% – Session Low 16,861,
- 10-year U.S. Treasury 3.492% down 0.035%
- Baker Hughes Rig Count: U.S. unchanged at 784 Canada +1 to 195
*Stock data, cryptocurrency, and commodity prices at the market closing.
Click here to read our Economic Forecast for December 2022
Today’s Economic Releases:
Total nonfarm payroll employment increased by 263,000 in November, and the unemployment rate was unchanged at 3.7% according to the U.S. Bureau of Labor Statistics (BLS). The biggest job gains were in leisure and hospitality, health care, and government. Employment declined in retail trade and in transportation and warehousing. The BLS reduced the workforce by 186,000. It was interesting that the household survey reduced the number employed by 138,000 – and contrast that with the establishment survey which produces the headline number growth of 263,000. 263,000 is more than a satisfactory employment growth number but I believe there are warning signs in the data – especially in temporary help which fell 17,200 which is a bellwether number indicating softening of the labor market. The graph below compare the ADP growth numbers (blue line) to today’s BLS numbers (red line). From the graph, one can see the continued moderation of employment growth during 2022.
As pandemic concerns recede to probably their lowest point since lockdowns began in early 2020, companies are ready to celebrate in-person with their teams. According to new survey results from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc., 56.9% of companies report they are having in-person holiday parties this year, up from 26.6% who reported this last year and just 5.3% who held in-person parties in 2020. Another nearly 2% will hold virtual events this year, down from 7% in 2021 and 17% in 2020. Nearly 6% of companies reported they held in-person gatherings outside, during warm weather this year in lieu of holding year-end celebrations.
A summary of headlines we are reading today:
- Asia Splurges On Record Oil Imports Ahead Of Sanctions On Russia
- The Environmental Consequence Of Burning Rubber
- U.S. Oil, Gas Drilling Activity Goes Nowhere
- Senate approves bill enforcing railroad labor agreement before strike deadline, sends to Biden
- FCC authorizes SpaceX to begin deploying up to 7,500 next-generation Starlink satellites
- The Fed Is Not “A Good Idea That Became Corrupt”: It Always Was Corrupt
- Futures Movers: Oil ends lower for the session, up for the week, ahead of OPEC+ meeting, EU ban on Russian oil
- Retail and warehousing jobs actually fell in November. It reveals a lot about the typical holiday shopper.
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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Asia Splurges On Record Oil Imports Ahead Of Sanctions On RussiaThe biggest buyers in Asia imported a record volume of oil in November as the world’s major importers rushed to stock up on cheaper crude ahead of the EU embargo and the price cap on Russian oil in effect from December 5. Lower benchmark prices and the push to secure oil supplies before the sanctions against Russia create additional uncertainties in terms of marine transportation services and, possibly, a shortage of tankers. To get under the wire of these tough market conditions, China, India, Japan, and South Korea imported high crude volumes Read more at: https://oilprice.com/Energy/Crude-Oil/Asia-Splurges-On-Record-Oil-Imports-Ahead-Of-Sanctions-On-Russia.html |
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Short-Term Outlook Dims For Copper PricesLet’s begin with the good news first. Global copper mine capacity rose nearly 5% to 20.38 million tons (MT) between January and September of 2022. According to a report by the International Copper Study Group (ICSG), this was mainly due to the additional production at new or expanded mines. That said, global demand for metal was also up. Indeed, in the first nine months of the year, demand rose 2.6% to nearly 19.30 MT. This is rather good news for those concerned with current copper price trends. Production Up in DRC and China, but Read more at: https://oilprice.com/Metals/Commodities/Short-Term-Outlook-Dims-For-Copper-Prices.html |
