Wall Street opened mixed this morning as Omicron investor fears linger; ‘Santa Claus rally’ may not happen. But, unfortunately, history says that if Santa Claus doesn’t come to Wall Street in December, the Grinch will visit the stock market in January and raise hell.
The market opened mostly flat but rebounded for a second day from omicron’s sell-off and gained upward throughout the trading session by improving consumer confidence and gross domestic product growth.
U.S. oil prices made gains on Wednesday after investors cheered positive economic data. WTI settled at 72.89, gold higher 1804, but stopped at its resistance. In addition, the White House said it was resuming talks on a major social spending bill with a senator crucial to passing the legislation. Crude oil prices recovered on Wednesday morning despite word from the Energy Information Administration of an inventory draw of 4.7 million barrels for the week to December 17.
According to the International Energy Agency (IEA), coal production may hit an all-time high despite curbing production across several countries and aims for decarbonization following COP26.
Another day, another buying-panic at the cash open in U.S. equities. Nevertheless, the DOW managed to ‘get back to even’ on the week, and Nasdaq and Small Caps led the week up over 2%. Tesla Inc. is once again worth $1 trillion after Chief Executive Elon Musk said he had completed selling shares.
The Market in Perspective
| Here are the headlines moving the markets. | |
 |
Airline Executives Plead With Governments To Ease RestrictionsNowadays, the travel industry never seems to catch a proper break. After enduring extended downtime last year and early this year due to global lockdowns associated with the Covid-19, airlines have been grappling with high fuel prices this year after jet fuel prices jumped nearly 60% Y/Y to $87.40/bbl. Many airlines have been chasing customers with fare sales, but rising fuel costs is likely to soon change that. Last month, Delta (NYSE:DAL) said that higher jet fuel prices would weigh on its bottom line while Frontier Airlines has forecast a fourth Read more at: https://oilprice.com/Energy/Energy-General/Airline-Executives-Plead-With-Governments-To-Ease-Restrictions.html |
|
Coal On Track To Break Records Despite Efforts To Curb ProductionCoal production is set to hit an all-time high according to the International Energy Agency (IEA) despite the curbing of production across several countries and aims for decarbonization following COP26. Coal demand has continued to increase through 2021 mainly due to the needs of large Asian countries that still rely on the fossil fuel, as well as gas shortages forcing European states to shift back to coal. Coal has experienced a dramatic rebound this year, with production levels set to hit an all-time high in 2021 and demand levels Read more at: https://oilprice.com/Energy/Energy-General/Coal-On-Track-To-Break-Records-Despite-Efforts-To-Curb-Production.html |
|
India To Consider Stopping New Coal Plants ConstructionIndia is reviewing a proposal to stop new coal-fired capacity construction under a plan to meet its climate pledges, Indian outlet The Economic Times reported on Wednesday, quoting sources familiar with the matter. As part of its pledges during the COP26 climate summit last month, Indiawhere coal currently accounts for around 70 percent of electricity generationcommitted to net-zero emissions by 2070, and 500 gigawatts (GW) of installed renewable energy capacity by 2030. In late October, an expert committee appointed by the power Read more at: https://oilprice.com/Latest-Energy-News/World-News/India-To-Consider-Stopping-New-Coal-Plants-Construction.html |
|
Oil Prices Jumps On Large Crude Draw As Markets Ignore Gasoline BuildCrude oil prices recovered on Wednesday morning despite word from the Energy Information Administration of an inventory draw of 4.7 million barrels for the week to December 17. At 423.6 million barrels, crude oil inventories remain 8% below the five-year averagecompared to 7% below the five-year average last week. Last weeks draw adds to last weeks huge draw of 4.6 million barrels from crude oil inventories. On Tuesday, the American Petroleum Instituteestimateda crude oil inventory draw of 3.670 million barrels Read more at: https://oilprice.com/Energy/Crude-Oil/Oil-Prices-Jumps-On-Large-Crude-Draw-As-Markets-Ignore-Gasoline-Build.html |
