Summary Of the Markets Today:
- The Dow closed down 336 points or 1.01%,
- Nasdaq closed down 0.18%,
- S&P 500 closed down 0.64%,
- Gold $1,994 down $28.90,
- WTI crude oil settled at $71 down $0.51,
- 10-year U.S. Treasury 3.538% up 0.003 points,
- USD Index $102.61 up $0.17,
- Bitcoin $26,916 down $465,
Click here to read our Economic Forecast for May 2023
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
The advance estimates of U.S. retail and food services sales for April 2023 were $686.1 billion, up 0.4% from the previous month, and up 1.6% above April 2022 (down 3.3% year-over-year inflation adjusted). Here are some of the key findings from the report:
- Sales of nonstore retailers, which includes online retailers, were up 8.0 percent (±1.2 percent) from last year.
- Sales of food services and drinking places were up 9.4 percent (±2.5 percent) from April 2022.
- Sales of general merchandise stores were up 4.3 percent (±0.5 percent) from last year.
- Sales of motor vehicle and parts dealers were down 1.2 percent (±0.5 percent) from last year.
- Sales of building materials and garden supplies dealers were down 3.7 percent (±0.5 percent) from last year.
Overall, the advance estimates of U.S. retail and food services sales for April 2023 were weak as inflation erodes the headline numbers.
The Federal Reserve’s Industrial Production for April 2023 came in at 103.0, up 0.5% from March 2023 and 0.2% from April 2022. The contributions of the major industry groups:
- Manufacturing: Down 0.9% from April 2022.
- Mining: Up 5.6% from April 2022.
- Utilities: Down 0.4% from April 2022.
Overall, the Federal Reserve’s Industrial Production for April 2023 shows significant weakness with little growth.
A summary of headlines we are reading today:
- Copper Prices Slide Despite Expected Deficit
- Bullish Messaging Bolsters Oil Prices
- WTO Chief: Nigeria Can’t Rely On Oil & Gas Revenues
- Record Chinese Oil Demand Prompts IEA To Lift Global Growth Forecast
- Big Oil Could Face $12 Billion Bill To Clean Up Nigerian Spills
- Why Home Depot’s weak outlook could be a warning sign for Target earnings
- Here’s what happened during OpenAI CEO Sam Altman’s first hearing on artificial intelligence
- Black Sea grain deal that reopened key Ukraine ports set to expire this week as Kremlin mulls a potential extension
- Key Words: Comcast is ‘more likely than not’ to sell Hulu stake to Disney next year, CEO says
- Market Snapshot: Dow falls, Nasdaq edges up with U.S. debt-ceiling talks in focus
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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Refinery Utilization Plans Tell Story Of Strong Oil Products Demand in U.S.U.S. crude oil refineries are planning to run at a rate of 94% utilization this quarter, according to company forecasts and analysts, Reuters said on Tuesday. U.S. total refining capacity is estimated at 17.9 million barrels per day. U.S. refiners have been running at 91% of their operable capacity for the week ending May 5, according to the latest EIA data presented in its Weekly Petroleum Status Report published on Wednesday mornings. Gasoline production was on the rise, averaging 9.8 million barrels per day for the week, while distillate production… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Refinery-Utilization-Plans-Tell-Story-Of-Strong-Oil-Products-Demand-in-US.html |
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Copper Prices Slide Despite Expected DeficitBy Nichole Bastin via AGMetalminer.com Copper prices continued to slide this past month, although not enough to trigger a downward trend. As lower lows have yet to form, price direction remains uncertain. Copper prices will likely stay within range until a breakout or breakdown in price occurs. Such an event will likely help drive prices in a more established market direction. Overall, the Copper Monthly Metals Index (MMI) fell 4.43% from April to May. China’s Slow Recovery Dragging on Copper Prices A long-term projected… Read more at: https://oilprice.com/Metals/Commodities/Copper-Prices-Slide-Despite-Expected-Deficit.html |
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QatarEnergy Awards $10B Contract For North Field South ProjectQatarEnergy awarded a $10 billion contract to France’s Technip Energies and Consolidated Contractors Company, the company said on Tuesday. QatarEnergy said on Tuesday that the $10 billion project, awarded to Technip and Middle-Eastern-based CCC, is for engineering, procurement, and construction of its North Field South (NFS) project—home to the world’s largest natural gas reserves. The project covers two LNG trains with 16 million tonnes per year of combined capacity. The capacity should increase Qatar’s total production… Read more at: https://oilprice.com/Latest-Energy-News/World-News/QatarEnergy-Awards-10B-Contract-For-North-Field-South-Project.html |
