The market marginally improved today even though the latest inflation data from the Consumer Price Index shows year-over-year inflation has increased to 7% – the fastest pace since 1982. From the BLS:
In December, the Consumer Price Index for All Urban Consumers rose 0.5 percent, seasonally adjusted, and rose 7.0 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.6 percent in December (SA); up 5.5 percent over the year (NSA).
The DOW was up 0.1%, NASDAQ up 0.2%, and the S&P up 0.3%. Bitcoin improved to $43,670. WTI crude now up to $82.61. Gold also up at $1,816. The markets have been little affected by the record Omicron cases.
As usual, we have included below the headlines and news summaries moving the markets today.
The Market in Perspective
| Here are the headlines moving the markets. | |
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Norway Is Determined To Boost Oil DiscoveriesNorways oil majors as well as the countrys government and oil regulator hope to get every last drop of oil out of the North Sea before global demand eventually wanes. Continuing with its plan to run low-carbon oil operations worldwide for decades to come, while also focusing on developing its clean energy sector, Norway is making more oil discoveries and expects to maintain, or even increase, output so long as demand remains high. In December last year, Equinor announced it would be drilling around 25 exploration wells in Norwegian Read more at: https://oilprice.com/Energy/Energy-General/Norway-Is-Determined-To-Boost-Oil-Discoveries.html |
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Saudi Aramco Buys Stake In Refinery In Russias BackyardSaudi Arabia is expanding its downstream presence and crude customers in Eastern Europe, traditionally Russias backyard, by buying a stake in a Polish refinery. Saudi oil giant Aramco has signed a deal with Polish refiner and fuel retailer PKN Orlen to buy 30 percent in a 210,000-bpd refinery in Gdansk, Poland, 100 percent in an associated wholesale business, and 50 percent in a jet fuel marketing joint venture with BP, the worlds largest oil company and top oil exporter said on Wednesday. The acquisitions are subject to regulatory Read more at: https://oilprice.com/Latest-Energy-News/World-News/Saudi-Aramco-Buys-Stake-In-Refinery-In-Russias-Backyard.html |
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Chinese Oil Major CNOOC Targets Record High Production This DecadeChina National Offshore Oil Corporation (CNOOC) is planning to boost its 2022 oil and gas production by 10 percent compared to last years goal, as it plans 13 new projects to come on stream and drill 360 exploration wells this year, and continue raising output to records this decade. CNOOC set its production target at 600 million to 610 million barrels of oil equivalent (boe) for 2022, up from the 2021 target of 545-555 million boe, it said in the strategy and operations guidance for this year. In 2022, CNOOC expects China to account for Read more at: https://oilprice.com/Energy/Crude-Oil/Chinese-Oil-Major-CNOOC-Targets-Record-High-Production-This-Decade.html |
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The Yemen War: An Underestimated Risk For Oil PricesSaudi Arabias six-year-long offensive in Yemen continues to generate considerable human suffering, fears over Middle East stability, and attention-grabbing headlines. The civil war is estimated to have claimed over 130,000 lives, most of whom were civilians, and sparked what the UN describes as the worlds worst humanitarian crisis. The conflict has its roots in the 2011 Arab Spring, which saw the ousting of former strongman Ali Abdullah Saleh and the appointment of Sunni politician Abdrabbuh Mansour Hadi as president in 2012. The Read more at: https://oilprice.com/Energy/Energy-General/The-Yemen-War-An-Underestimated-Risk-For-Oil-Prices.html |
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A Watershed Moment That Could Send Oil Prices To $100Crude oil prices could reach $100 per barrel, according to Ninepoint Partners portfolio manager Eric Nuttall, the latest to add to a growing number of analysts expecting three-digit oil prices. The oil market remains exceptionally tight, Nuttall told Bloomberg, adding, When we look at global oil demand, were back to pre-COVID levels. So there are strong reasons to believe the market will continue to grow throughout this year as Omicron passes. But the real story remains on supply. I believe were Read more at: https://oilprice.com/Energy/Crude-Oil/A-Watershed-Moment-That-Could-Send-Oil-Prices-To-100.html |
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The U.S. Spent $1.1B On Failed Carbon Capture Projects In A DecadeThe U.S. Department of Energy has spent $1.1 billion on 11 carbon capture projects at coal-fired power plants and industrial facilities since 2009, most of which turned out to be failures and were never built, the U.S. Government Accountability Office (GAO) said in a recent report. The Department of Energy provided almost $684 million to eight projects for carbon capture at coal plants, only one of which resulted in an operational facility, the GAO found. Three projects, including two prior to receiving funding, were withdrawn, and one was built Read more at: https://oilprice.com/Latest-Energy-News/World-News/The-US-Spent-11B-On-Failed-Carbon-Capture-Projects-In-A-Decade.html |
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New Jersey reinstates public health emergency as omicron surge overwhelms hospitalsMurphy said the state is seeing nearly 35,000 new cases a day and in the past two weeks, more than 10,000 residents have required hospitalization due to Covid. Read more at: https://www.cnbc.com/2022/01/12/new-jersey-reinstates-public-health-emergency-as-omicron-overwhelms-hospitals.html |