|
Libyas Election Chaos Threatens Oil Production And ExportsLibyas oil production and exports are threatened again as the presidential election slated for December 24 will likely be postponed. Armed groups descended in the capital Tripoli on Tuesday amid the election chaos, while the largest oilfield in the country was shut down by militias earlier this week. Two days before the election scheduled for Friday, December 24, no final list of candidates has been published, and few believe the vote will go ahead. The head of the election commission in Libya closed the election committees on Tuesday, which Read more at: https://oilprice.com/Latest-Energy-News/World-News/Libyas-Election-Chaos-Threatens-Oil-Production-And-Exports.html |
|
U.S. Crude Oil Production Saw The Biggest Drop On Record In 2020Slashed drilling activity and low oil prices led to the largest decline in annual average crude oil production in the United States in 2020, when output slumped by 8 percent from a record high in 2019, the Energy Information Administration (EIA) said on Wednesday. U.S. crude oil production averaged 11.3 million barrels per day (bpd) last year, the EIA has estimated. This was down by 935,000 bpd, or by 8 percent, compared to the record annual average of 12.2 million bpd in 2019. Last years flop in U.S. oil production was the largest annual Read more at: https://oilprice.com/Energy/Energy-General/US-Crude-Oil-Production-Saw-The-Biggest-Drop-On-Record-In-2020.html |
|
‘Spider-Man: No Way Home’ is on pace to be the first and only billion-dollar movie of 2021“Spider-Man: No Way Home” could become the first and only film released in 2021 to surpass $1 billion at the global box office. Read more at: https://www.cnbc.com/2021/12/22/spider-man-no-way-home-could-be-the-first-billion-dollar-movie-of-2021.html |
|
Elon Musk: ‘My wealth isn’t some deep mystery. My taxes are super simple’When asked if H&R Block could do his taxes, Musk said, “H&R Block could easily do my taxes. I don’t need H&R Block, I could do it.” Read more at: https://www.cnbc.com/2021/12/22/elon-musk-says-his-wealth-isnt-a-deep-mystery-his-taxes-are-simple.html |
|
Here’s where the NBA’s business stands as it enters a critical phase of its season on ChristmasThe NBA is approaching a critical stretch of its calendar year with annual Christmas Day games, but outbreaks have put its plans in jeopardy. Read more at: https://www.cnbc.com/2021/12/22/nba-enters-critical-phase-of-season-on-christmas.html |
|
Stocks making the biggest moves midday: Tesla, CarMax, BlackBerry and moreThese are the stocks posting the largest moves in midday trading. Read more at: https://www.cnbc.com/2021/12/22/stocks-making-the-biggest-moves-midday-tesla-carmax-blackberry-more.html |
|
FDA authorizes Pfizer’s Covid treatment pill, the first oral antiviral drug cleared during the pandemicThe FDA granted emergency authorization to Pfizer’s Covid treatment pill, a major milestone that promises to revolutionize the fight against the virus. Read more at: https://www.cnbc.com/2021/12/22/fda-authorizes-pfizers-covid-treatment-pill-the-first-oral-antiviral-drug-cleared-during-the-pandemic.html |
|
House committee launches probe into deadly Astroworld festivalThe House Oversight Committee launched a bipartisan investigation into the events that led to 10 deaths at the Astroworld festival. Read more at: https://www.cnbc.com/2021/12/22/house-committee-launches-probe-into-deadly-travis-scott-astroworld-festival.html |
|
WHO says vaccine booster programs will prolong Covid crisis: ‘No country can boost its way out of the pandemic’World Health Organization officials warn vaccine inequality could lead to the emergence of more mutant Covid variants. Read more at: https://www.cnbc.com/2021/12/22/who-says-covid-vaccine-booster-programs-will-prolong-pandemic.html |
|
Danny Meyer’s Union Square Hospitality Group to require boosters for workers, dinersUnion Square Hospitality Group will soon require customers to show proof of having received a Covid booster shot in order to dine indoors or drink at its bars. Read more at: https://www.cnbc.com/2021/12/22/danny-meyers-ushg-to-require-boosters-for-workers-diners.html |
|
