However, all is not to be celebrated so soon as the markets reached a resistance of the Jan 6 and 7 sessions. Yesterday’s remarkable market reversal is being explained away by analysts, but tomorrow is going to be telling.
Powell’s testimony easing fears of an ultra-hawkish Fed may not be enough to ease investors’ fears.
Empty grocery shelves return as sick employees, supply chain delays collide. Retailers detail staffing shortages as omicron rages, but some investors see it as a short-term hit.
China Boosts Imports Of Cheap Oil From Sanctioned Iran And Venezuela. Oil Prices Jump Over 3% Ahead Of Inventory Data
Hit ‘MORE’ to read behind the Headlines!
The Market in Perspective
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Saudi Aramco Is Fighting To Regain A Key European MarketIn a move to regain some of its former glory in the North West European crude oil and products market, Saudi Aramco Trading Company (ATC) has clinched a major 110,000 bpd supply deal with international independent private equity group Klesch Group. According to statements made by ATC, the deal entails the supply of 110,000 bpd of crude to the Danish Kalundborg Refinery, following the signing of an agreement with Klesch Group. The deal entails not only Arabian crude placement but also third-party crude and condensate, with a provision of refined Read more at: https://oilprice.com/Latest-Energy-News/World-News/Saudi-Aramco-Is-Fighting-To-Regain-A-Key-European-Market.html |
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China Boosts Imports Of Cheap Oil From Sanctioned Iran And VenezuelaCheaper crude from Iran and Venezuela while international oil benchmarks were rallying was incentive enough for the world’s top oil importer, China, to purchase in 2021 the most crude from the two U.S.-sanctioned exporters in three years, shrugging off risks of penalties from the United States. Chinese refiners imported 53 percent more oil from Iran and Venezuela last year compared to 2020, according to estimates from market intelligence firm Kpler cited by Bloomberg. In total, China imported last year 324 million barrels of crude from Iran and Read more at: https://oilprice.com/Latest-Energy-News/World-News/China-Boosts-Imports-Of-Cheap-Oil-From-Sanctioned-Iran-And-Venezuela.html |
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Oil Prices Jump Over 3% Ahead Of Inventory DataOil prices jumped more than 3% on Tuesday afternoon in the runup to the much-watched API crude oil inventory data report as doubts continue to be raised about OPECs ability to respond to an increase in demand. At 11:54 a.m. EST, WTI was trading up $3.04 (+3.89%) per barrel at $81.27. The Brent crude oil benchmark was trading up $2.76 (+3.41%) per barrel at $83.63 for the highest level this year. On Monday, the narrative was precisely the opposite, as Omicron fears cast doubt over the short-term oil demand effects, particularly with China, Read more at: https://oilprice.com/Energy/Oil-Prices/Oil-Prices-Jump-Over-3-Ahead-Of-Inventory-Data.html |
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Gas Prices In Europe Drop As U.S. LNG Flotilla ArrivesA flotilla of liquefied natural gas (LNG) from the US has finally arrived in Europe, increasing LNG imports on the fuel-starved continent to a two-year high. The fresh injection of natural gas is helping to offset declining Russian shipments. Prices of European natural gas fell Monday. Data compiled by Bloomberg shows LNG gas imports in northwest Europe jumped to their highest levels since December 2019. The supply comes from a flotilla of up to 20 LNG vessels from the US that began their sailings in mid/late December. Fresh supplies of LNG Read more at: https://oilprice.com/Energy/Natural-Gas/Gas-Prices-In-Europe-Drop-As-US-LNG-Flotilla-Arrives.html |
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Kazakhstans Oil Output To Return To Pre-Unrest Level Within DaysKazakhstans daily oil production is expected to return to pre-unrest levels by the end of this week, as Chevron has started to gradually restore the curtailed output, advanced oil data analytics provider OilX says. The impact of the disruptions due to the unrest in OPEC+ producer Kazakhstan is estimated at 73,000 barrels per day (bpd), said OilX, which expects production to gradually increase by January 14 to the levels seen before January 6. Protests erupted in Kazakhstan early last week over higher fuel prices. The government had lifted Read more at: https://oilprice.com/Latest-Energy-News/World-News/Kazakhstans-Oil-Output-To-Return-To-Pre-Unrest-Level-Within-Days.html |
