02August2022 Market Close & Major Financial Headlines: Another Session Of Financial Uncertainty Results In A Down Session

Gas Shortage Sparks Energy Security Fears In Asia

Its no secret that Russias invasion of Ukraine has had a massive global impact. From the sanctions to the natural gas supply cutoffs, the economic toll is both catastrophic and far from over. Currently, economists and other experts are trying to predict how different parts of the world will react to the gas shortage. So far, estimates are not very cheerful. Gas Shortage Already Hurting Both Europe and Russia Most people working in commodities industries know that the Nord Stream 1 pipeline, which runs from Russia into Germany, was

Read more at: https://oilprice.com/Energy/Natural-Gas/Gas-Shortage-Sparks-Energy-Security-Fears-In-Asia.html

India Increases Crude Oil Windfall Tax

India may have rolled back its jet fuel and diesel taxes, but the government increased its windfall tax on crude oil exports by 4.41% on Tuesday to take effect on Wednesday. India initiated on July 1 a windfall tax on the country’s oil producers and oil refiners who are exporting more due to the high international price of crude oil and refined products. The windfall tax was originally set at 23,250 rupees per ton on oil producers and 6 rupees per liter on gasoline and jet fuel. The windfall tax on Gasoil exports was set at 13 rupees per liter

Read more at: https://oilprice.com/Latest-Energy-News/World-News/India-Increases-Crude-Oil-Windfall-Tax.html

Can Less Diversified Energy Companies Replicate Big Oils Success?

Earnings season for corporate America is well underway, with nearly 60% of S&P 500 companies having returned their Q2 2022 scorecards. While a good 73% of S&P 500 companies have reported a positive EPS surprise while 66% have exceeded revenue expectations, it’s the energy sector that is once again hogging the limelight, with records being set right, left and center. According to the latest earnings insights by FactSet, the positive EPS surprises reported by Chevron (NYSE: CVX) ($5.82 vs. $5.08), Exxon Mobil (NYSE: XOM)($4.14 vs. $3.94),

Read more at: https://oilprice.com/Energy/Energy-General/Can-Less-Diversified-Energy-Companies-Replicate-Big-Oils-Success.html

Oil Prices Rebound Ahead Of API Data As OPEC JTCC Sees Tighter Market

Oil prices resumed their climb on Tuesday ahead of the American Petroleum Institute inventory report later in the day, with both crude oil benchmarks regaining some of the lost ground from earlier in the week. By 1:39 p.m. ET, WTI had reclaimed a price above $95 per barrel, gaining 2.15% on the day to reach $95.91 per barrel. Brent crude rose $2 per gallon (+2%) to $102.00 per barrel. Both benchmarks were trading down earlier in the week on disappointing data from China that suggested the demand for crude was easing. But on Tuesday, as the OPEC

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Rebound-Ahead-Of-API-Data-As-OPEC-JTCC-Sees-Tighter-Market.html

Venezuela’s Oil Exports Drop By More than A Third In July

Venezuela’s crude oil exports fell in July, Refinitiv Eikon data showed on Tuesday, as oil markets are on the prowl for additional oil supplies to ease the tight market. Venezuela’s crude oil industry has been suffering for years due to a lack of maintenance and investment, in-country chaos, and U.S. sanctions. In July, power outages disrupted the state-run oil company’s operations, dragging the country’s oil exports down by 27% from June levels to just 460,323 barrels per day of crude and refined products, according to

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Venezuelas-Oil-Exports-Drop-By-More-than-A-Third-In-July.html

The Downside Risk Of Tomorrow’s OPEC+ Meeting

Reader Update:Whether you are new to the oil and gas industry or an energy market veteran, you will regret not signing up for Global Energy Alert. 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- After more than 2 years of coordinated production cuts, OPEC+ has reached the point when it no longer must increase production targets and needs to rethink the future of the 23-member oil group.- Most analysts expect no or

Read more at: https://oilprice.com/Energy/Energy-General/Oil-Prices-Could-Crash-If-OPEC-Doesnt-Deliver.html

Starbucks beats earnings and revenue estimates, despite lockdowns in China

Shares of Starbucks have fallen 27% this year, dragging its market value down to $98.37 billion.

Read more at: https://www.cnbc.com/2022/08/02/starbucks-sbux-q3-2022-earnings.html

Dolphins owner Stephen Ross suspended, fined $1.5 million after NFL probe cites tampering violations

The penalties mark the conclusion of the NFL’s investigation into reports of tampering and intentionally losing games by the Dolphins.

Read more at: https://www.cnbc.com/2022/08/02/nfl-dolphins-investigation-finds-tampering-violations-fines-owner-stephen-ross.html

Mall owners say retailers are still opening stores in spite of recession fears

Retailers in the U.S. have announced 4,432 store openings so far this year, compared with 1,954 store closings, according to data from Coresight Research.

Read more at: https://www.cnbc.com/2022/08/02/mall-owners-retailers-still-opening-stores-despite-recession-fears.html

Molson Coors stock falls as company cites split in consumer spending on beer

Molson Coors Beverage is seeing some beer drinkers trade down as inflation hits their wallets, but says others are still willing to pay more for their six-pack.

