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Top Stock Market News For Today May 5, 2022

Stock futures edging lower as Fed reels in aggressive interest rate hiking plans
The post Top Stock Market News For Today May 5, 2022 appeared first on…



Stock Market Futures Edges Lower Following Latest Fed Policy Update

U.S. stock futures are edging lower heading into Thursday’s trading session. By and large, it seems that investors are still digesting the points from Fed Chair Jerome Powell’s latest press conference. For starters, the Federal Reserve is raising the short-term interest rate by 0.50%. While this would mark the largest rate hike since May 2000, it would serve to mitigate inflationary pressure on consumers now. Additionally, the central bank is focusing on further raising interest rates while trimming its almost $9 trillion balance sheet.

To help investors better understand the current situation is BlackRock’s (NYSE: BLK) chief investment officer of global fixed income, Rick Rieder. He writes, “In all policy moves, there are negative consequences, which hopefully are muted, and are less impactful than the issue that is being addressed, and today that issue is inflation.” Rieder continues, “There are many factors out of the Fed’s control (supply chain disruptions and geopolitics, for instance), but we’ll be watching closely to see how the Fed’s tightening of financial conditions impacts the broad economy and employment levels, which are very firm today but can clearly soften alongside of aggressive inflation-fighting monetary policy.

In the larger scheme of things, it would not surprise me to see investors taking more defensive or cautious positions now. Regardless, today remains another day full of notable earnings to keep up with as well. As of 4:45 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 0.56%, 0.80%, and 1.06% respectively.

Twilio In Focus After Topping Earnings Estimates In Fourth Fiscal Quarter Financial Report

On the earnings front today, Twilio (NASDAQ: TWLO) seems to be among the top tech stocks to watch. Namely, the company posted overall solid figures in its fourth-fiscal quarter update after yesterday’s closing bell. Diving in, Twilio broke even in terms of earnings per share, handily beating estimates of a $0.21 per share loss. Furthermore, the company raked in a total revenue of $875.4 million, also above Wall Street projections of $863.81 million. Year-over-year, this adds up to a commendable 48% year-over-year jump. Also, Twilio’s revenue dollar-based net expansion rate (RDNER) is up by 126% over the same period. All of this contributes to a rather good year for the company in the larger scheme of things.

For the fiscal year, Twilio’s total revenue came in at $2.84 billion, representing a sizable 61% year-over-year increase. Moreover, the company saw its RDNER surge by 131% over the previous fiscal year. Commenting on the company’s latest performance is CEO Jeff Lawson. He notes, “The combination of our leading cloud communications platform with Twilio Segment’s #1 customer data platform gives Twilio an unparalleled view into the customer journey, and I’ve never been more excited about the future of the company than I am today.” As more workspaces opt for hybrid arrangements, demand for Twilio’s services could, in theory, persist. Because of this, I could see TWLO stock gaining attention in the stock market today.

TWLO stock
Source: TradingView

CVS Stock Gains Following Stronger-Than-Expected Earnings Figures, Raises Annual Earnings Outlook

At the same time, CVS Health (NYSE: CVS) is also receiving similar attention right now. In its latest financial release, the company saw earnings of $2.22 on revenue of $76.83 billion for the quarter. For reference, this is versus consensus forecasts of $2.15 and $75.39 billion. Notably, CVS says that this is thanks to a growing demand for its prescriptions and non-Covid-related offerings across the board. This is apparent as the company’s same-store sales are up by 10.7% year-over-year. In particular, CVS’s pharmacy and front store segments are seeing year-over-year same-store sales gains of 10.1% and 13.2% respectively.

In detail, CVS notes that its bid to attract new customers, greater prescription filling volume, and more seasonal illness-related spending are key contributors to its current momentum. However, CVS is seeing a deceleration in sales relating to Covid vaccines and testing for the quarter. Nevertheless, the company seems to be confident about its ability to further diversify beyond Covid-related health care solutions. To accomplish this, CVS has and continues to introduce more services to its retail locations. This includes but is not limited to health insurance and in-house medical consultation offerings. Moreover, CVS is also raising its full-year earnings outlook to a range of $8.20 to $8.40 from a previous guidance of $8.10 to $8.30. All this alongside the incoming wave of fourth vaccination shots could put CVS stock in the limelight today.

CVS stock
Source: TradingView

Block Earnings On Tap After Closing Bell: What To Know

Block (NYSE: SQ) will be reporting its latest quarterly financials after today’s closing bell. As it stands, Wall Street is expecting earnings of $0.19 per share and a total revenue of $4.2 billion. Another core metric to note would be Block’s gross payment volume (GPV). The likes of which analysts are forecasting will come in at about $44.6 billion. On the whole, this would represent noticeably year-over-year declines for Block on the revenue and earnings per share fronts. In fact, current projections are pointing towards the company’s first revenue decline in four years. This would be understandable with demand for its Square fintech ecosystem declining from pandemic-era highs.