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Why The Revival Of Nuclear Energy Is Good News For RussiaIt seems increasingly likely that we are witnessing the dawn of a new nuclear era. After decades of decline in the West, a potent mix of climate goals and politically motivated energy wars have changed public and private opinion regarding the controversial energy source. Nuclear has notorious drawbacks, but it’s also a proven form of carbon-free energy production, with plenty of existing infrastructure. It also doesn’t entail any of the issues with variability that are associated with wind and solar power. Many advocates of nuclear… Read more at: https://oilprice.com/Energy/Energy-General/Why-The-Revival-Of-Nuclear-Energy-Is-Good-News-For-Russia.html |
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Electricity Prices Plunge By 75% As Finland Opens New Nuclear Power PlantThe commencement of regular output from a much-delayed Finnish nuclear reactor in April saw electricity prices in the country decrease by more than 75 percent. The Olkiluoto 3 (OL3) nuclear plant completed the transition from testing to regular output last month to become Finland’s first new nuclear plant in more than four decades. It is expected to produce up to 15 percent of the country’s power demand. And while the plant’s production is still in its early days, its launch has had a considerable effect on Finland’s energy… Read more at: https://oilprice.com/Alternative-Energy/Nuclear-Power/Electricity-Prices-Plunge-By-75-As-Finland-Opens-New-Nuclear-Power-Plant.html |
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Equinor Reopens Gas Field In A Boost For Exports To EuropeNorway’s energy major Equinor this week officially reopened the Njord gas field in the Norwegian Sea, aiming to more than double the field’s production and raise Norwegian gas exports to Europe. The Njord field, which started production in 1997, was originally planned to produce until 2013. But systematic work with increased recovery means that there are still large volumes of oil and gas left. New discoveries in the area can also be produced and exported via Njord, Equinor said in a statement. In 2016, the platform and the floating… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Equinor-Reopens-Gas-Field-In-A-Boost-For-Exports-To-Europe.html |
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Bullish Messaging Bolsters Oil PricesBullish messaging from the IEA and the unexpected launch of U.S. SPR repurchases have bolstered oil prices today, limiting the downside ahead of the next OPEC+ meeting.Investor Alert: Whether you are new to the oil and gas industry or an energy market veteran, Global Energy Alert is an absolute must-read. Oilprice.com’s premium newsletter provides everything from geopolitical analysis to trading analysis, all for less than a cup of coffee per week.Chart of the Week- The anticipated plunge in natural gas drilling is starting to take shape as… Read more at: https://oilprice.com/Energy/Energy-General/Bullish-Messaging-Bolsters-Oil-Prices.html |
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Saudi Aramco Considers Another Stock Offering In RiyadhSaudi oil giant Aramco is studying the feasibility of an additional stock offering in Riyadh, which could help the world’s biggest oil firm raise billions of U.S. dollars, Bloomberg reported on Tuesday, citing sources familiar with the plans. Aramco, which is also the world’s number-two company by market capitalization – second only to Apple – has been considering with several advisors the possibility of selling more stock on the market, according to Bloomberg’s sources. Neither the timing nor the size of a potential… Read more at: https://oilprice.com/Energy/Energy-General/Saudi-Aramco-Considers-Another-Stock-Offering-In-Riyadh.html |