Read more at: https://www.cnbc.com/2022/08/02/molson-coors-stock-falls-as-company-cites-split-in-consumer-spending-on-beer.html

Taco Bell says its Mexican Pizza will be back in September

Mexican Pizza will be returning as a permanent menu item on September 15, according to Taco Bell.

Read more at: https://www.cnbc.com/2022/08/02/taco-bell-says-its-mexican-pizza-will-be-back-in-september.html

Ferrari boosts full-year guidance after a record second quarter

Ferrari increased its full-year guidance after a quarter that set records for revenue, profit and new orders.

Read more at: https://www.cnbc.com/2022/08/02/ferrari-race-q2-2022-earnings-and-guidance.html

JetBlue shares tumble as costs push it to a loss despite profit forecast on higher fares

JetBlue posted a second-quarter loss and scaled back capacity growth plans.

Read more at: https://www.cnbc.com/2022/08/02/jetblue-forecasts-return-to-profit-in-third-quarter-holds-back-on-growth-as-costs-surge.html

Israeli lidar maker Innoviz wins $4 billion Volkswagen contract for millions of sensors

Innoviz has struck a deal to supply lidar units to Volkswagen for millions of vehicles. The deal could be worth $4 billion over eight years, it said.

Read more at: https://www.cnbc.com/2022/08/02/innoviz-wins-4-billion-dollar-volkswagen-lidar-contract.html

Ford stock notches its best month since the Great Recession — and keeps rising

The stock advanced 32% in July, marking the best monthly percentage gain for Ford’s shares since a 127.4% surge in April 2009.

Read more at: https://www.cnbc.com/2022/08/01/ford-stock-posts-best-month-since-the-great-recession.html

PepsiCo takes $550 million stake in energy drink maker Celsius

PepsiCo announced Monday a $550 million investment in energy drink maker Celsius Holdings as part of a long-term distribution deal with the smaller company.

Read more at: https://www.cnbc.com/2022/08/01/pepsico-takes-550-million-stake-in-energy-drink-maker-celsius-.html

Nikola to acquire battery pack supplier Romeo Power in a $144 million deal

Nikola will acquire Romeo Power, a key supplier of battery packs for its trucks, in a $144 million all-stock transaction.

Read more at: https://www.cnbc.com/2022/08/01/nikola-nkla-to-acquire-romeo-power-rmo-.html

Starbucks union asks coffee giant to extend pay hikes, benefits to unionized stores

With pay hikes set to kick in at Starbucks cafes around the U.S., labor organizers are asking the coffee giant to extend the benefits to unionized stores as well without going through the bargaining process.

Read more at: https://www.cnbc.com/2022/08/01/starbucks-union-asks-coffee-giant-to-extend-pay-hikes-benefits-to-unionized-stores.html

Home prices cooled at a record pace in June, according to housing data firm

Home price gains are cooling fast, as demand wanes and still-tight supply builds.

Read more at: https://www.cnbc.com/2022/08/01/home-prices-cooled-at-record-pace-in-june-according-to-housing-data-firm.html

Biden DOJ Sues Idaho Over “Near-Total Ban” On Abortion

The Justice Department filed a lawsuit against Idaho on Tuesday, challenging the state’s near-total abortion ban which will take effect on August 25.

The lawsuit – which marks the DOJ’s 1st challenge since the Supreme Court overturned Roe v. Wade this summer, argues that Idaho’s law would violate the Federal Emergency Medical Treatment and Labor Act, which says that hospitals receiving Medicare funds “must provide medical treatment necessary to stabilize that condition before transferring or discharging the patient,” according to Tuesday’s filing.

“The Idaho law would make it a criminal offense for doctors to comply with EMTALA’s requirement to provide stabilizing treatment, even where a doctor determines that abortion is the medical treatment necessary to prevent a patient from suffering severe health risks or even death,” it continues.

Idaho’s law does allow for exceptions for rape or incest which has been reported to police …

Read more at: https://www.zerohedge.com/political/biden-doj-sues-idaho-over-near-total-ban-abortion

Investing Lessons Learned The Hard Way: How Math Works

Authored by Lance Roberts via RealInvestmentAdvice.com,

Every investor must learn the one investing lesson in surviving the long game: how math works. I recently received an email from a reader suggesting that the 2022 decline in the market is “no big deal” because of the stellar returns over the last decade. He quoted a snippet of an article by Ben Carlson.

“To be fair, these losses need to be put into perspective. The gains leading up to this slaughter were gigantic. These are the annual returns for the Nasdaq since the Great Financial Crisis ended:”

2009: +45.3%

2010: +18.0%

2011: -0.8%

2012: +17.9%

2013: +40.9%

2014: +14.7%

2015: +7.0%

2016: +8.9%

2017: +29.6%

2018: -2.8%

2019: +36.7%

2020: +44.9%

2021: +22.2%

For those of you scoring at home, that’s returns of more than 20% per year for 13 years!

