Summary Of the Markets Today:
- The Dow closed down 287 points or 0.86%,
- Nasdaq closed down 0.49%,
- S&P 500 closed down 0.72%,
- Gold $2,058 up $20.20,
- WTI crude oil settled at $68 down $0.11,
- 10-year U.S. Treasury 3.366% down 0.037 points,
- EUR/USD $1.101 up $0.005,
- Bitcoin $28,871 up $512,
*Stock data, cryptocurrency, and commodity prices at the market closing.
Click here to read our Economic Forecast for May 2023
Today’s Economic Releases:
The Bureau of Labor Statistics (BLS) released its report on productivity and costs for the first quarter of 2023 showing that productivity decreased 0.9% from one year ago. Unit labor costs, which measure the cost of labor per unit of output, increased 5.8% from one year ago. It is hard to understand how productivity could be declining – and usually is a sign that orders are slowing (and usually associated with recessions).
The advance figure for seasonally adjusted initial unemployment insurance claims for the week ending April 29, 2023 was 242,000. The 4-week moving average was 239,250, an increase of 3,500 from the previous week’s revised average. The previous week’s average was revised down by 250 from 236,000 to 235,750. The increase in the 4-week moving average suggests that the labor market is slowing down. However, it is important to keep in mind that the labor market is still very strong. The unemployment rate is at a 50-year low, and businesses are still hiring at a rapid pace.
The U.S. international trade deficit in goods and services narrowed to $64.2 billion in March 2023. Exports of goods increased to $256.2 billion, while imports of goods decreased to $320.4 billion.The narrowing of the trade deficit in March 2023 was due to a number of factors, including:
- A decline in imports of oil and other petroleum products.
- An increase in exports of agricultural products.
- An increase in exports of transportation equipment.
- A decrease in imports of consumer goods.
Small business owners continue to struggle to find workers, with 45% (seasonally adjusted) of all owners reporting job openings they could not fill in the current period. The share of owners with unfilled job openings exceeds the 49-year historical average of 23%. Of those hiring or trying to hire, 92% of owners reported few or no qualified applications for the positions they were trying to fill. “The labor market continues to be a big challenge for small business owners,” said NFIB Chief Economist Bill Dunkelberg. “More owners are raising compensation to compete, but labor quality remains a serious problem for owners.” Overall, 60% of owners reported hiring or trying to hire in April. Twenty-nine percent of owners reported few qualified applicants for their open positions and 26% reported none.
A summary of headlines we are reading today:
- What New York’s Ban On Natural Gas Stoves And Heaters Means For The Country
- Turkey Makes Huge 1-Billion-Barrel Oil Discovery
- Saudi Arabia Cuts Price Of Oil To Asia
- China’s Economic Concerns Add To Oil Market Uncertainty
- Regional bank stocks continue to slide on Thursday with PacWest leading the way down 54%
- Stocks close lower for a fourth day on renewed bank worries, Dow goes negative for 2023: Live updates
- Crypto has ‘lost its shine’ for institutional investors, says Northern Trust executive
- AMD jumps 9% on report Microsoft is collaborating on A.I. chip push
- Trump Dominates GOP Field In Early Endorsements—Leads DeSantis By 72–5
- In One Chart: Fed ‘policy mistake’? Why a tumbling 2-year Treasury yield is spooking investors
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.