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WTO Chief: Nigeria Can’t Rely On Oil & Gas RevenuesAfrican OPEC producer Nigeria will have to prepare to diversify its budget revenues as oil and gas will not be its main source of revenues for much longer, according to Ngozi Okonjo Iweala, a Nigerian economist serving as Director General of the World Trade Organization (WTO). “We need to start preparing now for a time when our oil and gas will no longer serve us as the main sources of revenue,” Iweala said at the Nigerian Governors’ Forum in Abuja this week, as carried by local media. Nigeria has depended on the oil and gas sector… Read more at: https://oilprice.com/Latest-Energy-News/World-News/WTO-Chief-Nigeria-Cant-Rely-On-Oil-Gas-Revenues.html |
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The IEA Says Russia Isn’t Cutting Oil Production As PromisedRussia has failed so far to cut its oil production by 500,000 barrels per day (bpd) as promised, and it may even be looking to boost output to compensate for lost revenues, the International Energy Agency (IEA) said on Tuesday. Russian crude oil and oil product exports continue to prove resilient, with exports hitting in April the highest level since the invasion of Ukraine, at 8.3 million bpd, the IEA said in its closely-watched Oil Market Report. The record exports contrast with expectations that Russia would lower supply to the market now that… Read more at: https://oilprice.com/Energy/Energy-General/The-IEA-Says-Russia-Isnt-Cutting-Oil-Production-As-Promised.html |
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Record Chinese Oil Demand Prompts IEA To Lift Global Growth ForecastThe world’s oil demand is set to rise by 2.2 million barrels per day (bpd) this year to a record 102 million bpd, the International Energy Agency (IEA) said on Tuesday, revising up its forecast by 200,000 bpd as China’s demand hit a record. The Chinese recovery continues to exceed expectations, the agency said in its Oil Market Report today, noting that China set an all-time record for its oil consumption in March 2023 at 16 million bpd. In last month’s report, the IEA also expected the world to see record demand for oil… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Record-Chinese-Oil-Demand-Prompts-IEA-To-Lift-Global-Growth-Forecast.html |
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IEA: Oil Bears Are Disregarding An Imminent Supply ShortageThe decline in oil prices over the past few weeks contrasts with an expected tightening of the market later this year when demand exceeds supply by nearly 2 million barrels per day (bpd), the International Energy Agency (IEA) said on Tuesday. Since the middle of April, oil prices have lost all the gains from OPEC+’s latest announcement of new production cuts. Early on Tuesday, WTI Crude traded at around $71 per barrel, down from more than $80 a barrel in the days following OPEC+’s surprise news of more than 1 million bpd cuts between… Read more at: https://oilprice.com/Energy/Energy-General/IEA-Oil-Bears-Are-Disregarding-An-Imminent-Supply-Shortage.html |
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Big Oil Could Face $12 Billion Bill To Clean Up Nigerian SpillsThe clean-up of oil spills in Nigeria’s oil-producing Niger Delta could cost around $12 billion, and oil majors including Shell and Eni should be held responsible for most of the environmental pollution, a new report by a local commission showed on Tuesday. The report by the Bayelsa State Oil & Environmental Commission said that decades of oil production has left the state of Bayelsa “in the grip of a human and environmental catastrophe of unimaginable proportions,” as carried by Bloomberg. “The report finds failures… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Big-Oil-Could-Face-12-Billion-Bill-To-Clean-Up-Nigerian-Spills.html |
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Australian Gas Giant Wants To Import Carbon Dioxide From AsiaSantos, an Australian energy major with a focus on gas, wants to import carbon dioxide from Asia and store it in local reservoirs. The idea may have sounded somewhat eccentric a few years ago but it seems that carbon capture and storage is gaining traction thanks to government support for such projects. The support comes despite the scarcity of such projects in operation, with Bloomberg reporting there were only 30 carbon capture and storage projects across the world last year. Santos, however, has ambitious plans: it wants to collect carbon dioxide… Read more at: https://oilprice.com/Latest-Energy-News/World-News/An-Australian-Gas-Giant-Wants-To-Import-Carbon-Dioxide-From-Asia.html |