More importantly, investors should also note that GPV estimates for Block suggest healthy growth for its core financial services. Should the company report a GPV of $44.6 billion, it would add up to a gain of 34% year-over-year. Worth noting, Block has been and still is working on expanding its payments ecosystem toward a larger audience. This includes efforts to cater to small-and-medium enterprises, bolstering services from its acquisitions, and optimizing its Cash App peer-to-peer payments platform. Nonetheless, SQ stock could be worth keeping an eye on after today’s opening bell. 

SQ stock
Source: TradingView

Other Hot Earnings To Consider In The Stock Market Today

Speaking of earnings, here are more major players stepping up to the plate for their latest earnings calls today. In the pre-market, we have Shopify (NYSE: SHOP), Penn National Gaming (NASDAQ: PENN), Crocs (NASDAQ: CROX), DataDog (NASDAQ: DDOG), Royal Caribbean Cruises (NYSE: RCL), and Wayfair (NYSE: W) on tap. Not to mention, crude oil giant ConocoPhillips (NYSE: COP) will also be reporting earnings at the same time.

Alternatively, the likes of FuboTV (NYSE: FUBO), Lucid Motors (NASDAQ: LCID), Cloudflare (NYSE: NET), Opendoor Technologies (NASDAQ: OPEN), and MercadoLibre (NASDAQ: MELI) are announcing financials in the post-market hours. Other notable firms to consider at this time slot would be Virgin Galactic (NYSE: SPCE) and DoorDash (NYSE: DASH). Pair all this with monetary policy updates and investors certainly have another busy day ahead in the stock market now.

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The post Top Stock Market News For Today May 5, 2022 appeared first on Stock Market News, Quotes, Charts and Financial Information |

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China Suggests It Could Maintain ‘Zero COVID’ Policy For 5 Years

China Suggests It Could Maintain ‘Zero COVID’ Policy For 5 Years

Authored by Paul Joseph Watson via Summit News,

China has suggested it will…



China Suggests It Could Maintain 'Zero COVID' Policy For 5 Years

Authored by Paul Joseph Watson via Summit News,

China has suggested it will maintain its controversial ‘zero COVID’ policy for at least 5 years, eschewing natural immunity and guaranteeing repeated rounds of new lockdowns.

“In the next five years, Beijing will unremittingly grasp the normalization of epidemic prevention and control,” said a story published by Beijing Daily.

The article quoted Cai Qi, the Communist Party of China’s secretary in Beijing and a former mayor of the city, who said that ‘zero COVID’ approach would remain in place for 5 years.

After the story prompted alarm, reference to “five years” was removed from the piece and the hashtag related to it was censored by social media giant Weibo.

“Monday’s announcement and the subsequent amendment sparked anger and confusion among Beijing residents online,” reports the Guardian.

“Most commenters appeared unsurprised at the prospect of the system continuing for another half-decade, but few were supportive of the idea.”

Although western experts severely doubt official numbers coming out of China, Beijing claimed success in limiting COVID deaths by enforcing the policy throughout 2021.

However, this meant that China never achieved anything like herd immunity, and at one stage the Omicron variant caused more more coronavirus cases in Shanghai in four weeks than in the previous two years of the entire pandemic.

Back in May, World Health Organization Director General Tedros Adhanom Ghebreyesus suggested that China would be better off if it abandoned the policy, but Beijing refused to budge.

As we previously highlighted, the only way of enforcing a ‘zero COVID’ policy is via brutal authoritarianism.

In Shanghai, children were separated from their parents in quarantine facilities and others were left without urgent treatment like kidney dialysis.

Panic buying of food also became a common occurrence as the anger threatened to spill over into widespread civil unrest.

Former UK government COVID-19 advisor Neil Ferguson previously admitted that he thought “we couldn’t get away with” imposing Communist Chinese-style lockdowns in Europe because they were too draconian, and yet it happened anyway.

“It’s a communist one party state, we said. We couldn’t get away with it in Europe, we thought,” said Ferguson.

“And then Italy did it. And we realised we could,” he added.

*  *  *

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Tyler Durden Tue, 06/28/2022 - 18:05

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No sign of major crude oil price decline any time soon

Bullish pressure on crude oil markets doesn’t seem to be easing Crude oil prices fell last week, notching their second weekly decline in the face of…




Bullish pressure on crude oil markets doesn’t seem to be easing

Crude oil prices fell last week, notching their second weekly decline in the face of concern that rising interest rates could push the global economy into recession.

Yet the future of crude oil still seems bullish to many. Spare capacity, or lack of it, is just one of the reasons.

The global surplus of crude production capacity in May was less than half the 2021 average, the U.S. Energy Information Administration (EIA) reported on Friday.

The EIA estimated that as of May, producers in nations not members of the Organization of Petroleum Exporting Countries (OPEC) had about 280,000 barrels per day (bpd) of surplus capacity, down sharply from 1.4 million bpd in 2021. It said 60 per cent of the May 2021 figure was from Russia, which is increasingly under sanctions related to its invasion of Ukraine.

The OPEC+ alliance of oil producers is running out of capacity to pump crude, and that includes its most significant member, Saudi Arabia, Nigerian Minister of State for Petroleum Resources Timipre Sylva told Bloomberg last week.

