Dow dropped 199 (at session lows), decliners over advancers about 2-1 & NAZ was off 11. The MLP index fell a fraction to the 225s & the REIT index was off 2+ to the 363s. Junk bond funds fluctuated & Treasuries were up a tad, hardly enough to affect yields. Oil added a fraction to 72 & gold went up 8 to 1978 (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)
General Motors (GM) is investing another $1B in 2 plants, to prepare the sites to produce the next-generation internal combustion engine (ICE) heavy-duty trucks. "These
investments reflect our commitment to our loyal truck customers and the
efforts of the dedicated employees of Flint Assembly and Flint Metal
Center," Gerald Johnson, GM's exec VP of global
manufacturing & sustainability, said. The latest announcement brings the company's US
manufacturing & parts distribution facility investment commitments to
more than $30B since 2013. Meanwhile, the automaker is also investing heavily in its electric vehicle battery supply chain in North America. GM & South Korea's Posco Future M announced Fri that the firms are
spending another $1B combined to expand their joint partnership,
Ultium CAM. Ultium CAM was launched last year with a $327M investment to build a chemical battery materials plant in Canada to produce Cathode Active Material (CAM), which is expected to be operational in 2025. The expansion announced last week is the 2nd phase of the venture & includes a 2nd CAM facility along with a facility for on-site
processing Precursor CAM (pCAM). Site selection has not yet been
announced. GM is looking to expand its EV capacity in North America with 4 US
battery cell joint venture plants. The Ultium CAM venture is expected to
support the production of roughly 360K GM EVs annually in 2025-2030. The stock was off 10¢.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM_aid=CD3289&a_bid=6aeoso5b6f7
GM investing more than $1B in Michigan plants to boost heavy-duty truck production
US gas prices could soon rise after Saudi Arabia's decision to cut oil production by 1M barrels a day. According to AAA, drivers are currently paying an average of $3.55 for a gallon of regular gasoline, more than $1 lower than a year ago. Patrick De Haan, GasBuddy's head of petroleum analysis, said oil prices could rally due to production cuts & push gasoline prices higher as early as mid-week. "How long any rise in gas prices lasts is up in the air, but I do not yet believe motorists need to be worried," he said. "Any rise in average prices should be fairly small, and we’re still extremely unlikely to make a run at record prices anytime soon." Saudi Arabia announced yesterday that it would reduce oil production to 9M barrels per day in Jul from 10M barrels per day in May. The voluntary cut is on top of a broader deal by OPEC+ to limit supply into 2024 as the OPEC+ producer group seeks to boost flagging oil prices. "This is a Saudi lollipop," Saudi Energy Minister Prince Abdulaziz said. "We wanted to ice the cake. We always want to add suspense. We don't want people to try to predict what we do... This market needs stabilization." OPEC+ pumps about 40% of the world's crude & has cut its output target by a total of 3.66M bpd, amounting to 3.6% of global demand, including 2M bpd agreed last year & voluntary cuts of 1.66M bpd agreed in Apr. Meanwhile, OPEC+ agreed over the weekend to slash its overall production goals by 1.4M barrels per day.
Gas prices could spike after Saudi Arabia oil production cut
Intel (INTC) shares fell as Apple (AAPL), both Dow stocks, said an upcoming Mac Pro computer will include a new homemade chip, representing the completion of the company's effort to bring its own processors to its entire PC lineup. The M2 Ultra, which will power the new computer, is up to 3 times faster than the speediest Intel-based Mac Pro. At Apple's Worldwide Developer Conference, Jennifer Munn, director of engineering program management, called the M2 Ultra “a monster of a chip.” AAPL silicon is “a different kind of competition,” former INTC exec Gregory Bryant said at a 2021 Evercore conference. “It really wasn’t as much of the silicon as it was about the developer ecosystem and unifying this base of developers and applications that they have on the iPhone and the iPad and bring it to the Mac. So I think that was inevitable.” The Mac Pro containing the new chip will come with 192 GB of memory & the computer will start at $6999.
INTC fell 1.42.
If you would like to learn more about INTC, click on this link:
club.ino.com/trend/analysis/stock/INTC_aid=CD3289&a_bid=6aeoso5b6f7
AAPL was off 1.71.
If you would like to learn more about AAPL, click on this link:
club.ino.com/trend/analysis/stock/AAPL_aid=CD3289&a_bid=6aeoso5b6f7
Intel drops as Apple moves to its own silicon on all computers
Gold futures finished higher, giving up early gains, after data showed that US businesses grew at a slower pace in May. With Federal Reserve officials now in their pre-policy decision blackout for speaking in public, financial markets are left to focus on data alone, and today's ISM survey reads very badly. The Institute for Supply Management's (ISM) index of service-oriented businesses fell to 50.3% in May from 51.9%. Gold continues to mirror both the $ & expectations for Fed interest rates very closely, so the US services sector data has seen the precious metal reverse Fri's jobs data slump as betting that the Fed will raise rates in 2 weeks has evaporated. Gold for Aug climbed $4 to settle at $1974 an ounce
Gold Futures End Higher After Fall in ISM Services Index Reading
Oil futures climbed, with US benchmark prices settling at their highest since May 26. Saudi Arabia agreed to voluntarily cut its oil production level by 1M barrels a day in Jul. Spurring a bout of short-covering via a further surprise cut appears the best way to spur a relief rally but for now, the response by oil prices has been exceptionally tepid. Jul West Texas Intermediate crude rose 41¢ (0.6%) to settle at $72.15 a barrel.
U.S. Oil Futures Settle at Their Highest in More Than a Week
This was another dreary day for stocks. Higher prices for oil was a negative although the growth in global demand which includes China is still unclear. And the price of oil continues be be near its lows in the last year. The Dow remains stuck in the mud, where it's been all year.
Dow Jones Industrials
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