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China’s Refinery Throughput Jumped 19% In AprilIn the latest sign that Chinese oil demand growth is not as reluctant as some indicators might suggest, refinery throughput in the Asian powerhouse came close to 15 million bpd last month. The daily average of 14.87 million bpd represented an 18.9% increase on the year and was the second-highest since records began, Reuters noted in a report. At the same time, the April figure was a decline on the March average which was record-breaking, driven by solid fuel demand from abroad and the race to build inventories ahead of the start of maintenance… Read more at: https://oilprice.com/Energy/Energy-General/Chinas-Refinery-Throughput-Jumped-19-In-April.html |
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Biden will cut international trip short as Washington scrambles to avoid debt defaultThe White House and Congress have about two weeks to raise or extend the debt ceiling before the U.S. risks its first-ever default. Read more at: https://www.cnbc.com/2023/05/16/debt-ceiling-white-house-meeting.html |
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Why Home Depot’s weak outlook could be a warning sign for Target earningsHome Depot signaled that consumers are pulling back on discretionary spending even during the busier spring season. Read more at: https://www.cnbc.com/2023/05/16/home-depot-outlook-could-be-a-warning-sign-for-target-earnings.html |
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Homebuilder sentiment pulls out of negative territory for the first time in nearly a yearIt’s the fifth straight month of gains and the first reading of builder sentiment since July that wasn’t negative. Read more at: https://www.cnbc.com/2023/05/16/homebuilder-sentiment-may-2023.html |
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Here’s what happened during OpenAI CEO Sam Altman’s first hearing on artificial intelligenceSeveral lawmakers brought up Section 230 of the Communications Decency Act, the law that has served as the tech industry’s legal liability shield for decades. Read more at: https://www.cnbc.com/2023/05/16/openai-ceo-hearing-senators-aim-to-avoid-redo-of-social-media-harms.html |
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Major investors loaded up on regional bank stocks during a turbulent first quarterSome notable investors picked up shares in the sector for either a short-term trade or a conviction bet that the industry would weather the storm. Read more at: https://www.cnbc.com/2023/05/16/major-investors-loaded-up-on-regional-bank-stocks-during-a-turbulent-first-quarter.html |
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Home Depot just forecast weak consumer demand — here’s what that could mean for the rest of the economyThe broader-market implications of Tuesday morning’s post-earnings stock move for Home Depot are going to be significant. Read more at: https://www.cnbc.com/2023/05/16/what-home-depots-poor-outlook-means-for-the-stock-market-and-economy.html |
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CNN’s CEO stands by Trump town hall but acknowledges production weaknesses, sources sayCNN CEO Chris Licht internally acknowledged some weaknesses with how the network showcased Donald Trump’s town hall. Read more at: https://www.cnbc.com/2023/05/16/cnn-ceo-trump-town-hall-issues.html |
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Ron DeSantis just made it clear he’s going to fight Trump on abortion“He won’t answer whether he would sign it or not,” DeSantis said of Trump when asked about a state bill banning most abortions after six weeks of pregnancy. Read more at: https://www.cnbc.com/2023/05/16/ron-desantis-to-fight-donald-trump-on-abortion.html |
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Ex-Apple employee accused of stealing trade secrets is exec at Baidu self-driving car joint ventureWeibao Wang is a senior executive at Jidu, an electric vehicle joint venture between Baidu and Chinese car maker Geely. Read more at: https://www.cnbc.com/2023/05/16/ex-apple-employee-accused-of-stealing-secrets-is-jidu-automotive-exec.html |
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Here’s where Biden and McCarthy stand on debt ceiling talks heading into today’s meetingThe discussions have high stakes. Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. Read more at: https://www.cnbc.com/2023/05/16/debt-ceiling-update-white-house-meeting.html |
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Apple’s next big iPhone update lets you create a digital voice that sounds like youThe new technology in Apple’s iOS 17 is part of a broader suite of accessibility features and is powered by on-device machine learning technology. Read more at: https://www.cnbc.com/2023/05/16/apple-ios-17-update-to-intro-personal-voice-that-sounds-like-you.html |