New York City weighs fresh restrictions for Times Square New Year’s Eve celebrationNew York City Mayor Bill de Blasio said he will announce any changes to the New Year’s Eve celebration in Times Square by Christmas. Read more at: https://www.cnbc.com/2021/12/22/nyc-weighs-new-restrictions-for-times-square-new-years-eve-celebration.html |
|
Some glimmers of hope are emerging on omicron, but experts stress cautionMedical experts agree that even if symptoms are milder, the sheer volume and spread of omicron infections still poses a threat to health care systems. Read more at: https://www.cnbc.com/2021/12/22/some-glimmers-of-hope-are-emerging-on-omicron-but-experts-stress-caution.html |
|
CES still on, Davos postponed: Conventions industry rebound in doubt amid omicronThe $100 billion conferences and events industry in the U.S. is on edge amid the recent Covid surge. Read more at: https://www.cnbc.com/2021/12/22/ces-still-on-davos-postponed-conventions-industry-on-edge-amid-omicron.html |
|
Travelers scramble for Covid tests ahead of holiday rushU.S. air traveler volumes are expected to be the highest since the Covid pandemic began. Read more at: https://www.cnbc.com/2021/12/22/travelers-scramble-for-covid-tests-ahead-of-holiday-rush.html |
|
Dow, S&P Erase All ‘Omicron’ Losses; Dollar Dumps, Gold JumpsDow, S&P Erase All ‘Omicron’ Losses; Dollar Dumps, Gold JumpsAnother day, another buying-panic at the cash open in US equities. The Dow manged to ‘get back to even’ on the week and Nasdaq and Small Caps lead the week up over 2%…
The Dow and S&P are almost back to unchanged from the Omicron ledge…
Which makes sense as Omicron is already over in South Africa… Read more at: https://www.zerohedge.com/markets/stocks-oil-gold-jump-dollar-dumps |
|
Escape From LA: More Container Business Flees To East CoastEscape From LA: More Container Business Flees To East CoastBy Greg Miller of FreightWaves, If so many container ships are stuck in the Pacific Ocean, waiting for weeks for a berth in Los Angeles or Long Beach, why not reschedule calls to another port? Why not make like Kurt Russell as Snake Plissken in the circa-1996 film and “Escape from LA”?
In the ongoing battle for Asian imports between the West Coast and East Coast, the momentum is once again swinging back to the east. “November was the sixt … Read more at: https://www.zerohedge.com/economics/escape-la-more-container-business-flees-east-coast |
|
New Data Show Omicron Hospital Risk Significantly Lower Than Delta, FDA Approves Pfizer COVID PillNew Data Show Omicron Hospital Risk Significantly Lower Than Delta, FDA Approves Pfizer COVID PillJust before the FDA announced that it had officially approved Pfizer’s COVID pill for to patients age 12 and older (though the drug will likely only be used in more high-risk patients), new data arrived from both South Africa and Scotland showing the hospitalization risk from omicron is significantly lower than from delta. Preliminary data from a Scotland study suggested the the newer variant is 2/3rds as likely to send somebody to the hospital. They did, however, warn that the variant could cause other issues due to its heightened infectiousness.
The Scotland study drew on the health records of 5.4M people in Scotland. A separate study published online by researchers at South Africa’s National Institute for Communicable Diseases – who have been releasing breadcrumb trails of data about omicron since first confirming its existence with the WHO. Similarly found people infected with Omicron were 70% to 80% less likely to need hospital treatment than people infected with earlier variants, including Delta. One thing that … Read more at: https://www.zerohedge.com/covid-19/new-data-show-omicron-hospital-risk-significantly-lower-delta-fda-approves-pfizer-covid |
|
Chalk & Cheese; Apples & Oranges; Omicron & DeltaChalk & Cheese; Apples & Oranges; Omicron & DeltaAuthored by Peter Tchir via AcademySecurities.com, Chalk & Cheese, Apples & Oranges, Omicron & DeltaWhen Brits compare two things that aren’t really the same, the rejoinder is “chalk and cheese.” When Americans compare two things that aren’t really the same, the retort is “apples and oranges.” It really is a disservice to compare two different things in an attempt to reach a conclusion. Yet, we are at the stage of the pandemic when we are treating Coronavirus, Delta, and Omicron as all “just” Covid.
