Archives of “February 2021” month

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Major indices post 2 day winning streak. Amazon and Google beat on earnings. Bezos to step down from CEO role

  
Analysis, US Market
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S&P post the best day to day performance since November

The major indices closed higher for the 2nd consecutive day with solid gains across the board ahead of earnings from Amazon and Google after the close.

The final numbers are showing:
  • S&P index +52.37 points or 1.39% at 3826.24
  • NASDAQ index up 209.38 points or 1.56% at 13612.77
  • Dow industrial average rose 476.23 points or 1.58% at 30688.14

After the close, both Google and Amazon have beaten on the top and bottom lines. Alphabet shares are currently trading up 4.21% to near $2000 a share.

Alphabet had
  • revenues of $56.90 billion vs. $53.13 billion estimate
  • earnings-per-share came in at $22.30 cents vs. $15.90 cents estimate
For Amazon, CEO basis said that he will transition to role of executive chair. Andy Jassy will become the new CEO of Amazon.  Jassy is a long time Amazon employee and built AWS.  The announcement is a surprise. Amazon’s basals is to focus on new products and early initiatives according to the headline news.
Amazon shares are currently trading higher by about 1.3% and volatile trading.
For Amazon:
  • Earnings-per-share came in at $14.09 vs. $7.34 estimate
  • net sales came in at $125.56 billion vs. 119.70 billion

European shares have back-to-back gains to start the week

  
Analysis, Global Indices

Major indices price for the 2nd day this week

The European shares have back-to-back gains to start the trading week.

Yesterday, the German DAX led the way with a 1.4% gain. Below are the percentage changes from Monday.

  • German DAX, +1.4%
  • France’s CAC, +1.3%
  • UK’s FTSE 100, +1%
  • Spain’s Ibex, +0.5%
  • Italy’s FTSE MIB, +1.1%

Today, additional gains were tacked on. The provisional closes are showing

  • German DAX, +1.55%
  • France’s CAC, +1.9%

Oil breaks out to the highest in a year. What’s next

  
Analysis, Crude

WTI climbs above $55

WTI climbs above $55
Oil prices are breaking out of a sideways trade with a 2.3% rally. WTI briefly touched $55 for the first time since January 2020.
The break from the range is also a rise above the Feb 2020 high of $54.50.
oil
It comes at the start of a strong seasonal period for oil.
OPEC today lowered its 2021 oil demand growth forecast to 5.6 million bpd from 5.9 million bpd but the market is looking more at inventories, which may be quickly drawn down in the coming months.
OCED inventories will be 100 million barrels above the 5-year-average by the end of March 2021, in the forecasts. But by the end of June, they will be lower than the 5-year-average. This year stockpiles will be drawn down each month and fall a total of 406m barrels under the base case.
I believe that oil and oil companies are among the most undervalued assets in the world. The transition to green energy is coming but it will take decades and the lack of investment in oil production is going to cause much higher prices within 2 years.
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