The Market in Perspective
| Here are the headlines moving the markets. | |
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A Secret War Is Brewing In The South China SeaAfter a period of relative calm and quiet, there is once again a geopolitical storm brewing out in the South China Sea. This time, there are dual face-offs: one minor spat between China and Malaysia, and another seriously major spat between China and the Philippines. The South China Sea is one of the most heavily trafficked maritime routes in the entire world. However, the conditions that make it so valuable – namely, its location on the coasts of a considerable number of Asian countries – have also led to major regional tensions… Read more at: https://oilprice.com/Energy/Energy-General/A-Secret-War-Is-Brewing-In-The-South-China-Sea.html |
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Why Cobalt Prices Have Fallen To A 4-Year LowBy the AGMetalminer team The cobalt price index fell below $26,000 per tonne as of April 2023, its lowest level since 2019. Indeed, while cobalt demand remains largely steady, there has been a significant increase in supply. Meanwhile, analysts expect the demand for refined cobalt, frequently used in rechargeable batteries, to increase by 8% to 205,000 tonnes by 2023. However, they also anticipate supply to increase by 24% to roughly 210,000 tonnes. Forecasts predict the Democratic Republic of the Congo will deliver 180,000 tonnes of cobalt this… Read more at: https://oilprice.com/Energy/Energy-General/Why-Cobalt-Prices-Have-Fallen-To-A-4-Year-Low.html |
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Iraq And Kurdistan Close To Deal On Oil ExportsBaghdad and Erbil are set to reach an agreement over crude oil exports from Iraq’s semi-autonomous Kurdistan region within the next two weeks, Iraq’s oil minister said on Wednesday. “All indicators are positive,” Iraq’s oil minister, Hayyan Abdul Ghani, said this week. “Regarding the agreement with the Region, we have reached the final stage and hopefully we will reach the final agreement on the exportation of crude oil within a maximum of two weeks,” he said, adding that all points have been agreed on… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Iraq-And-Kurdistan-Close-To-Deal-On-Oil-Exports.html |
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What New York’s Ban On Natural Gas Stoves And Heaters Means For The CountryOver the last few years, there has been a lot of talk about banning gas installations in new residential buildings, but New York is the first state to put this plan into action. The state has now passed a ban on gas stoves, furnaces, and propane heating in new buildings, in favor of environmentally-friendly appliances, such as heat pumps and induction stoves. This could be the first of many states to make the switch, with plenty of interest elsewhere in the country. The New York state law is set to come into effect in 2026 for new buildings under… Read more at: https://oilprice.com/Energy/Energy-General/What-New-Yorks-Ban-On-Natural-Gas-Stoves-And-Heaters-Means-For-The-Country.html |
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Most Of Venezuela’s Tankers Are Unfit To Ship OilThe majority of the oil tankers owned by Venezuela are in such decrepit condition that they lack certification by flag nations and are at risk of collisions, spills, fires, and sinking, an internal report by Venezuela’s state oil firm PDVSA, exclusively shared with Reuters, has shown. PDVSA has a total of 22 oil tankers. More than half of them are unfit to ship crude and should be either sent for repairs immediately or withdrawn from use, according to the report drafted by the maritime branch of PDVSA. The report says that the PDVSA fleet,… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Most-Of-Venezuelas-Tankers-Are-Unfit-To-Ship-Oil.html |
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Visualizing 200 Years Of Gold Mining Around The WorldAlthough the practice of gold mining has been around for thousands of years, it’s estimated that roughly 86% of all above-ground gold was extracted in the last 200 years. With modern mining techniques making large-scale production possible, global gold production has grown exponentially since the 1800s. In the infographic below, Visual Capitalist’s Govind Bhutada and Miranda Smith, using data from Our World in Data, visualizes global gold production by country from 1820 to 2022, showing how gold mining has evolved to become increasingly global… Read more at: https://oilprice.com/Metals/Gold/Visualizing-200-Years-Of-Gold-Mining-Around-The-World.html |
