Saturday, 18 November 2023

Special Update 18/11/2023 In Stocks, FOMO’s Back. Oil Rebounds.

 Baltic Dry Index. 1820 +62         Brent Crude 80.61

Spot Gold 1981              U S 2 Year Yield 4.88 +0.05   

November 18, 1916. The Battle of the Somme ends.

The Battle of the Somme was one of the largest and most well-known battles of World War I. It lasted from 1st July to 18th November 1916 on the banks of the Somme River, in France. It was also one of the bloodiest battles of the war, or of any war before or since.

On 18 November 1916, with the weather deteriorating, Haig shut down the offensive. The Allies had only advanced seven miles (12 km) and there was still no breakthrough in sight.

The British Empire had suffered 420,000 casualties and the French 200,000 in the process. German losses were at least 450,000 killed and wounded.

In the stock casinos, Fear Of Missing Out is back.

Who cares we have two murderous wars raging; that most corporations must roll over debt from roughly two percent interest to roughly five percent interest.

That US commercial real estate is in deep and rising crisis, with CRE loan defaults now just starting to impact regional and local banks.

Who cares that student loan defaults are rising, as are non performing auto loans, plus rising non performing credit card debt.

Those are all problems for another day. After all, Fed Chairman Powell and the Fedsters are just about to bring out the punchbowl again, right?

 

Wall St Week Ahead: After breathtaking surge, US stocks' path may rest on economic soft landing

By Lewis Krauskopf 

NEW YORK, Nov 17 (Reuters) - Are U.S. stocks poised to continue their dramatic run, or is a pause ahead? That’s the question investors are asking as the S&P 500 heads into the close of the year with fresh highs coming into view.

Signs of cooling inflation have fueled hopes that the Federal Reserve is done raising interest rates, helping extend a rally that has seen the S&P 500 (.SPX) gain over 9% since late October. The index is now up nearly 18% for the year and less than 2% away from its year-high, reached in July. Its record closing level, from January 2022, is some 6% away.

Whether it can reach those levels in coming weeks depends in-part on how convinced investors are that the U.S. economy is on track for a so-called soft landing, where the Fed brings down inflation without badly damaging growth. So far, the economy has proven resilient in the face of tighter monetary policy, though some measures of employment and consumer demand have softened.

Rising valuations and still-elevated Treasury yields pose another obstacle. Other factors, however, including historical seasonal trends, could support more gains.

“We have this balance right now between a lower inflation outlook and a better interest rate trajectory ... juxtaposed against a slowing economy,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management.

Investor optimism on equities has grown over the last few weeks, as markets rebounded from a months-long drop that ran from August through much of October. Stock exposure by active investment managers has shot to its highest level since August, from a one-year low hit last month, the National 

Association of Active Investment Managers exposure index showed.

U.S. equity funds drew about $9.33 billion in net inflows in the week to Nov. 15, the largest weekly net purchase since Sept. 13, according to LSEG data.


Treasury yields, whose steady rise over the last few months has weighed on stocks, have rapidly retreated: the benchmark 10-year Treasury yield stood at 4.43% early Friday, from a 16-year high of just above 5% last month. Yields move inversely to bond prices.

----Seasonality is also in stocks' favor: November and December have posted the year's second- and third-biggest monthly returns since 1950, rising 1.5% and 1.4% on average, according to the Stock Trader's Almanac.

Equities face a number of tests next week. Chip heavyweight Nvidia (NVDA.O) reports quarterly results on Tuesday, the last report this earnings season from the "Magnificent Seven" megacap companies, whose massive share price gains led equity indexes higher this year.

The health of the consumer-driven economy comes into view with Black Friday, the day after Thanksgiving that is the traditional start of U.S. holiday shopping. Data on Wednesday showed U.S. retail sales fell for the first time in seven months in October.

One source of worry has been a renewed climb in stocks' valuations. The S&P 500 trades at 18.7 times forward 12-months earnings estimates, a roughly two-month high and well above its long-term average of 15.6, according to LSEG Datastream.

More

Wall St Week Ahead: After breathtaking surge, US stocks' path may rest on economic soft landing | Reuters

Tech stocks wrap up strongest three-week rally since early days of Covid in April 2020

Tech investors are marching towards Thanksgiving with plenty of holiday cheer.

The Nasdaq rose 2.4% this week, bringing its three-week gains to 12%. It’s the strongest rally over that amount of time since April 2020, when early Covid stay-at-home requirements led to a surge in e-commerce and cloud software stocks.