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Climate Activists Urge PR Agencies To Drop Fossil Fuel ClientsClimate campaigners are taking their fight one step further by targeting advertising and public relations agencies working with the fossil fuel industry, demanding that communications groups drop such clients and stop greenwashing their image. The worlds largest PR company, Edelman, undertook in November a global client review following a report in September from Clean Creatives, which called out the worlds largest ad and PR agencies for working with clients in the fossil fuel industry. The F-List 2021 compiled by Clean Read more at: https://oilprice.com/Energy/Energy-General/Climate-Activists-Urge-PR-Agencies-To-Drop-Fossil-Fuel-Clients.html |
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Walgreens CEO says company is looking into strategic options for U.K.-based Boots businessWalgreens Boots Alliance CEO Roz Brewer said Tuesday that the retailer has begun a “strategic review” of its Boots business. Read more at: https://www.cnbc.com/2022/01/11/walgreens-ceo-weighing-strategic-options-for-uk-based-boots.html |
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Retailers detail staffing shortages as omicron rages, but investors see it as short-term hitRetailers have yet to report their holiday-quarter results, but some of them offered analysts and investors a preview during the ICR conference this week. Read more at: https://www.cnbc.com/2022/01/11/retailers-see-staffing-challenges-as-omicron-rages-sales-taking-a-hit.html |
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FAA briefly grounded planes in Western U.S. as ‘precaution’ around time North Korea tested missileThe FAA said Tuesday that it briefly paused departures at some West Coast airports Monday evening. It’s unclear if the action was connected to missile test. Read more at: https://www.cnbc.com/2022/01/11/faa-briefly-grounded-planes-in-western-us-as-precaution.html |
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WHO says omicron is life threatening for unvaccinated, elderly and people with underlying conditionsDr. Mike Ryan, director of the WHO’s health emergencies program, said omicron represents a “massive threat” to the lives of the unvaccinated. Read more at: https://www.cnbc.com/2022/01/11/who-says-omicron-is-life-threatening-for-unvaccinated-elderly-underlying-conditions.html |
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France reports new Covid infection record with daily cases surging to over 360,000France is about to implement a strict Covid passport system whereby citizens will need to be vaccinated before they can enter restaurant or indoor events. Read more at: https://www.cnbc.com/2022/01/11/france-reports-new-covid-infection-record-with-omicron-spreading.html |
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Empty grocery shelves return as sick employees, supply chain delays collideShares of major grocers fell on Tuesday, after Albertsons said omicron has compounded out-of-stocks. Read more at: https://www.cnbc.com/2022/01/11/empty-grocery-shelves-return-as-sick-employees-supply-chain-delays-collide.html |
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CDC director says Covid cases on cruise ships surged 30-fold in last two weeksThe CDC last month warned against all cruise ship travel. Read more at: https://www.cnbc.com/2022/01/11/cdc-director-says-covid-cases-on-cruise-ships-surged-30-fold-in-last-two-weeks.html |
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U.S. sets fresh records for Covid hospitalizations and cases with 1.5 million new infectionsCovid hospitalizations surpassed last winter’s peak over the weekend as the U.S. reported another single-day record of nearly 1.5 million new case Monday. Read more at: https://www.cnbc.com/2022/01/11/omicron-variant-us-sets-fresh-records-for-covid-hospitalizations-and-cases-with-1point5-million-new-infections.html |
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Stocks making the biggest moves midday: General Electric, Rivian, Illumina and moreThese are the stocks posting the largest moves in midday trading. Read more at: https://www.cnbc.com/2022/01/11/stocks-making-the-biggest-moves-midday-general-electric-rivian-illumina-and-more.html |
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Domino’s Pizza forecasts soaring food costs in 2022, reiterates long-term sales outlookDomino’s Pizza expects soaring food prices in 2022, but reiterated its long-term sales outlook. Read more at: https://www.cnbc.com/2022/01/11/dominos-pizza-expects-soaring-food-costs-in-2022-backs-long-term-outlook.html |
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Fauci says Sen. Rand Paul’s false accusations ‘kindles the crazies’ and have incited death threatsIt’s the latest in a longstanding feud between the two government officials. Read more at: https://www.cnbc.com/2022/01/11/fauci-sen-pauls-accusations-kindles-the-crazies-incited-death-threats.html |
