Dow surged 754 (session highs), advancers over decliners an impressive 5-1 & NAZ shot up 353. The MLP index gained 4+ to the 201s & the REIT index soared 10+ to the 415s. Junk bond funds traded higher & Treasuries ran into selling, bringing higher yields. Oil went up 1+ to 104 & gold was flattish at 1709 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
From his small office in Singapore, Kelvin Pang is ready to wager a $23M payday that the worst of the chip shortage is not over for automakers – at least in China. Pang has bought 62K microcontrollers, chips that help control a range of functions from car engines & transmissions to electric vehicle power systems & charging, which cost the original buyer $23.80 each in Germany. He's now looking to sell them to auto suppliers in the Chinese tech hub of Shenzhen for $375 apiece & says he has turned down offers for $100 each, or $6.2M for the whole bundle, which is small enough to fit in the back seat of a car & is packed for now in a warehouse in Hong Kong. "The automakers have to eat," Pang said. "We can afford to wait." He makes a living trading excess electronics inventory that would otherwise be scrapped, connecting buyers in China with sellers abroad. The global chip shortage over the past 2 years - caused by pandemic supply chaos combined with booming demand - has transformed what had been a high-volume, low-margin trade into one with the potential for wealth-spinning deal. Automotive chip order times remain long around the world, but brokers like Pang & thousands like him are focusing on China, which has become ground zero for a crunch that the rest of the industry is gradually moving beyond.
Chip shortage threatens to curb China's momentum as EV global leader
IBM (IBM) came out with quarterly EPS of $2.31,
beating the estimate of $2.29. This compares
to EPS of $2.33 per share a year ago. The figures are adjusted
for non-recurring items. This quarterly report represents a surprise of 0.9%. Last qtr, it was expected that this
technology & consulting company would post EPS of $1.34
when it actually produced EPS of $1.40, delivering a surprise of
4.5%. Over the last 4 qtrs, the company has surpassed consensus EPS estimates 3 times. The stock sank 7.27 (5%) on an earnings report that was not good enough.
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
IBM beats on earnings, but the stock is not being rewarded
Oil futures finished higher, shaking off earlier losses as
concerns over the Organization of the Petroleum Exporting Countries'
inability to significantly raise production & talk of more US
restrictions on fossil fuels created an environment for higher oil
prices. Some expectations for a bigger interest-rate hike by the ECB on Thurs led to strength in the €, pressuring the
$ & helping to boost $-denominated prices of oil. West Texas Intermediate crude for Aug rose
$1.62 (1.6%) to settle at $104.22 a barrel.
Oil prices settle higher, supported by signs of tighter supplies
Gold futures settled modestly higher, holding ground above
$1700 an ounce as the $ continued to weaken against major
currencies, but a slight rise in Treasury yields kept price gains
in check. Gold futures for Aug climbed pennies to
settle at $1710 an ounce. A big drop in the US $ index
this week is limiting selling interest in the precious metals. However,
rising Treasury bond yields this week & a wobbly crude oil market
are squelching the bulls. .
Gold ends higher, holds above $1,700 an ounce as dollar weakens
The Centers for Disease Control & Prevention's (CDC) independent advisors recommended Novavax's 2-dose Covid-19 vaccine as a primary series for adults,
one of the final steps before pharmacies can start administering the
shots. The CDC committee voted unanimously to recommend the
vaccine for people ages 18 & older after reviewing the shots' safety & effectiveness during a public meeting today. CDC
Director Dr Rochelle Walensky could give the greenlight for
vaccinations to start as soon as this week. The stock jumped 6.03 (12%%).
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
CDC panel unanimously recommends Novavax Covid-19 vaccine for adults
While today was short on drama, buyers could not be kept away. They kept coming & bidding stock prices higher. Now companies need to deliver positive earnings reports.
Dow Jones Industrials
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