Into The Vortex – EIA Reported Natural Gas Storage Added 89Bcf

EIA reported a near expected build of 89Bcf of working gas in storage which lifted Natural gas futures higher. Europe is moving aggressively to wean itself off Russian natural gas supplies with U.S. exports of liquefied natural gas expected to remain strong for some time. With the global energy crisis LNG exports continue to grow LNG feed gas volumes over 12Bcf hang near record levels despite maintenance projects. However, futures saw a sharp burst of profit taking Friday and the … Continue reading “Into The Vortex – EIA Reported Natural Gas Storage Added 89Bcf”

Market Wrap – Target in an Attack of the Dribblers Crashes Nasdaq, May 18, 2022

Yesterday the markets continued with no fear in a FOMO bear market rally despite Walmart’s biggest daily fall since 1987 and Fed chair Powell reiterated raising rates and cutting free credit. The dribblers laughed and danced as their stocks squeezed. Today Target $TGT came in for the 1-2 to close at ‎-53.67 (‎-24.93%) also the biggest daily fall since 1987 None of the Dow 30 stocks closed positive on the day, the DJIA closed down -1164.52 points or -3.57% at 31490.06. … Continue reading “Market Wrap – Target in an Attack of the Dribblers Crashes Nasdaq, May 18, 2022”

U.S. 20-year Treasury Bond Auction with High Yield of 3.29% on Higher International Demand

Treasuries have moved to their best levels of the day after the US Treasury 20-Year Bond Sale garnering a B- rating across the fixed Interest desk with strong demand from the international market. The tail was -1.4 basis points with WI level at time of the auction 2.665% and the high yield of 2.651% at the auction. The long bond maintaining its leadership with equity markets selling off. Today’s $17 bln 20-yr bond -0.2 basis point indicative of strong demand. … Continue reading “U.S. 20-year Treasury Bond Auction with High Yield of 3.29% on Higher International Demand”

The Biggest Pusher of Easy Money, Former Federal Reserve Chairman Bernanke Warns on Stagflation in New Book

What do you do you do when you are the man that espoused easy money through Quantitative Easing, took it to new levels and the bloated world you created implodes? You write a book about it of course. That’s exactly what former Federal Reserve Chairman Ben Bernanke has done and of course he warns in his new book that the United States could face simultaneous sky-high unemployment and inflation on levels not seen since the 1970s. Any mention of his … Continue reading “The Biggest Pusher of Easy Money, Former Federal Reserve Chairman Bernanke Warns on Stagflation in New Book”

Around The Barrel – Big Draws in U.S. Crude Oil and Gasoline as SPR Continues To be Emptied

The U.S. continues to drain it’s SPR which have not alleviated product shortages and the headline risk around the EU phasing out Russian oil by year end. EIA reported US Crude last week drew -3394Kbbl (incl: -2403K Draw at Cushing). Gasoline stocks drew -4779kbbl. Utilization rose -1.80% to 89.4%. Production -100k to 11,800 kbpd. East Coast diesel and heating oil inventories at fresh 32-year low (only data since 1990). The pricing hub of New York Harbor is virtually dry as … Continue reading “Around The Barrel – Big Draws in U.S. Crude Oil and Gasoline as SPR Continues To be Emptied”

Target Misses Earnings Metrics as Margins Collapse on Soaring Expenses

Retail giant Target Corporation on Wednesday reported worse than expected first-quarter earnings missing on major metrics. $TGT shares fell over 26%. Competitor Walmart reported yesterday and also sold off on its earnings miss for its largest single-day percentage decrease since 1987. Target management said fuel and freight costs will be $1 billion higher this year than it had expected, with little sign of their easing throughout 2022.  Target Corporation NYSE: TGT Reported Earnings Before Market Open Wednesday  $1.09 Missed $1.11 … Continue reading “Target Misses Earnings Metrics as Margins Collapse on Soaring Expenses”

US Mortgage Applications Slide 11% After Federal Reserve Raised Rates 50bps

The Mortgage Bankers Association showed mortgage applications in the US fell -11.0% after rising +2.0% last week. The Federal Reserve raised rates 50bps that week. The 30-year mortgage rate has been rising with yields with higher house prices in general. The purchase index slumped to its weakest level since May 2020 and the refinancing index to its lowest since January 2019.  Mortgage Bankers Association for the week ending 13 May 2022 US MBA mortgage applications w.e. 13 May -11.0% vs … Continue reading “US Mortgage Applications Slide 11% After Federal Reserve Raised Rates 50bps”

Market Wrap – Walmart Trashed as Powell Came and Went May 17, 2022

The stock markets continued with no fear in a FOMO bear market rally. All this when Walmart had it’s biggest daily fall since 1987 and Fed chair Powell reiterated raising rates and cutting free credit. Never mind, the S&P 500 rose 2.0% on Tuesday, Nasdaq Composite (+2.8%) and Russell 2000 (+3.2%) while the Dow Jones Industrial Average rose 1.3%. Total retail sales increased 0.9% month-over-month in April (consensus 1.1%) following an upwardly revised 1.4% increase (from 0.5%) in March. The … Continue reading “Market Wrap – Walmart Trashed as Powell Came and Went May 17, 2022”

Dutch Central Bank Chief First ECB Governor To Raise Prospect of 50Bps Rate Rise

A top European Central Bank official has raised the prospect of a half percentage point rate increase in July. Dutch central bank chief Klaas Knot said if inflation continues to climb then rates may need to be raised. This was the first time such an aggressive shift has been suggested. The ECB left rates unchanged as expected in April. The bank left deposit facility interest rates at -.50%. Highlights Dutch central bank chief Klaas Knot is one of the more … Continue reading “Dutch Central Bank Chief First ECB Governor To Raise Prospect of 50Bps Rate Rise”

Home Depot Delivers Record Sales and Raises Guidance and Margins

Home Improvement Retailer Home Depot was in a position to take advantage of the upsurge in construction and renovation. $HD sales rose to the highest ever for the first quarter of the year. The company is still seeing healthy demand, even in the face of rising prices and a shaky housing market and raised guidance accordingly. Earnings HD earnings per share were $4.09, up from $3.86 a year earlier. Analysts expected earnings of $3.69 a share. First-quarter sales climbed to … Continue reading “Home Depot Delivers Record Sales and Raises Guidance and Margins”