I think this is leading to some very incorrect conclusions and it is time to get better (a lot better) at how we look at the data. Phase 1 – Coronavirus – Late 2019 until Late 2020This was the initial phase. It started in China, spread to Italy and then to the U.S. and ravaged people. … Read more at: https://www.zerohedge.com/markets/chalk-cheese-apples-oranges-omicron-delta |
|
Brewdog: Bosses say management issues are in the pastThe craft brewer’s chairman says its management issues are in the past, following claims of a toxic culture. Read more at: https://www.bbc.co.uk/news/business-59758169?at_medium=RSS&at_campaign=KARANGA |
|
Isolation rule change will mean fewer rail cancellations, says industryShorter Covid self-isolation in England should mean fewer cancelled trains, says the Rail Delivery Group. Read more at: https://www.bbc.co.uk/news/business-59753099?at_medium=RSS&at_campaign=KARANGA |
|
Sri Lanka plans to pay off Iran oil debt with teaThe country says it hopes to send Iran $5m worth of tea each month to clear its debt. Read more at: https://www.bbc.co.uk/news/business-59753873?at_medium=RSS&at_campaign=KARANGA |
|
Bottom-up approach key requisite to make money from stock market in 2022With the kind of returns seen from the markets in the recent past, it would be pertinent to tone down return expectations in the near to medium term. From a top-down market, a bottom-up approach would be the key requisite and right stock/asset selection and allocation would be a critical differentiator. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/bottom-up-approach-key-requisite-to-make-money-from-stock-market-in-2022/articleshow/88438211.cms |
|
Zee-Sony merger fails to excite investors but analysts are jubilant“The investments in content creation would increase as there is increased concentration on both the platforms (Sony Liv and ZEE5) and with the infusion of additional capital in excess of $1 billion, they could compete aggressively with Amazon and Netflix,” Vivek Menon of NV Capital said. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/zee-sony-merger-fails-to-excite-investors-but-analysts-are-jubilant/articleshow/88435188.cms |
|
A realty stock ignored during IPO is up 170% nowMacrotech Developers’ IPO, open from April 7 to April 9, was subscribed 1.36 times, with the retail quota getting undersubscribed 40 per cent. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/a-realty-stock-ignored-during-ipo-is-up-170-now/articleshow/88428190.cms |
|
: Tesla returns to the $1 trillion club after Musk says stock sales are doneTesla Inc. is once again worth $1 trillion, after Chief Executive Elon Musk said he is done selling shares. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7813-165CBCFE8107%7D&siteid=rss&rss=1 |
|
Bond Report: Ten-year Treasury yield has biggest drop in almost a week as omicron variant remains front and centerThe 10-year Treasury yield has its biggest drop in almost a week on Wednesday, despite data showing U.S. consumer confidence improved this month, as markets continued to focus on the economic impact of the omicron variant of the coronavirus. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-780F-A067B65AF474%7D&siteid=rss&rss=1 |
|
The Wall Street Journal: TikTok topped Google as the most visited website in 2021TikTok really was everywhere this year. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7813-24D3CFCA7D72%7D&siteid=rss&rss=1 |
Liner networks use Panama Canal route to Atlantic to get around LA/LB congestion (Photo: ACP)It’s not that simple, given how much warehousing and transloading capacity is built around the Southern California gateway — and congestion is affecting every port in America. Even so, shippers and carriers are indeed moving to sidestep Los Angeles/Long Beach.