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Turkey Makes Huge 1-Billion-Barrel Oil DiscoveryTurkish Petroleum (TPAO) has made the largest crude oil discovery onshore Turkey with a find estimated to hold 1 billion barrels of crude, the Turkish company said. The discovery was made in the southeastern province of Sirnak, which borders the semi-autonomous Kurdistan Region in Iraq and Syria. Turkish Petroleum has drilled an exploration well and has encountered more than 162 meters of light oil-bearing reservoir with API gravity of 41. The well already produces around 10,000 barrels of oil per day, TPAO said. TPAO plans to drill back-to-back… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Turkey-Makes-Huge-1-Billion-Barrel-Oil-Discovery.html |
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Does The EU Still Need To Repress Natural Gas Demand?Back in late March, the EU Council reached an agreement to extend voluntary 15% gas demand reduction targets because “The EU is not completely out of the energy crisis and Russia continues to use energy as a weapon.” The new regulation covers the year to 31 March 2024 and sets a 15% demand reduction target relative to the 1 April 2017 to 31 March 2021 average. The council revealed that overall EU consumption of natural gas had dropped by 19.3% between August 2022 and January 2023, and noted that reducing the bloc’s gas demand… Read more at: https://oilprice.com/Energy/Energy-General/Does-The-EU-Still-Need-To-Repress-Natural-Gas-Demand.html |
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Saudi Arabia Cuts Price Of Oil To AsiaSaudi Arabia has cut the official selling price (OSP) for its Arab Light crude oil to Asia, sources said on Thursday. That makes the Arab Light grade price a premium of $2.55 per barrel compared to the Oman/Dubai average. The cut, to go into effect next month, represents a $0.25 per barrel cut month over month. Saudi Arabia’s June OSP for the United States $6.25 per barrel premium vs ASCI, with prices to NW Europe set at a $2.10 per barrel premium to ICE Brent. The move shows an expected weakness in Asian demand for Middle Eastern crude oil.… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Saudi-Arabia-Cuts-Price-Of-Oil-To-Asia.html |
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U.S. Oil Production On Track To Hit A Record High This YearOne of my 2023 energy predictions was “Total U.S. oil production will again rise, and set a new annual production record.” The previous annual record was set in 2019 at 12.3 million barrels per day (bpd), and by the end of 2022 monthly production was just about back to that level following the devasting Covid-19 impact on the industry in 2020. Of course, we don’t yet know if oil production will continue to creep higher, or whether falling prices will finally impact production. As I indicated when I made the prediction, I felt… Read more at: https://oilprice.com/Energy/Crude-Oil/US-Oil-Production-On-Track-To-Hit-A-Record-High-This-Year.html |
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Asian Oil Imports Dipped In April As China And India Slowed Crude BuyingThe biggest crude oil buyers in Asia, China, and India, imported lower volumes in April compared to multi-month highs in March, leaving overall Asian crude imports last month lower than in the prior month. Total shipments to Asia averaged 26.39 million barrels per day (bpd) in April, down from 27.6 million bpd in March, per data from Refinitiv Oil Research cited by Reuters columnist Clyde Russell on Thursday. China and India, Asia’s number-one and number-two crude importers, scaled back imports in April compared to March. China – which… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Asian-Oil-Imports-Dipped-In-April-As-China-And-India-Slowed-Crude-Buying.html |
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Huge Volumes Of Crude Oil Are Headed To ChinaAs many as 125 supertankers were traveling to China at the end of April, carrying the biggest volumes of oil to the world’s top crude buyer in more than two years, according to tanker-tracking data compiled by Bloomberg. Those supertankers have the total capacity to ship 250 million barrels of crude oil to China, as signs suggest that Chinese imports in May and June could be higher than an estimated monthly decline in April. Crude cargo loadings on tankers bound for China in April were high from the Far East ports in Russia, the U.S. Gulf… Read more at: https://oilprice.com/Energy/Energy-General/Huge-Volumes-Of-Crude-Oil-Are-Headed-To-China.html |