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Top Apple analyst says iPhone 16 Pro will get an even bigger screen and new periscope cameraApple analyst says iPhone 16 Pro will get an even bigger screen and a new periscope camera. Read more at: https://www.cnbc.com/2023/05/16/apple-iphone-16-pro-will-have-bigger-screen-periscope-camera-kuo.html |
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Black Sea grain deal that reopened key Ukraine ports set to expire this week as Kremlin mulls a potential extensionThe Black Sea Grain Initiative, which reopened critical Ukrainian ports during Russia’s war, is set to expire on May 18. Read more at: https://www.cnbc.com/2023/05/16/black-sea-grain-deal-set-to-expire-this-week.html |
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Russia Says It Took Out US-Supplied Patriot Missile In Hypersonic Strike On KievRussia’s military may have taken out a US-supplied Patriot anti-air battery in Ukraine, which if true would be a very significant first since the advanced Raytheon-made defense weapon was deployed there. This came as Ukrainian officials have cited an exceptionally dense attack on Kyiv overnight, which included cruise missiles and drones, and even allegedly Kinzhal hypersonic missiles. Ukraine was hit by at least 18 missiles and nine drones were sent, with media reports saying some six ballistic missiles (including Kinzhal) were launched. But the Ukrainians are claiming that most or all of them were intercepted.
Read more at: https://www.zerohedge.com/geopolitical/russia-says-it-took-out-us-supplied-patriot-missile-unit-hypersonic-strike-kiev |
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FBI Responds To Durham Report, Acknowledges ‘Missteps’Authored by Gary Bai via The Epoch Times (emphasis ours), The Federal Bureau of Investigation (FBI) responded to Special Counsel John Durham’s report on Monday by acknowledging mistakes in its 2016-2017 investigation of the Trump campaign and noting that the agency had rolled out reforms in response to the mistakes.
Read more at: https://www.zerohedge.com/political/fbi-responds-durham-report-acknowledges-missteps |
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Ukraine Officially Joins NATO Cyber Defense Center, Inching Toward Full MembershipUkraine has formally become a member of NATO Cyber Defense, as but the latest example of member nations seeking to bring the country along toward eventual full NATO membership. “The flag of Ukraine has been officially raised at the headquarters of the Joint Center for Advanced Technologies for NATO Cyber Defense in Tallinn (Estonia), the Ministry of Foreign Affairs of Ukraine reports,” Interfax reports Tuesday.
It went on to thank the Western nation which sponsored Ukraine’s track to membership in the organization, as well as the governmen … Read more at: https://www.zerohedge.com/geopolitical/ukraine-officially-joins-nato-cyber-defense-center-inching-toward-full-membership |
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Trump Vows To Release Remaining JFK Assassination Files If Re-ElectedAuthored by Steve Watson via Summit News,
Trump made the announcement in a Monday interview with The Messenger, vowing that every single remaining file on the JFK assassination would be made public. “I released a lot, as you know. And I will release everything else,” Trump said. It would mean that some 4300 files that are still redacted would become available. In 2018, Trump Read more at: https://www.zerohedge.com/political/trump-vows-release-remaining-jfk-assassination-files-if-re-elected |
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Teachers and nurses dragged into higher taxes, warns think tankThe Institute for Fiscal Studies warns a freeze on income tax thresholds will hit middle earners. Read more at: https://www.bbc.co.uk/news/business-65608331?at_medium=RSS&at_campaign=KARANGA |
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Bank of England economist sorry for ‘accept you’re poorer’ remarkHuw Pill says he regrets saying people should get used to being poorer or risk high inflation. Read more at: https://www.bbc.co.uk/news/business-65609792?at_medium=RSS&at_campaign=KARANGA |
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More migrant fruit pickers welcome in UK, says PMRishi Sunak says more visas will be available after the home secretary said the UK could train its own. Read more at: https://www.bbc.co.uk/news/business-65596502?at_medium=RSS&at_campaign=KARANGA |