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Supreme Court Justice Neil Gorsuch again doesn’t wear mask on bench, Sotomayor and Breyer log in remotelyTwo justices, Sonia Sotomayor and Stephen Breyer, appeared remotely due to apparent concerns about Covid-19 as Neil Gorsuch did not wear a mask. Read more at: https://www.cnbc.com/2022/01/11/supreme-court-justice-neil-gorsuch-has-no-mask-despite-covid-spike.html |
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Boeing 2021 deliveries surged, led by return of 737 Max, but were still behind AirbusBoeing logged 535 net orders last year, many of them for the Max and freighters Read more at: https://www.cnbc.com/2022/01/11/boeing-2021-deliveries-surge-led-by-return-of-737-max-but-still-behind-airbus.html |
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Paul Tudor Jones Warns Of “Major Shift” That Will Have Serious “Consequences” For MarketsPaul Tudor Jones Warns Of “Major Shift” That Will Have Serious “Consequences” For MarketsLast time Paul Tudor Jones made news on CNBC, the longtime macro manager proclaimed that the looming inflationary wave – still incipient at the time – would create serious ructions in both markets and the real economy.
Fast forward a few months, and with the S&P 500 headed for what would be the longest losing streak of the COVID era, the network brought PTJ back for an interview ahead of Fed Chair Jerome Powell’s nomination hearing. The former Tudor Investment chief said Tuesday morning that the trades that performed the best during the pandemic would likely soon tumbled back to earth.
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Turley: Democracy, Autocracy… Or Hypocrisy? Biden Calls For Changing The Filibuster RuleTurley: Democracy, Autocracy… Or Hypocrisy? Biden Calls For Changing The Filibuster RuleAuthored by Jonathan Turley, According to the Associated Press, President Joe Biden today will support changing the filibuster rule for voting rights legislation — a move widely viewed as effectively killing the rule. The report says that Biden will portray the choice starkly as one between democracy and autocracy. The AP, however, does not reference the third option of hypocrisy by failing to note that Biden vehemently opposed such moves for decades. He previously denounced killing the rule as “disastrous” for our democracy but now will declare the rule itself to be an existential threat to democracy. It is the latest example of President Biden’s embrace of “whatever it takes politics.” Read more at: https://www.zerohedge.com/political/turley-democracy-autocracy-or-hypocrisy-biden-calls-changing-filibuster-rule |
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Yesterday’s Remarkable Market Reversal ExplainedYesterday’s Remarkable Market Reversal ExplainedStocks are solidly in the green today after another early morning dump, with Powell’s testimony easing fears of an ultra-hawkish Fed, just as we predicted would happen first thing this morning…
… but the framework for today’s continuation was set during yesterday’s session, which saw the S&P experience a 2%, and the nasdaq a 3%, intraday reversal. What was behind the move? Well, according to JPMorgan’s trading desk, the move was triggered by dealer gamma positions and aided by retail investor buying, especially (and ironically) after JPMorgan’s Marko Kolanovic published his latest reco to BTFD just around noon when the reversal kicked in. So here is a more detailed explanation of what happened, first from JPM’s Michael Gormley who notes that gamma hedging drove the index lower at the start of the session. SPX dealer positioning has been near max short to the tune of ~$40bn, and with a 1.6% decline from SPX open, the pressure rose to around ~$60bn of theoretical gamma pressure, though it is likely less than that. Then, as the index rose, it became a feedback loop, and at least half of that had to be bou … Read more at: https://www.zerohedge.com/markets/yesterdays-remarkable-market-reversal-explained |
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FAA Briefly Grounded All West Coast Flights Over Claimed N.Korea Hypersonic Missile TestFAA Briefly Grounded All West Coast Flights Over Claimed N.Korea Hypersonic Missile TestIn a highly unusual move, the FAA ordered a brief full ground stop at all West Coast airports due to a ballistic missile launch by North Korea. The halt in flights reportedly lasted about five to seven minutes Monday afternoon, according to Newsweek, which broke the story. The missile launch occurred in the morning hours of Tuesday North Korea time. The stops were observed from southern California up to Portland. In reference to San Diego International Airport, a major hub where planes were ordered briefly grounded, Newsweek describes, “Sabrina LoPiccolo, spokeswoman for the airport, told Newsweek that the airport was instructed by air traffic of a national ground stop about 2:30 p.m. Pacific time. No reason was given for the stop, which lasted about five to seven minutes, she said.”