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Newmont Merger Would Create The World’s Biggest Gold MinerThe board of Australia’s Newcrest Mining has recommended the latest takeover offer of bigger sector player Newmont, which last month valued the target company at $19.5 billion. “The latest offer is one that the board would be prepared to recommend subject to successful due diligence during the period,” interim Newcrest chief executive Sherry Duhe said this week, as quoted by Bloomberg. “This transaction would strengthen our position as the world’s leading gold company by joining two of the sector’s top senior gold producers and setting the… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Newmont-Merger-Would-Create-The-Worlds-Biggest-Gold-Miner.html |
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China’s Economic Concerns Add To Oil Market UncertaintyChina’s factory activity dipped in April, the private Caixin purchasing managers’ index has confirmed. According to Caixin, factory activity fell to 49.5 from 50 in March, Bloomberg reported, meaning activity contracted for the first time since the start of the year. The data confirmed official figures released earlier this month, which pointed to a sharper monthly contraction in manufacturing activity: to 49.2 from 51.9 in March, Reuters reported. The official data served a blow because it was very different from what analysts had expected, which… Read more at: https://oilprice.com/Energy/Energy-General/Chinas-Economic-Concerns-Add-To-Oil-Market-Uncertainty.html |
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Senate Serves Blow To U.S. Solar Industry With Tariff ReinstatementThe Senate voted this week to reinstate solar panel tariffs of up to 254% in a blow to the Biden administration, its energy transition plans, and the U.S. solar industry. With 56 votes in favor and 41 against, the tariff return bill will now head to President Biden, who has vowed to veto it. Senate Republicans are preparing for a continued fight. To win it, they would need a majority of two-thirds in the upper chamber. The solar tariff saga dates back to February last year after Auxin Solar, a California-based solar-panel manufacturer, requested… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Senate-Serves-Blow-To-US-Solar-Industry-With-Tariff-Reinstatement.html |
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Regional bank stocks continue to slide on Thursday with PacWest leading the way down 54%Thursday’s moves come less than a week after First Republic was seized by regulators and sold at a discount to JPMorgan Chase. Read more at: https://www.cnbc.com/2023/05/04/regional-banks-fall-pacwest-down-40percent.html |
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Stocks close lower for a fourth day on renewed bank worries, Dow goes negative for 2023: Live updatesRegional banks led the broader market lower as contagion fears resurfaced. Read more at: https://www.cnbc.com/2023/05/03/stock-market-today-live-updates.html |
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Apple set to report quarterly earnings after the bellApple’s second-quarter results come after the company prepared investors in January for a down quarter. Read more at: https://www.cnbc.com/2023/05/04/apple-aapl-earnings-report-q2-2023.html |
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Berkshire Hathaway is outperforming during turmoil, but Warren Buffett’s favorite child Geico is in troubleGeico, the crown jewel of Berkshire’s insurance empire, has found itself in trouble recently after losing market share to its best competitor Progressive. Read more at: https://www.cnbc.com/2023/05/04/berkshire-hathaway-is-outperforming-in-turmoil-but-geico-is-in-trouble.html |
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There are limited options to fix the banking crisis, but one is gaining supportBillionaire hedge fund manager Bill Ackman made an impassioned plea for a depositor backstop in a tweet Wednesday. Read more at: https://www.cnbc.com/2023/05/04/there-are-limited-options-to-fix-the-banking-crisis-but-one-is-gaining-support.html |
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Crypto has ‘lost its shine’ for institutional investors, says Northern Trust executiveInstitutions lost interest in crypto after 2022 and their appetite for it hasn’t come back yet, according to Northern Trust’s Justin Chapman. Read more at: https://www.cnbc.com/2023/05/04/crypto-has-lost-its-shine-for-institutional-investors-says-northern-trust-executive.html |
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J&J’s consumer-health spinoff Kenvue jumps 20% in public market debutKenvue’s debut is the biggest U.S. IPO since EV maker Rivian went public in 2021. Read more at: https://www.cnbc.com/2023/05/04/jj-kenvue-ipo-kvue-starts-trading-on-nyse.html |
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AMD jumps 9% on report Microsoft is collaborating on A.I. chip pushUnlike top U.S. cloud competitors Amazon and Google, Microsoft hasn’t launched a chip that developers can use to train artificial intelligence models. Read more at: https://www.cnbc.com/2023/05/04/amd-jumps-8percent-on-report-microsoft-is-collaborating-on-ai-chip-push.html |