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Lukoil Says Its Italian Refinery Will Continue Operations After EU EmbargoLukoil, which owns a large refinery in Sicily in Italy, said on Friday that it is ready to ensure continued operations at the site after the EU embargo on imports of Russian crude by sea takes effect on December 5, thanks to oil storage and future deliveries of non-Russian oil. Lukoil, which owns the ISAB refinery in Sicily, said via its unit LITASCO that it is ready to ensure uninterrupted operation of the refinery, given the feedstock stored up for the coming months and future deliveries of non-Russian origin oil. The ISAB refinery Read more at: https://oilprice.com/Latest-Energy-News/World-News/Lukoil-Says-Its-Italian-Refinery-Will-Continue-Operations-After-EU-Embargo.html |
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The Environmental Consequence Of Burning RubberHave you ever wondered what happens to the rubber tread that wears off a vehicle’s tires? On a planet with hundreds of millions of vehicles, there has to be quite a lot somewhere. New modeling at the University of British Columbia Okanagan (UBCO) campus suggests an increasing amount of what are microplastics, the fragments from tires and roadways, are ending up in lakes and streams. The UBCO School of Engineering researchers developed a conceptual framework to examine the potential contamination originating from the regular use of vehicles Read more at: https://oilprice.com/The-Environment/Global-Warming/The-Environmental-Consequence-Of-Burning-Rubber.html |
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Poland Approves $60 G7 Oil Price CapPoland has agreed to a $60 price cap on Russian crude oil, Poland’s Ambassador to the EU, Andrzej Sados, said on Friday. The EU tentatively agreed on a $60 oil cap yesterday, but analysts feared that Polandoriginally holding out for a much lower price cap would refuse to sign off on a $60 cap. The G7 proposal to cap the price of Russian seaborne crude oil initially met resistance from Poland, Estonia, and Lithuania as those countries were hoping for a much lower cap even a $20 or $30 cap. Because Poland ask was Read more at: https://oilprice.com/Latest-Energy-News/World-News/Poland-Approves-60-G7-Oil-Price-Cap.html |
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U.S. Oil, Gas Drilling Activity Goes NowhereThe number of total active drilling rigs in the United States stayed the same this week, according to new data from Baker Hughes published on Friday. The total rig count stayed at 784 this week215 rigs higher than the rig count this time in 2021, and 291 rigs lower than the rig count at the beginning of 2019, prior to the pandemic. Oil rigs in the United States held steady this week, at 627, while gas rigs stayed at 155. Miscellaneous rigs stayed the same at 2. The rig count in the Permian Basin fell by 2 this week to 350. Rigs in the Eagle Read more at: https://oilprice.com/Energy/Energy-General/US-Oil-Gas-Drilling-Activity-Goes-Nowhere.html |
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Ford claims No. 2 spot in EVs behind Tesla – but gap remains wideFord topped Hyundai after the South Korean automaker lost incentive of consumer tax credits up to $7,500 for buyers of its EVs. Read more at: https://www.cnbc.com/2022/12/02/ford-claims-no-2-spot-in-evs-behind-tesla-passing-hyundai.html |
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Astra chief engineer resigns, CEO shakes up management ‘to execute faster’Beleaguered rocket-builder Astra is losing highly touted chief engineer Benjamin Lyon, the company announced Friday. Read more at: https://www.cnbc.com/2022/12/02/astra-chief-engineer-benjamin-lyon-resigns-from-rocket-builder.html |
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CNN lays off hundreds of staffers after business review − read the memoCNN laid off hundreds of employees across the company Thursday, the culmination of a six-month business review from new CEO Chris Licht. Read more at: https://www.cnbc.com/2022/12/01/cnn-lays-off-hundreds-of-staffers-read-the-memo.html |
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Senate approves bill enforcing railroad labor agreement before the strike deadline, sends to BidenThe Senate passed legislation that would force a tentative rail labor agreement and thwart a national strike. Read more at: https://www.cnbc.com/2022/12/01/senate-passes-rail-labor-agreement-ahead-of-strike-sends-to-biden.html |
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FCC authorizes SpaceX to begin deploying up to 7,500 next-generation Starlink satellitesThe FCC issued a key authorization to Elon Musk’s SpaceX, granting approval to launch up to 7,500 of its next-generation Starlink internet satellites. Read more at: https://www.cnbc.com/2022/12/01/fcc-authorizes-spacex-gen2-starlink-up-to-7500-satellites.html |