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Natural gas surges 14% as cold snap ahead is expected to boost demandNatural gas has started 2022 on a bang with a gain of nearly 30%. Read more at: https://www.cnbc.com/2022/01/12/natural-gas-surges-13percent-as-cold-snap-ahead-is-expected-to-boost-demand.html |
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WHO says omicron cases are ‘off the charts’ as global infections set new records“The sheer volume of cases is putting a burden on health-care systems,” said Maria Van Kerkhove, WHO’s technical lead on Covid-19. Read more at: https://www.cnbc.com/2022/01/12/who-says-omicron-cases-are-off-the-charts-as-global-infections-set-new-records.html |
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Rapidly rising food prices may give restaurants an edge—here’s whyThe cost of eating at home is getting more expensive at a faster pace than dining out. Read more at: https://www.cnbc.com/2022/01/12/rapidly-rising-food-prices-may-give-restaurants-an-edgeheres-why.html |
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Omicron disrupts transit, emergency services as workers call out sick: ‘Most people are going to get Covid’“It’s hard to process what’s actually happening right now, which is most people are going to get Covid,” acting FDA Commissioner Janet Woodcock said. Read more at: https://www.cnbc.com/2022/01/12/covid-news-omicron-disrupts-essential-services-as-workers-call-out.html |
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5 things to know before the stock market opens WednesdayU.S. stock futures were picking up steam higher Wednesday after another hot but expected inflation report. Read more at: https://www.cnbc.com/2022/01/12/5-things-to-know-before-the-stock-market-opens-wednesday-jan-12.html |
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Inflation played a role in online sales hitting record $204 billion over the holidaysOnline prices increased 3.1% in December compared with the prior year and rose 0.8% month over month, according to Adobe Analytics. Read more at: https://www.cnbc.com/2022/01/12/inflation-fuels-holiday-online-sales-to-record-204-billion-adobe.html |
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Apple may bid for MLB weekday package, marking its first foray into live sportsMLB and Apple are in talks to stream live regular-season games during the week. Read more at: https://www.cnbc.com/2022/01/12/apple-potential-bid-for-mlb-package-could-bring-big-player-into-sports.html |
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Stocks making the biggest moves premarket: DoorDash, Didi, Philips and othersThese are the stocks posting the largest moves before the bell. Read more at: https://www.cnbc.com/2022/01/12/stocks-making-the-biggest-moves-premarket-doordash-didi-philips-and-others-.html |
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UK could be among the first countries to emerge from Covid pandemic, top scientist saysThe U.K. could be one of the first countries to emerge from the Covid-19 pandemic, according to one leading scientist. Read more at: https://www.cnbc.com/2022/01/12/uk-could-be-first-country-to-emerge-from-pandemic-expert-says.html |
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Should we treat Covid like the flu? Europe is slowly starting to think soThere are growing calls in Europe for the coronavirus to be treated as an endemic illness, like the flu, as politicians ache for a return to normality. Read more at: https://www.cnbc.com/2022/01/12/should-we-treat-covid-like-the-flu-europe-is-starting-to-think-so.html |
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Travel is ‘roaring back’ — but the industry might not be ready for a boomDespite the omicron variant, travelers are making plans to hit the road this year, whether the industry is ready for them or not. Read more at: https://www.cnbc.com/2022/01/12/travel-is-roaring-back-thats-good-and-bad-for-travelers.html |
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Cramer’s lightning round: I would buy some Novocure shares“Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed. Read more at: https://www.cnbc.com/2022/01/11/cramers-lightning-round-i-would-buy-some-novocure-shares.html |
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US Record Smallest Monthly Budget Deficit Since December 2019US Record Smallest Monthly Budget Deficit Since December 2019After spending like a drunken sailor over the past two years, and even launching helicopter money to fund its unprecedented spending spree in the post-covid era, the US has become borderline austere in recent months. According to the latest Treasury monthly statement, in December, the US budget deficit was a paltry $21.3 billion, which while slightly more than expectations of a just $5 billion deficit, was a huge drop from the $143.6 billion deficit record in December 2020. The deficit was the result of $487 billion in receipts, a whopping increase of 40.6% Y/Y and $508 billion in outlays, which was just a 3.7% increase vs a year ago. The December deficit of $21.3 billion was also the smallest deficit going back to December 2019. On a year to date basis, in the first three months of fiscal 2022, the US has collected $1.052 trillion while spending $1.430 trillion, for a cumulative deficit of $378 billion.
While overall spen … Read more at: https://www.zerohedge.com/markets/us-record-smallest-monthly-budget-deficit-december-2019 |
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Biden Job Approval Plummets To 33% As Majority Think US Democracy ‘In Danger Of Collapse’Biden Job Approval Plummets To 33% As Majority Think US Democracy ‘In Danger Of Collapse’President Joe Biden’s approval rating has hit an all-time low in Quinnipiac’s latest poll – which has the oldest US president at just 33%, while 53% of those polled disapprove.