Intel was the biggest winner among large-cap tech stops this week, climbing 13%. Shares of the chipmaker are now up 35% since Oct. 26, when the company reported better-than-expected profit and sales, bolstered by stronger demand for PCs.

Analysts at Mizuho Securities lifted their rating on Intel to buy from neutral this week, citing a renewed emphasis on the company’s data center business and an encouraging customer pipeline, which could drive up “share gains and improve margins.”

Semiconductors will be the primary area of focus next week for tech investors, as Nvidia is scheduled to report results on Tuesday. The stock has jumped 22% in the past three weeks, bringing its gains for the year to 237%, far surpassing all other members of the S&P 500.

Nvidia has been the biggest beneficiary of the boom in generative artificial intelligence, providing the graphics processing units (GPUs) to handle the powerful workload requirements. In its earnings report next week, the company is expected to show revenue growth of over 170% for the third quarter, and for the fourth quarter analysts are expecting Nvidia’s forecast to suggest growth of close to 200%, according to LSEG, formerly known as Refinitiv.

-----The tech sector tends to be one of the most sensitive when it comes to interest rates, because low borrowing costs encourage risk, while higher rates push investors into assets deemed safer.

The broader market got a boost this week from tame U.S. inflation data. The Consumer Price Index (CPI), was flat in October from a month earlier, while economists polled by Dow Jones expected a gain of 0.1%. The numbers fueled further optimism that the Fed’s rate-hiking campaign is over.

Following Intel, Tesla was the next-biggest large-cap gainer this week, with shares of the electric vehicle company climbing 9.2%. Investors shrugged off comments by CEO Elon Musk, who said on his social media site X that he agreed with a post accusing “Jewish communities” of pushing “hatred against whites.”

Regarding Musk’s post, White House spokesman Andrew Bates said in a statement that, “We condemn this abhorrent promotion of Antisemitic and racist hate in the strongest terms, which runs against our core values as Americans.”

Tech stocks wrap up strongest three-week rally since April 2020 (cnbc.com)

European shares end the week higher as bond yields slide on rate cut bets

By Ankika Biswas and Bansari Mayur Kamdar

Nov 17 (Reuters) - European shares rose on Friday, boosted by financials and healthcare, ending the week higher on growing optimism that central banks will aggressively cut interest rates next year.

The pan-European STOXX 600 (.STOXX) rose 1.0%, ending the week 2.8% higher, as bond yields fell.

 

German government bond yields hit their lowest in more than two months, with money markets fully pricing in 100 basis point rate cuts by the European Central Bank by end-2024.

"When you've got growth slowing in the U.S., that's increasing expectations that central banks around the world will be likely to follow suit," said Giles Coghlan, chief market analyst at brokerage GCFX.

"With Europe's growth prospects looking bleak, markets are only naturally starting to look for rate cuts."

New data confirmed year-on-year inflation slowed sharply in the euro zone in October.

However, investors remained cautious about the impact of past rate hikes on economic growth and company earnings.

ECB policymaker Robert Holzmann repeated that the central bank must stand ready to raise interest rates again if necessary, and said he did not expect the ECB to start cutting rates in the second quarter as some think it will.

Fresh data showed British retail sales volumes fell unexpectedly in October, in a new warning sign for the economy.

 

Rate-sensitive real estate stocks (.SX86P) rose 1.7%.

 

Miners (.SXPP) were the top sectoral performers for the day and the week, lifted by firm copper prices as the U.S. dollar weakened.

More

European shares end the week higher as bond yields slide on rate cut bets | Reuters

 

But it’s not boom times for all.

Volvo shares tumble 14% to record low as Chinese owner Geely sells off stock

Volvo Cars shares tumbled as much as 14% on Friday morning after its parent company Zhejiang Geely Holding Group began a sale of around 100 million shares of the Swedish carmaker.

Shares of Volvo provisionally closed the session down 11% after trimming some losses. The stock price had fallen by as much as 14% earlier in the day and hit a record low, according to Reuters data.

Volvo shares are down 25% year to date.

Geely said in a statement earlier on Friday that it would release further shares of Volvo, which was in line with its long-term strategy.

It said the move was designed to increase liquidity of Volvo and “offer more opportunities to generate sustainable long-term value for institutional and retail investors.”

Geely will still hold 78.7% of Volvo shares following the sale, the statement said. Geely previously owned around 82% of Volvo, putting the sold shares at over 3%.