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Mining minnows? Here’s a list of top smallcap buys & sells by MFs in AprAccording to a report by ICICIDirect, top mutual funds bought and sold these 10 smallcap stocks in April Read more at: https://economictimes.indiatimes.com/markets/web-stories/mining-minnows-heres-a-list-of-top-smallcap-buys-amp-sells-by-mfs-in-apr/articleshow/100284713.cms |
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What should be investment strategy for HNIs after tax blow to Debt MF?Changes in taxation for debt mutual funds have led to a shift in investment strategy for high net worth individuals. Debt funds no longer offer the same high post-tax return and diversification, requiring investors to look for alternative investments to diversify their portfolio risks. Advisors suggest a three-part investment strategy to replace debt funds that includes high quality debt investments, domestic equity exposure, and other uncorrelated assets like high yield debt instruments, hedge funds, and more. It is expected that the third component will generate around 7-9% post-tax basis and new markets will emerge, though investors may have to sacrifice liquidity. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/what-should-be-investment-strategy-for-hnis-after-tax-blow-to-debt-mf/articleshow/100280369.cms |
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LIC to declare fourth quarter results on May 24Life Insurance Corp (LIC) will announce its Q4 earnings on May 24. In Q3, the state-owned insurer posted a 14.6% YoY rise in gross premium, a 31.2% YoY increase in single premium, a 10.8% rise in first-year premium, and a 5.9% uptick in renewal premium. LIC recently appointed Siddhartha Mohanty as chairman of the firm until June 2023. LIC also has an equity portfolio of about Rs 10 lakh crore ($135bn) with investments in 273 stocks. During Q1 2023, LIC raised investments in IRB Infra, Infosys, RIL, Maruti Suzuki, TCS, Tech Mahindra Dr Reddy’s Lab, GAIL and Container Corporation of India. Read more at: https://economictimes.indiatimes.com/markets/stocks/earnings/lic-to-declare-fourth-quarter-results-on-may-24/articleshow/100284458.cms |
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Key Words: Comcast is ‘more likely than not’ to sell Hulu stake to Disney next year, CEO saysThe Hulu ownership saga between Walt Disney Co. and Comcast Corp. looks ever more likely to end with the most logical conclusion. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-71F7-61241D55857D%7D&siteid=rss&rss=1 |
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Market Snapshot: Dow falls, Nasdaq edges up with U.S. debt-ceiling talks in focusU.S. stocks trade mostly lower Tuesday, with the Dow under pressure after Home Depot’s sales disappointed and attention turns to debt-ceiling talks. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-71F6-70F04E5B8AEF%7D&siteid=rss&rss=1 |
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The Tell: Why stock-market bears are inadvertently supporting a rally despite some bad newsThe U.S. stock market has been doing surprisingly well in 2023 despite all the negative news on the financial markets. Why it has failed to drop on bad news. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-71F7-40090BBAA55A%7D&siteid=rss&rss=1 |
Overnight major attack on Ukrainian capital, via Reuters.Serhiy Popko, the head of the Kyiv city military administration, described the barrage as “exceptional in its density, with t …
FBI Director Christopher Wray speaks during a press conference to announce an international ransomware enforcement action, at the Justice Department in Washington, on Jan. 26, 2023. (Mandel Ngan/AFP via Getty Images)“The conduct in 2016 and 2017 that Special Counsel Durham examined was the reason that current FBI leadership already implemented dozens of corrective actions, which have now been in place for so …
Ukraine’s flag raised at NATO Cyber CenterA message posted by Ukraine’s ministry of foreign affairs said, “Today the National Flag of Ukraine is officially raised at the Headquarters of the NATO Cooperative Cyber Defense Centre of Excellence in Tallinn, marking official accession of Ukraine to the CCDCOE.”
Bettmann / Getty ImagesDonald Trump has promised to release all outstanding files on the assassination of John F. Kennedy should he be re-elected as President next year.