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Ukraine war live updates: U.S. diplomat visits Paul Whelan, White House denies link to Kremlin drone attackRussia has been accused of staging an alleged drone attack on the Kremlin that it blamed on Ukraine and the U.S. Read more at: https://www.cnbc.com/2023/05/04/ukraine-war-live-updates-latest-news-on-russia-and-the-war-in-ukraine.html |
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Macy’s opens more strip mall stores as expansion strategy faces pivotal testMacy’s push into smaller and off-mall stores is its answer to investors who see department stores as dull and irrelevant. Read more at: https://www.cnbc.com/2023/05/04/macys-expands-market-by-macys-bloomies-off-mall-stores.html |
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Ed Sheeran didn’t steal from Marvin Gaye’s ‘Let’s Get It On,’ jury rulesPop star Ed Sheeran didn’t commit copyright infringement with his 2014 hit “Thinking Out Loud,” a jury decided. Read more at: https://www.cnbc.com/2023/05/04/ed-sheeran-didnt-steal-from-marvin-gaye-song-jury-rules.html |
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Westinghouse announces a new small nuclear reactor — a notable step in the industry’s efforts to remake itselfWestinghouse announced on Thursday it is launching a small nuclear reactor, a miniature version of its flagship AP1000. Read more at: https://www.cnbc.com/2023/05/04/westinghouse-announces-a-small-nuclear-reactor.html |
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Bitcoin rises, and ex-OpenSea manager found guilty in NFT insider trading case: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Ryan Rugg, the head of digital assets for Citibank’s TTS business, discusses blockchain technology and tokenization from Digital Assets Week in San Fransisco. Read more at: https://www.cnbc.com/video/2023/05/04/bitcoin-rises-ex-opensea-manager-found-guilty-nft-insider-trading-cnbc-crypto-world.html |
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Asian Oil Imports Dipped In April As China And India Slowed Crude BuyingBy Tsvetana Paraskova of OilPrice.com
The biggest crude oil buyers in Asia, China, and India, imported lower volumes in April compared to multi-month highs in March, leaving overall Asian crude imports last month lower than in the prior month. Total shipments to Asia averaged 26.39 million barrels per day (bpd) in April, down from 27.6 million bpd in March, per data from Refinitiv Oil Research cited by Reuters columnist Clyde Russell on Thursday. China and India, Asia’s number-one and number-two crude importers, scaled back imports in April compared to March. China – which had imported the highest crude volumes Read more at: https://www.zerohedge.com/markets/asian-oil-imports-dipped-april-china-and-india-slowed-crude-buying |
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Top Officials Who Pushed Aggressive COVID-19 Policies Try To Rewrite HistoryAuthored by Petr Svab via The Epoch Times (emphasis ours),
Former Director of the National Institute of Allergy and Infectious Diseases (NIAID) Dr. Anthony Fauci listens to President Joe Biden (out of frame) speak during a visit to the National Institutes of Health (NIH) in Bethesda, Md., on Feb. 11, 2021. (Saul Loeb/AFP via Getty Images)Some of the people most strongly associated with promoting lockdown measures during the COVID-19 pandemic have recently sought to recast their positions. Examples include Anthony Fauci, former leader of the federal COVID-19 response, teachers’ union head Randi Weingarten, and Canadian Prime Minister Justin Trudeau. Fauci seemed eager to shirk responsibility for the lockdowns … Read more at: https://www.zerohedge.com/political/top-officials-who-pushed-aggressive-covid-19-policies-try-rewrite-history |
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Microsoft Teams Up With AMD To Dethrone Nvidia From AI Chip ThroneOne of the best performing stocks of 2023, Nvidia, swooned moments after Bloomberg reported that Microsoft is working with AMD on the chipmaker’s expansion into artificial intelligence processors, part of a multi-faceted strategy to secure more of the highly coveted components and prevent Nvidia from becoming the sole supplier of chips to the industry. The companies are teaming up to offer an alternative to Nvidia which dominates the market for AI-capable chips called graphics processing units. And since MSFT does not (yet) engage in fabrication, the software giant will provide financial support to bolster AMD’s efforts, and is also working with the chipmaker on a homegrown Microsoft processor for AI workloads, code-named Athena. AMD shares jumped more than 6.5% on Thursday, and Microsoft gained about 1%. Representatives from both companies declined to comment. Nvidia stock declined as much as 1.9% before erasing much of the losses