The holdings were sold at a significant discount and the sale totaled around $350 million, Reuters reported.

More

Volvo shares tumble to record low as parent company sells shares (cnbc.com)

More student loan borrowers are walking away from their debt in bankruptcy, Biden administration says

More people with federal student loans have been able to walk away from their debt in bankruptcy court due to a Biden administration policy change announced last November.

In the fall of 2022, the U.S. Department of Education and the U.S. Department of Justice released updated bankruptcy guidelines to make it easier for struggling borrowers to get their student loans erased in court. Previously, it was difficult, if not impossible, for people to part with their education debt in a normal bankruptcy proceeding.

“I am thrilled that our one-year review indicates that our efforts have made a real difference in borrowers’ lives,” said Associate Attorney General Vanita Gupta, in a statement Thursday.

In the first 10 months of the new policy, student loan borrowers filed more than 630 bankruptcy cases, a “significant increase” from recent years, the departments said.

“The vast majority of borrowers seeking discharge have received full or partial discharges,” they said.

Outstanding student debt in the U.S. exceeds $1.7 trillion, and around 7% of student loan borrowers have a balance of more than $100,000. Even before the Covid-19 pandemic, some 10 million borrowers were in delinquency or default.

More

More student loan borrowers walk away from their debt in bankruptcy (cnbc.com)

Global Inflation/Stagflation/Recession Watch.   

Given our Magic Money Tree central banksters and our spendthrift politicians,  inflation/recession now needs an entire section of its own.

Goldie, Morgan Stanley, UBS, Wells Fargo and Barclays make guesses of the economic future. None, of course, say panic now!

Global economy to slow down but likely avoid recession in 2024

Nov 16 (Reuters) - Some of the major banks in the world expect global economic growth to slow further in 2024, squeezed by elevated interest rates, higher energy prices and a slowdown in the world's two largest economies.

The global economy is forecast to grow 2.9% this year, a Reuters poll showed, with next year's growth seen slowing to 2.6%.

 

Most economists expect the global economy to avoid a recession, but have flagged possibilities of "mild recessions" in Europe and the UK.

A soft-landing for the United States is still on the cards, although uncertainty around the Federal Reserve's monetary tightening path clouds the outlook. China's growth is seen weakening, exacerbated by companies seeking alternative cost-efficient production destinations.

Following are forecasts from major global banks

More, tables and tables of predictions for 2024 on the global economy and US, China, EU, UK and Indian economies. Worth a click.

Global economy to slow down but likely avoid recession in 2024 | Reuters

Covid-19 Corner

This section will continue until it becomes unneeded.

Hmm. Did the US fund SARS-Cov-2 and cover it up?

New Email Shows Fauci Adviser Suggesting He Destroyed Records

Dr. David Morens sent the email to a group including a scientist who funneled money to a laboratory in China.

11/16/2023 Updated: 11/16/2023

New Email Shows Fauci Adviser Suggesting He Destroyed Records | The Epoch Times

A top deputy to Dr. Anthony Fauci indicated in a newly uncovered email that he purposefully did not keep records that he knew would be sought by the public and congressional investigators.

"I have retained very few emails or documents on these matters, and continue to request that correspondence on sensitive issues be sent to me at my gmail [sic] address," Dr. David Morens, the deputy, wrote in the June 17, 2021, missive.

Sen. Ron Johnson (R-Wis.) obtained the email and included it in a letter to Health Secretary Xavier Becerra.

Dr. Morens wrote to colleagues after senators, including Mr. Johnson, wrote to then-National Institutes of Health (NIH) Director Dr. Francis Collins asking for documents on how the NIH handled the COVID-19 pandemic, which started in a city that features a laboratory that ran risky tests with funds from the NIH.

"Based on this email, it appears that Dr. Morens may have intentionally deleted or destroyed records relating to the origins of COVID-19 given his admission that he has 'retained very few emails or documents on these matters," Mr. Johnson told Mr. Becerra. "Further, Dr. Morens' stated preference to receive correspondence on 'sensitive issues' through Gmail shows an apparent evasion of federal record keeping requirements and a complete disregard for transparency."

The Department of Health and Human Services, which includes the NIH, has repeatedly failed to hand over records that Mr. Johnson has requested, the senator noted. Dr. Morens' apparent actions "may have directly obstructed my oversight efforts," he wrote.