It’s as yet unclear … Read more at: https://www.zerohedge.com/geopolitical/faa-briefly-grounded-all-west-coast-flights-over-alleged-nkorea-hypersonic-missile |
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Many postmasters still in the dark over justiceThe Post Office has been unable to contact 126 people who were convicted on the basis of flawed evidence. Read more at: https://www.bbc.co.uk/news/business-59954980?at_medium=RSS&at_campaign=KARANGA |
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£150,000 starting salaries as firms fight for staffA shortage of talent is driving up wages worldwide, says professional recruitment firm Robert Walters. Read more at: https://www.bbc.co.uk/news/business-59949697?at_medium=RSS&at_campaign=KARANGA |
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World Bank warns global economy faces grim outlookThe bank predicts a “pronounced slowdown”, with global economic growth falling to 4.1% this year Read more at: https://www.bbc.co.uk/news/business-59946302?at_medium=RSS&at_campaign=KARANGA |
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Wipro Q3 Results Preview: 30% YoY revenue growth likely; margins may contract“Wipro had guided for 2-4 per cent CC (constant currency) growth in Q3 for IT services. We expect the company to report 4 per cent QoQ CC growth in revenues in IT services. We expect dollar revenue growth of 3.3 per cent QoQ, factoring in 70 bps cross-currency headwind,” said analysts at ICICIdirect. Read more at: https://economictimes.indiatimes.com/markets/stocks/earnings/wipro-q3-results-preview-30-yoy-revenue-growth-likely-margins-may-contract/articleshow/88829895.cms |
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Can Tata Teleservices plunge like Vodafone Idea tomorrow?Tata Teleservices on Tuesday said it will convert the interest on deferred AGR dues into equity shares, giving the central government a 9.5 per cent stake in the firm. The interest comes out to be Rs 850 crore as per the company’s estimates. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/can-tata-teleservices-plunge-like-vodafone-idea-tomorrow/articleshow/88836380.cms |
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YES Sec sees Nifty hitting 32,000 in 2025; 16 stocks that may return up to 100% in 2022India is expected to continue gaining share in the emerging markets basket Read more at: https://economictimes.indiatimes.com/markets/stocks/news/yes-sec-sees-nifty-hitting-32000-in-2025-16-stocks-that-may-return-up-to-100-in-2022/articleshow/88829219.cms |
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The Margin: What’s behind the success of Wordle? Some say it’s the free daily word puzzle’s ‘anti-game’ approachWordle, the web-based, no-frills daily word game, is already a sensation. Experts think they know why. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7859-2256B3A6FF56%7D&siteid=rss&rss=1 |
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Earnings Outlook: Delta Air reports this week, giving investors a first look into U.S. airlines’ performancesInvestors are about to get a first look into a U.S. air carrier’s bottom line this week amid ongoing concern about air traveling but hopes that a recovery is in the cards for the new year. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7858-AC01D4827216%7D&siteid=rss&rss=1 |
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: World can’t boost its way out of the pandemic using existing vaccines, WHO experts sayThe world cannot simply boost its way out of the coronavirus pandemic using existing vaccines, a group of experts said Tuesday, as they highlighted the need for new jabs that are better at stopping people becoming infected in the first place. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7859-0B4D5A59BD37%7D&siteid=rss&rss=1 |