The poll also revealed that: A majority of Americans, 58 – 37 percent, think the nation’s democracy is in danger of collapse. Republicans say 62 – 36 percent, independents say 57 – 39 percent, and Democrats say 56 – 37 percent they think the nation’s democracy is in danger of collapse. Read more at: https://www.zerohedge.com/political/biden-job-approval-plummets-33-majority-think-us-democracy-danger-collapse |
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US Gov’t Spent $1.1B On Failed Carbon Capture Projects In A DecadeUS Gov’t Spent $1.1B On Failed Carbon Capture Projects In A DecadeAuthored by Tsvetana Paraskova via OilPrice.com, The U.S. Department of Energy has spent $1.1 billion on 11 carbon capture projects at coal-fired power plants and industrial facilities since 2009, most of which turned out to be failures and were never built, the U.S. Government Accountability Office (GAO) said in a recent report.
The Department of Energy provided almost $684 million to eight projects for carbon capture at coal plants, only one of which resulted in an operational facility, the GAO found. Three projects, including two prior to receiving funding, were withdrawn, and one was built and entered operations, but halted operations in 2020 due to changing economic conditions. The DOE terminated funding agreements with the other four projects prior to construction.
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Fed’s Beige Book Sees Continued Easing Of Shortages, But Warns Of Omicron-Linked SlowdownsFed’s Beige Book Sees Continued Easing Of Shortages, But Warns Of Omicron-Linked SlowdownsJanuary’s Beige Book was once again headlined by the utterly useless comment that “economic activity across the United States expanded at a modest pace in the final weeks of 2021” that has come to reflect the snoozy name of the report. And while we saw recurring and familiar themes mentioned over and over, including supply chain issues and labor shortages, the report noted some signs of easing inflation perhaps as a result of Omicron (which was mentioned no less than 44 times) began to hit activity. That said, there were few big picture surprises, with the report noting that growth continued to be constrained by ongoing supply chain disruptions and labor shortages, and despite the modest pace of growth, demand for materials and inputs, and demand for workers, remained elevated among businesses. Lending activity picked up slightly toward the end of the year, led by commercial real estate borrowers. At the same time, consumer spending continued to grow at a steady pace (funded primarily by a surge in credit card spending) ahead of the rapid spread of the Omicron COVID-19 variant. Perhaps the best news is that after peaking in September, mentions of “shortages” have dropped for the 3rd consecutive month to levels from last June. Read more at: https://www.zerohedge.com/markets/feds-beige-book-sees-continued-easing-shortages-warns-omicron-linked-slowdowns |
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Pret boosts pay to £10 per hour for thousands of staffThe sandwich chain Pret A Manger is boosting its pay rates for the second time in four months. Read more at: https://www.bbc.co.uk/news/business-59967949?at_medium=RSS&at_campaign=KARANGA |
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US will remove UK steel tariffs ‘when the time is right’Trump-era steel tariffs remain in place on UK exports, though they have been removed for EU products. Read more at: https://www.bbc.co.uk/news/business-59972348?at_medium=RSS&at_campaign=KARANGA |
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Pensions and benefits will not keep up with cost of living, warns think tankA think tank says a temporary rise would help 10 million people facing hardship, but at a heavy cost. Read more at: https://www.bbc.co.uk/news/business-59966752?at_medium=RSS&at_campaign=KARANGA |
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Will pre-Budget rally lift Sensex to record high? ETMarkets poll finds outPankaj Pandey, Head – Research at ICICIdirect, said he remains constructive on Nifty50 and Sensex, expecting them to trade with positive bias in the run-up to the Union Budget. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/will-pre-budget-rally-lift-sensex-nifty-to-record-levels-etmarkets-poll-finds-out/articleshow/88848719.cms |
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What made Vodafone Idea opt for conversion? What it hints atPost conversion, the government would likely hold around 35.8 per cent of the total outstanding shares Read more at: https://economictimes.indiatimes.com/markets/stocks/news/what-made-vodafone-idea-opt-for-conversion-what-does-it-hint-at/articleshow/88850942.cms |
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Skyrocketing Costs: US inflation hits 39-year highMarket expectations for Fed tightening expected in March and 2022 as a whole were largely unchanged after the report Read more at: https://economictimes.indiatimes.com/markets/stocks/news/us-inflation-hits-39-year-high/articleshow/88859292.cms |
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Market Snapshot: Dow dips, S&P 500 inches higher as investors wrangle with inflation near 40-year highU.S. stock indexes trade flat or modestly higher Wednesday afternoon following an inflation reading that came in near a four-decade high. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-785D-DB84490150A5%7D&siteid=rss&rss=1 |
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: Biden ‘will still be looking’ to make parts of Build Back Better happen, says top White House economistTop White House economist Cecilia Rouse on Wednesday uses the past tense to refer to President Joe Biden’s big social-spending and climate plan, but says parts of it still could become reality. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7862-2656F6CBA3DE%7D&siteid=rss&rss=1 |
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: The average amount of time you have to escape a deadly fire has plummeted in recent years — here’s whyMultiple devastating apartment fires in recent weeks have renewed calls for improved fire safety across the country. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-785B-29C67676B682%7D&siteid=rss&rss=1 |