“Some people believe the prices to be a little bit on the high side and expect us to pump a little bit more, but at this moment there is really little additional capacity,” Sylva said in a briefing with reporters on Friday. “Even Saudi Arabia, Russia, of course, Russia, is out of the market now more or less.” Nigeria was also unable to fulfil its output obligations, added Sylva.

Recent COVID-19-related lockdowns in parts of China – the world’s largest crude importer – also played a significant role in the global oil dynamics. The lack of Chinese oil consumption due to the lockdowns helped keep the markets in a check – somewhat.

Oil prices haven’t peaked yet because Chinese demand has yet to return to normal, a United Arab Emirates official told a conference in Jordan early this month. “If we continue consuming, with the pace of consumption we have, we are nowhere near the peak because China is not back yet,” UAE Energy Minister Suhail Al-Mazrouei said. “China will come with more consumption.”

Al-Mazrouei warned that without more investment across the globe, OPEC and its allies can’t guarantee sufficient supplies of oil as demand fully recovers from the pandemic.

But the check on the Chinese crude consumption seems to be easing.

On Saturday, Beijing, a city of 21 million-plus people, announced that primary and secondary schools would resume in-person classes. And as life seemed to return to normal, the Universal Beijing Resort, which was closed for nearly two months, reopened on Saturday.

Chinese economic hub Shanghai, with a population of 28 million-plus people, also declared victory over COVID after reporting zero new local cases for the first time in two months.

The two major cities were among several places in China that implemented curbs to stop the spread of the omicron wave from March to May.

But the easing of sanctions should mean oil’s price trajectory will resume its upward march.

In the meantime, in the U.S., the Biden administration is eying tougher anti-smog requirements. According to Bloomberg, that could negatively impact drilling across parts of the Permian Basin, which straddles Texas and New Mexico and is the world’s biggest oil field.

While the world is looking for clues about what the loss of supply from Russia will mean, reports are pouring in that the ongoing political turmoil in Libya could plague its oil output throughout the year.

The return of blockades on oilfields and export terminals amid renewed political tension is depriving the market of some of Libya’s oil at a time of tight global supply, said Tsvetana Paraskova in a piece for

And in the ongoing political push to strangle Russian energy output, the G7 was reportedly discussing a price cap on oil imports from Russia. Western countries are increasingly frustrated that their efforts to squeeze out Russian energy supplies from the markets have had the counterproductive effect of driving up the global crude price, which is leading to Russia earning more money for its war chest.

To tackle the issue, and increase pressure on Russia, U.S. Treasury Secretary Janet Yellen is proposing a price cap on Russian crude oil sales. The idea is to lift the sanction on insurance for Russian crude cargo for countries that accept buying Russian oil at an agreed maximum price. Her proposal is aimed at squeezing Russian crude out of the market as much as possible.

So the bullish pressure on crude oil markets doesn’t seem to be easing.

By Rashid Husain Syed

Toronto-based Rashid Husain Syed is a respected energy and political analyst. The Middle East is his area of focus. As well as writing for major local and global newspapers, Rashid is also a regular speaker at major international conferences. He has provided his perspective on global energy issues to the Department of Energy in Washington and the International Energy Agency in Paris.

Courtesy of Troy Media

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WTI Extends Gains After Unexpected Crude Draw

WTI Extends Gains After Unexpected Crude Draw

Oil prices are higher today following relatively positive news from China (easing some of its…



WTI Extends Gains After Unexpected Crude Draw

Oil prices are higher today following relatively positive news from China (easing some of its COVID quarantine restrictions), Macron-inspired doubts over the ability of Saudi Arabia and the United Arab Emirates to significantly boost output, and unrest in Ecuador and Libya helped lift prices.

“We’re in the crunch period, it’s hard to see any meaningful price relief for crude,” said John Kilduff.

There’s a lot of strength with China relaxing its Covid restrictions and starting its independent refiners, “we’re going to have another chunk of demand for crude oil,” as China relaxes its Covid-19 restrictions.

With no EIA data released last week due to a "systems issue" (they have issued a statement confirming that the data - and the newest data - will both be released tomorrow), the only guidance we have for now on the past week's inventory changes is from API...

API (last week)

  • Crude +5.607mm

  • Cushing -390k

  • Gasoline +1.216mm - first build since March

  • Distillates -1.656mm

API (this week)

  • Crude -3.799mm

  • Cushing -650k

  • Gasoline +2.852mm

  • Distillates +2.613mm

Crude stocks unexpectedly fell last week, almost erasing the major build from the week before (according to API). Gasoline stocks rose for the second straight week

Source: Bloomberg

WTI was hovering around $111.75 and pushed up to $112 after the unexpected crude draw...

Finally, we note that the tight supply situation in oil (especially European) is revealing itself in the WTI-Brent spread, grew to $6.19, the widest in almost three months.

“European demand will remain robust, especially as natural gas supplies run out, while the North American demand for crude is weakening,” said Ed Moya, senior market analyst at Oanda.

This is not good news for President Biden as prices are rising...

And his ratings are hitting record lows.

Tyler Durden Tue, 06/28/2022 - 16:37

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