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GM, LG investing $275 million to expand Tennessee EV battery plantThe new investment is expected to increase EV battery production by more than 40%. Read more at: https://www.cnbc.com/2022/12/02/gm-lg-investing-275-million-to-expand-tennessee-ev-battery-plant.html |
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Biden condemns antisemitism as Ye praises Hitler days after dinner with Trump, white nationalist FuentesBiden condemned antisemitism and took an apparent shot at former President Donald Trump after he dined with the rapper Ye and white nationalist Nick Fuentes. Read more at: https://www.cnbc.com/2022/12/02/biden-condemns-antisemitism-after-ye-praises-hitler-post-trump-dinner.html |
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‘A lot of people are going to see less money in their pocket.’ Here are must-know tax changes for 2022There are significant changes for the 2022 tax season. Here’s what taxpayers need to know. Read more at: https://www.cnbc.com/2022/12/02/the-biggest-tax-changes-to-know-before-filing-your-2022-return.html |
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Carnival’s Princess Cruises will return to Japan in March 2023 after nearly three-year hiatusPrincess Cruises will launch trips from Tokyo starting next year, after Japan lifted its ban on international cruises. Read more at: https://www.cnbc.com/2022/12/02/carnivals-princess-cruises-will-return-to-japan-after-over-two-years.html |
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Activision acquisition would be good for Microsoft and the overall stock marketCompleting the deal will send a message that the Biden administration is not closed off to all M&A. Read more at: https://www.cnbc.com/2022/12/02/activision-acquisition-would-be-good-for-microsoft-and-the-overall-stock-market.html |
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Stocks making the biggest moves midday: Zscaler, Marvell Technology, DoorDash and moreThese are the stocks posting the largest moves in midday trading. Read more at: https://www.cnbc.com/2022/12/02/stocks-making-the-biggest-moves-midday-zscaler-marvell-doordash-and-more.html |
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Drew Brees fakes lightning strike in a promotional stunt for online sportsbookLegendary New Orleans Saints quarterback Drew Brees faked being struck by lightning as part of a promotional stunt for betting company PointsBet. Read more at: https://www.cnbc.com/2022/12/02/drew-brees-lightning-strike-is-fake-promotional-stunt-for-online-sportsbook.html |
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Ye’s deal to buy conservative social media app Parler is called offConservative social media company Parler said Thursday its deal to be bought by Ye has been terminated. Read more at: https://www.cnbc.com/2022/12/01/ye-deal-to-buy-parler-called-off.html |
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Trump Team Making ‘Big Changes’ After Kanye West Dinner: GOP LawmakerAuthored by Jack Phillips via The Epoch Times (emphasis ours), Rep. Marjorie Taylor Greene (R-Ga.) said that former President Donald Trump’s team is making significant changes to his Mar-a-Lago’s vetting process following his meeting with rapper Kanye West and Nick Fuentes.
Former President Donald Trump arrives at Trump Tower the day after FBI agents raided his Mar-a-Lago Palm Beach home, in New York on Aug. 9, 2022. (David ‘Dee’ Delgado/Reuters)Greene told reporters Tuesday that “Trump had no idea [Fuentes] was even coming” and described the incident as “unfortunate.” Over the weekend, Trump confirmed on Truth Social that West, also known as Ye, and Fuentes met with him at his Florida resort. Follo … Read more at: https://www.zerohedge.com/political/trump-team-making-big-changes-after-kanye-west-dinner-gop-lawmaker |
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Prosecutors, SEC Squeeze FTX Associates For InformationWhile FTX founder Sam Bankman-Fried continues to make lawyers cringe every time he opens his mouth, US authorities are seeking information from investors and trading firms that worked closely with the company.
According to Bloomberg, the US Attorney’s Office for the Southern District of New York (SDNY) has recently sent out a flood of requests seeking information on a list of FTX employees and associates.