Mr. Johnson asked for all the records he has asked for as well as an outline of how federal officials will hold Dr. Morens accountable.

Mr. Becerra's agency did not respond to a request for comment.

Dr. Morens has not responded to inquiries.

Dr. Morens is the senior adviser to the director at the National Institute of Allergy and Infectious Diseases, an NIH institute that was headed until late 2022 by Dr. Fauci. Dr. Morens has worked for the agency for more than two decades.

Dr. Morens was writing to others who were part of the American Society of Tropical Medicine & Hygiene (AJTMH), including Dr. Peter Daszak, whose EcoHealth Alliance group helped funnel money from the NIH to the Wuhan laboratory.

---- In a missive obtained previously by the U.S. House of Representatives panel investigating the pandemic, Dr. Morens wrote to a group of scientists that "I try to always communicate on gmail [sic] because my NIH email is FOIA'd constantly."

Under the Freedom of Information Act (FOIA), members of the public can request information like emails from the federal government.

Dr. Morens disclosed in the July 9, 2021, email that his Gmail had been hacked and "until IT can get it fixed I may have to occasionally email from my NIH account."

"Don't worry, just sent to any of my addresses and I will delete anything I don't want to see in the New York Times," he also wrote.

Michael Chamberlain, director of the watchdog Protect the Public’s Trust, told The Epoch Times in an email that the missive showed "a pretty brazen effort to avoid public records requirements."

More

New Email Shows Fauci Adviser Suggesting He Destroyed Records | The Epoch Times

Technology Update.

With events happening fast in the development of solar power and graphene, I’ve added this section.

This weekend, something a little different. The world’s most unusual clock.

This Astronomical Clock Tower Tells Wonders of the Universe—And an Amazing Thing Happens at Noon

11/15/2023 Updated: 11/15/2023

Hidden away in a pretty Belgian town is an extraordinarily beautiful and curious clock tower. Donated to the town by autodidact Louis Zimmer, it sits in the wall of a large tower and features no less than ten faces and two globes arranged around a central clock, decorated in blue and gold.

The best time to visit one of the world’s most impressive clock towers is at noon. Not only does this spectacular creation in the town of Lier show everything from moon phases and the zodiac to tidal movement and the time on different continents, but when the regular clock strikes 12, something fun happens.

Like a more sophisticated version of a cuckoo clock, a carousel pops out of a door, revealing a procession of Belgian kings, mayors of the town, and coats of arms intended as an ode to history. Above this are four moving automatons representing the four stages of life, in the form of characters from Belgian fame and folklore.

Mr. Zimmer, a local watchmaker who became clockmaker to the king of Belgium, was a strong royalist. After developing a fascination with astronomy, he embarked on a five-year project to construct his jubilee clock. Presented to Lier in 1930 to mark 100 years of Belgian independence, Mr. Zimmer also intended to introduce the world to the wonders of astronomy with his creation.

Also known as the Centenary Clock, Mr. Zimmer’s creation sits in the ancient stone wall of a medieval tower, dominating the little town square. Residents and visitors can sit outside a café and muse upon the wealth of information it displays, including complex concepts such as the equation of time: the difference in time as measured by the sun and our clocks, which are not equal; and the current year of the solar cycle.

A large globe rotates once every 24 hours; the visible part shows which part of Earth is experiencing day at any one time. Grand symbology corresponding to gods and goddesses is used to depict the seven days of the week, with another clock dial marking the month. Charming illustrations inscribed into a separate dial indicate the four seasons of spring, summer, autumn, and winter. The care Mr. Zimmer took to add incredible detail and precision to his work is evidenced in his use of Arabic numerals to state the amount of days in a particular season, and hours in Roman numerals.

More

This Astronomical Clock Tower Tells Wonders of the Universe—And an Amazing Thing Happens at Noon | The Epoch Times

This weekend’s music diversion. Time for some Handel harp brilliance. Approx. 8 minutes.

Handel Harp Concerto

Handel Harp Concerto - YouTube

This weekend’s chess update. Approx. 11 minutes.

Greatest Queen Sacrifice of 2023!?

Greatest Queen Sacrifice of 2023!? - YouTube

No weekend the math’s update this week. This week, Soybeans in the USA, Soyabeans nearly everywhere else. Approx. 13 minutes.

Why The U.S. Is Now Obsessed With Soybeans

Why The U.S. Is Now Obsessed With Soybeans - YouTube

"When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!"

President Trump.

 

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