Archives of “May 2021” month

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US Treasury Secretary Yellen said Biden’s infrastructure plan will improve the global competitiveness of US companies

  
  Analysis

Biden went for a drive in a Ford electric truck. Yellen spoke on Tuesday, US time.

Yellen was speaking at a US Chamber of Commerce event, emphasising firms will be expected to pay for some of the plan:
  • “We are confident that the investments and tax proposals in the jobs plan, taken as a package, will enhance the net profitability of our corporations and improve their global competitiveness” 
  • “We believe the corporate sector can contribute to this effort by bearing its fair share” 
  • “At the same time, we want to eliminate incentives that reward corporations for moving their operations overseas and shifting profits to low-tax countries.”
Biden went for a drive in a Ford electric truck. Yellen spoke on Tuesday, US time. 

Reports that the EU is to freeze its investment agreement with China

  
  Analysis

A report via politics website Politico, that the European Parliament is expected to pass a motion on Thursday to formally freeze the  investment agreement with China

Politico cite a draft they have seen.
More:
  • The Parliament will vote to urge that “any consideration of the EU-China Comprehensive Agreement on Investment, as well as any discussion on ratification by the European Parliament, have justifiably been frozen because the Chinese sanctions are in place.”
  • draft motion will also call on the EU to “increase coordination and cooperation” with the U.S. to deal with China, while stressing that any trade deals with Taiwan “should not be held hostage” by the deal with Beijing.
Ratification of the treaty had already been put on hold earlier this month. This will formalise the hold on ratification if it goes ahead.

 

A report via politics website Politico, that the European Parliament is expected to pass a motion on Thursday to formally freeze the  investment agreement with China

US Indices close near session lows.

  
Analysis, US Market

Major indices down for the second consecutive day

The US stocks all close near session lows. The major indices are closing lower for the second consecutive day.  We have now seen three days down, two days up and the last two days lower in the major indices.

A look at the final numbers shows:
  • S&P index -35.54 points or -0.85% at 4127.73. The high price reached 4169.15. The low price extended to 4125.99
  • Nasdaq fell -75.41 points or -0.56% at 13303.64. The high price reached 13485.34. The low extended to 13299.93
  • Dow fell -267.66 points or -0.78% at 34060.13. The high price reached 34408.99. The low extended to 34044.10.
At the highs,
  • The S&P was up 0.13%. The low point reached -0.89%
  • The NASDAQ was up 0.79%. The low point reached -0.59%
  • The Dow was up 0.24%. The low point reached -0.83%
Winners today include:
  • Snowflake, +4.95%
  • ViacomCBS, +4.56%
  • Crowdstrike, +4.36%
  • Palantir, +3.76%
  • Uber, +3.49%
  • Doordash +3.45%
  • Blackberry, +3.3%
  • Novavox, +3.16%
  • Liveperson, +2.39%
  • ARK genomic revolution, +2.04%
Losers today include:
  • Western Digital, -4.16%
  • Charles Schwab, -2.92%
  • Schlumberger, -2.91%
  • PNC -2.64%
  • Roblox, -2.55%
  • Caterpillar, -2.19%
  • Wells Fargo, -2.17%
  • whirlpool, -1.99%
  • micron, -1.89%
  • Corning, -1.83%
  • Facebook, -1.74%
  • Broadcom, -1.45%

Russian Envoy: I did not say there was a breakthrough in Iran nuclear talks

  
Analysis, Crude

Hold on a minute

The Russian envoy is now saying that he did not say there was a breakthrough in Iranian nuclear talks.  However, there was significant progress, but unresolved issues still remain.
Crude oil
The price of crude oil is trading back above the $65 level at $65.15. That still down one dollar and $0.15 or -1.72%.   It also takes price back above the 200 and 100 hour MAs at $65.16 and $65.30 respectively.

European shares close higher on the day

  
Analysis, Global Indices

Modest gains for the major indices

The European shares are closing higher on the day with modest gains:

  • German DAX, +0.1%
  • Francis CAC, flat
  • UK’s FTSE 100, +0.2%
  • Spain’s Ibex, +0.4%
  • Italy’s FTSE MIB, +0.1%
In the forex market as London/European traders look to exit, the CHF is the strongest of the majors, while the USD remains the weakest.  Although lower, the USD has moved higher off the opening North American levels. The greenback is moving to new NY session highs vs the EUR, CHF, CAD, AUD and NZD into the London close.

US April housing starts 1569K vs 1702K estimate

  
  Analysis

US housing starts and building permits for April 2021

Housing starts for April
  • prior report 1739K revised to 1733K
  • Housing Starts  1569K vs 1702K estimate, or -9.5% vs estimate of -2.1%.
  • Building permits 1760K vs 1770K estimate, or +0.3% vs 0.6% estimate
  • Single‐family housing completions in April were at a rate of 1,045,000; this is 0.1 percent (±8.4 percent)* above the revised March rate of 1,044,000
  • single-family starts 1087K vs 1255K in March
  • multi family starts 482K versus 478k last month
The numbers are somewhat of a surprise given the need for new housing (demand is clearly outstripping supply). However supply chain backlogs and higher material costs for things like lumber are putting a damper on building (at least for now).
For the full report from the US Census Bureau, CLICK HERE
Meanwhile Home Depot crushed earnings today citing unprecedented demand
  • Earnings per share: $3.86, vs. $3.08 expected
  • Revenue: $37.5 billion, vs. $34.96 billion expected

Consumers were also spending more during their visits. Average ticket rose 10.3% to $82.37.

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