In a parallel investigation, attorne … Read more at: https://www.zerohedge.com/political/prosecutors-sec-squeeze-ftx-associates-information |
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The Fed Is Not “A Good Idea That Became Corrupt”: It Always Was CorruptAuthored by George Ford Smith via The Mises Institute, There’s an idea rooted among some libertarians that the Federal Reserve was originally a sound institution but has grown corrupt. As a bankers’ bank, it was fine, they believe, but not as the monster it has grown to be. If we could only go back to the Fed’s founding charter, all would be well.
I’m thinking of two well-known financial analysts who are unsurpassed in their analytical brilliance and knowledge of markets and who rightly regard the bureaucratic Federal Open Market Committee (FOMC) as the father of bubbles, busts, stagnation, and market privilege. In their articles, Peter Schiff and David Stockman hammer the Fed relentlessly and rightfully for its cluelessness, corruption, and threat to our material and spiritual well-being. They have authored engaging bestsellers on the state of the economy and place blame where it belongs, on … Read more at: https://www.zerohedge.com/markets/fed-not-good-idea-became-corrupt-it-always-was-corrupt |
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EU To Set $60 Price Cap On Russian Oil; Kremlin Vows To Ignore, Cut SupplyThe European Union reached a deal on Friday to cap Russian oil at $60 a barrel, paving the way for G7 nations to launch an ‘unprecedented mechanism,’ as the Wall Street Journal reports.
Read more at: https://www.zerohedge.com/commodities/eu-set-60-price-cap-russian-oil-kremlin-vows-ignore-cut-supply |
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Tesco shoppers switching from fresh to frozen foodThe supermarket boss says there have been many changes to how people shop due to the cost of living. Read more at: https://www.bbc.co.uk/news/business-63832753?at_medium=RSS&at_campaign=KARANGA |
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Royal Mail says people should send Christmas post earlyStrikes mean people should send their festive mail earlier than usual, the postal service advises. Read more at: https://www.bbc.co.uk/news/business-63837831?at_medium=RSS&at_campaign=KARANGA |
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Train strikes: RMT union hopeful of offer to end rail disputeThe RMT says things are “definitely moving” in the pay dispute, with talks to continue over the weekend. Read more at: https://www.bbc.co.uk/news/business-63832933?at_medium=RSS&at_campaign=KARANGA |
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Despite sharp rally, 13 FMCG stocks trading below lifetime highs; what should you do?Moreover, the rebound in shares has not been broad-based, as most midcap stocks remained out of favour. On a YTD basis, stocks like Emami, Marico, and Godrej Consumer Products have given negative returns. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/despite-sharp-rally-13-fmcg-stocks-trading-below-lifetime-highs-what-should-you-do/articleshow/95929397.cms |
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Softbank sells 5.1% stake in Policybazaar for Rs 1,043 croreSVF India offloaded 2,28,42,424 shares, amounting to 5.08% stake in the company Read more at: https://economictimes.indiatimes.com/markets/stocks/news/softbank-sells-5-1-stake-in-policybazaar-for-rs-1043-crore/articleshow/95945077.cms |
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Futures Movers: Oil ends lower for the session, up for the week, ahead of OPEC+ meeting, EU ban on Russian oilOil futures end lower on Friday, but up for the week, ahead of Sunday’s OPEC+ meeting and Monday’s launch of a European Union ban on Russian crude imports. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7160-EC74318AEF59%7D&siteid=rss&rss=1 |
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The Moneyist: My father, 72, dropped a bombshell — he has a 9-year-old son. What happens to his $10 million estate?‘My father is going to update his will and estate plan. He has asked us for suggestions on how to handle this.’ Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-715A-E9E024F8B3ED%7D&siteid=rss&rss=1 |
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Retail and warehousing jobs actually fell in November. It reveals a lot about the typical holiday shopper.Month to month, retail employment declined 30,000, the Labor Department said. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7161-56E120CA8559%7D&siteid=rss&rss=1 |
Tugboats escorted a tanker following a delivery of Russian diesel to a fuel terminal in Purfleet, U.K., in early April. Photo: Chris J. Ratcliffe/Bloomberg NewsThe move came after overcoming a last-minute push by Poland to lower the cap, for which the European Commission had originally proposed between $65 and $70 per barrel. In short, the EU came down to Poland’s price, which had become a point of con …