The alliance is part of a broader push to augment AI processing power, whi … Read more at: https://www.zerohedge.com/technology/microsoft-teams-amd-dethrone-nvidia-ai-chip-throne |
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Trump Dominates GOP Field In Early Endorsements—Leads DeSantis By 72–5
Authored by Janice Hisle via The Epoch Times (emphasis ours),
(L-R) Florida Gov. Ron DeSantis and Former President Donald Trump. (Giorgio Viera/Angela Weiss/Getty Images)Former President Donald Trump has galloped to an early lead in the endorsement sweepstakes—bigly, as he might say. Some fans of Florida Gov. Ron DeSantis worry that he hurt his chances because he had not yet declared his candidacy as of May 3. Many believe DeSantis would have entered the race sooner if not for Florida’s Read more at: https://www.zerohedge.com/political/trump-dominates-gop-field-early-endorsements-leads-desantis-72-5 |
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More train strikes likely after RMT votes for further actionRMT members back fresh rail strikes, meaning industrial action could continue until November Read more at: https://www.bbc.co.uk/news/business-65488640?at_medium=RSS&at_campaign=KARANGA |
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US bank seeks buyer as confidence crisis spreadsPacWest is the latest mid-sized bank to search for financial help as confidence in the sector falls. Read more at: https://www.bbc.co.uk/news/business-65480000?at_medium=RSS&at_campaign=KARANGA |
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Sausage maker Heck cuts vegan range as appetite dropsHeck says the public’s appetite for meat-free sausages and burgers is “not really there yet”. Read more at: https://www.bbc.co.uk/news/business-65481714?at_medium=RSS&at_campaign=KARANGA |
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Tech View: Nifty forms a long bull candle. What should traders do on Friday“Nifty is now placed to witness a sharp upside breakout of the crucial resistance zone of around 18,200-18,300 levels. Hence a decisive move above this area could open the next upside targets of around 18,600-18,700 levels in the near term. Immediate support is placed at 18,150-18,100 levels, he said. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty-forms-a-long-bull-candle-what-should-traders-do-on-friday/articleshow/99991154.cms |
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Looking for schemes with highest risk-adjusted returns? Check out these top 5 optionsWhen choosing schemes, investors should be mindful of the associated risks, while looking at their percentage returns. A risk-adjusted return calculates likely profit in an investment, considering possible risks. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/looking-for-schemes-with-highest-risk-adjusted-returns-check-out-these-top-5-options/articleshow/99991594.cms |
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Asian Paints, MRF among 10 stocks that may gain from cheaper crude oilAs the crude oil prices are declining, paints, rubber, plastic and chemicals stocks will be benefited from this. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/asian-paints-mrf-among-10-stocks-that-may-gain-from-cheaper-crude-oil/articleshow/99980495.cms |
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The Tell: Will stocks rally if the Fed pauses interest-rate hikes? Here’s what the data says.History shows that a pause in the rate-hike cycle doesn’t guarantee a stock-market rally, according to Wall Street veteran David Rosenberg. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-71E2-CA8EAE564091%7D&siteid=rss&rss=1 |
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In One Chart: Fed ‘policy mistake’? Why a tumbling 2-year Treasury yield is spooking investorsA fall in the 2-year Treasury yield following Wednesday’s rate hike signals the Federal Reserve may have made a big policy mistake, says a top Wall Street analyst. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-71EB-45A275D4206C%7D&siteid=rss&rss=1 |
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Anheuser-Busch InBev CEO says beer shouldn’t be focus of debate as Bud Light sales deteriorateAnheuser-Busch InBev’s chief executive on Thursday tried to minimize the controversy over Bud Light as the company reiterated its financial guidance for the year. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-71EA-D5846204316A%7D&siteid=rss&rss=1 |