Ben’s math is correct. As such, the reader’s email suggests the 2022 drawdown is nothing to be concerned with because …

Read more at: https://www.zerohedge.com/markets/investing-lessons-learned-hard-way-how-math-works

LA County Removes Citizenship Requirements For Government Jobs

LA County and California in general seem to be hellbent on self destruction.  They persistently defend their immigration policies which amount to an open border invitation for anyone to slip into the US without documentation.  They passed laws allowing illegal immigrants to obtain US driver’s licenses, and at least a million illegals have used the program so far.  LA County also kept most of the area under lockdown well after it became clear that the lockdowns were completely ineffective, and they just tried to bring back mask mandates for businesses again.

It’s as if they want to fail.

Now, the LA County Board of Supervisors has unanimously decided to allow illegal immigrants to take up positions in government without ever applying for citizenship.  The rule was passed under a new “inclusive hiring” program and was introduced by supervisors Hilda L. Solis and Sheila Kuehl in June 2021.  In her original statement addressing the policy, Solis wrote:

“Los Angeles County is a community of immigrants from each corner of the world. And while our County-government workforce reflects the community it represents, there is room for improvement. This motion seeks to make clear that the County, as one of the largest employers in the region, strives to be an inclusive and diverse workforce, and is committed to not excluding nor allowing citizenship to be a barrier to employment.”

It’s ju …

Read more at: https://www.zerohedge.com/political/la-county-removes-citizenship-requirements-government-jobs

Pfizer Board Member Predicts Monkeypox Will Become A ‘Public Health Failure’

Authored by Jack Phillips via The Epoch Times (emphasis ours),

Pfizer board member Dr. Scott Gottlieb warned that the United States lacks a federal infrastructure capable of dealing with public health emergencies such as monkeypox.

“Now if monkeypox ‌gains a permanent foothold in the U‌nited States and becomes an endemic virus that joins our circulating repertoire of pathogens, it will be one of the worst public health failures in modern times not only because of the pain and peril of the disease but also because it was so avoidable,” the former Food and Drug Administration head wrote in and op-ed for the New York Times.

“Our lapses extend beyond political decision making to the agencies tasked with protecting us from these threats.”

Read more at: https://www.zerohedge.com/medical/pfizer-board-member-predicts-monkeypox-will-become-public-health-failure

BA extends sales ban on Heathrow short-haul tickets

The airline suspends sales for two weeks in response to the airport’s cap on passenger numbers.

Read more at: https://www.bbc.co.uk/news/business-62386909?at_medium=RSS&at_campaign=KARANGA

Uber attracts record number of drivers as cost of living bites

The ride-hailing app had been facing a driver shortage, leading to long waiting times for customers.

Read more at: https://www.bbc.co.uk/news/business-62396648?at_medium=RSS&at_campaign=KARANGA

Thousands of small firms go bust owing millions in bounce back Covid loans

While most went broke for legitimate reasons, 260 directors have been disqualified for misuse of money.

Read more at: https://www.bbc.co.uk/news/business-62338308?at_medium=RSS&at_campaign=KARANGA

How many EPS downgrades has Nifty seen this earnings season?

“Heavyweights, such as Reliance and Tata Motors, which posted weaker-than-expected performance, dragged the Nifty50 earnings,” it said, adding that Nifty50 profits, excluding Reliance Industries and Tata Motors, rose 9 percent YoY against the expectations of 6 percent growth.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/how-many-eps-downgrades-has-nifty-seen-this-earnings-season/articleshow/93298154.cms

New Sebi rules come into effect. How it may affect traders and brokers

Zerodha said that if a customer explicitly takes an F&O trade that causes their account to go into a debit resulting in a negative margin balance intraday or overnight, for example, exiting a hedged position, then the brokerage charges for orders placed during the duration where the account had negative margins, will be Rs 40 instead of Rs 20.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/new-sebi-rules-come-into-effect-how-it-may-affect-traders-and-brokers/articleshow/93299141.cms

Nomura picks stake in outperforming smallcap stock

Shares of Easy Trip Planners, which were listed on Dalal Street last year at Rs 212.25 on NSE in March last year, ended the day 3.8 percent lower at Rs 393.50. The smallcap stock which hit a 52-week low of Rs 261 in March this year has rallied around 47 per cent on a year-to-date basis.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/nomura-picks-stake-in-outperforming-smallcap-stock/articleshow/93304580.cms

Market Snapshot: Dow down nearly 300 points, Nasdaq clings to gains after Pelosi visit to Taiwan

Investors are digesting both Pelosi’s visit to Taiwan and more hawkish commentary from a pair of top Fed officials.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7106-BC671785DA52%7D&siteid=rss&rss=1

Futures Movers: Oil ends slightly higher ahead of OPEC+ meeting

Crude oil prices end higher a day ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies due Wednesday.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7106-C2B88C13ADE4%7D&siteid=rss&rss=1

Crypto: Bitcoin has already bottomed, has a fair value of $40,000, says Anthony Scaramucci

Anthony Scaramucci, founder and managing partner at SkyBridge Capital, said he believes that the worst of the crypto bear market has already passed.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7107-371A0F54075A%7D&siteid=rss&rss=1