Trading Ideas

(Bloomberg) — America’s shale producers already had a profitability problem. It just got a lot worse.At a stroke, Saudi Arabia and Russia and their battle for market share have made almost all U.S. shale drilling unprofitable. Only five companies in two areas of the country have breakeven costs lower than the current oil price, according to data compiled by Rystad Energy, an Oslo-based consultancy.Wells drilled by Exxon Mobil Corp., Occidental Petroleum Corp. Chevron Corp. and Crownquest Operating LLC in the Permian Basin, which stretches across West Texas and southeastern New Mexico, can turn profits at $31 a barrel, Rystad’s data …read more […]

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White House economic adviser Larry Kudlow has some terrible financial advice to explain. …read more […]

In the wake of one of history’s largest oil price declines in a single day, Rystad Energy’s analysis shows that US drilled but uncompleted wells (DUCs) will be the first assets to be threatened by the newly formed low price environment …read more […]

Apple will take a serious hit in its China revenue in Q2 2020, but it could turn it around with when the new iPhone is launched later this year. …read more […]

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After becoming a net oil exporter last year, low oil prices aren’t unanimously a positive for the U.S. anymore. …read more […]

The market is in chaos.
It has had outsized moves nearly every day since February 19.
The coronavirus is scary stuff. Because it’s so easily transmitted, even from people who show no symptoms, it could prove very tough to avoid.
And aside from the human toll, which is frightening enough, the economic impact could be tremendous.
The travel and events industry is getting annihilated as people cancel trips and conferences. The ripple effect from people holing up in their homes is likely to be significant.
Consider…

The airline industry could lose out on between $63 billion and $113 billion in revenue.
The Organization for Economic Cooperation and …read more […]

Jefferies chief market strategist David Zervos expects the Federal Reserve to more aggressive on monetary policy as the virus-related selloff becomes “exponentially worse.” …read more […]

What does all this market volatility mean for your money, whether it’s your retirement accounts or that loan you’re paying off? …read more […]

(Bloomberg) — The arrival of the all-electric future that General Motors Co.’s Mary Barra touted last week will have to wait because of the new coronavirus.The automaker on Monday called off the early-April unveiling of the Cadillac Lyriq crossover, the first of several battery-powered models Barra has said will debut in the next few years. Worse yet, the boost GM shares got when she made the case the company can compete with Tesla Inc. was short-lived. The stock was hit hard by the virus-related market rout, falling the most since the carmaker’s November 2010 initial public offering.Cadillac is reevaluating plans …read more […]

The market is in panic mode from the coronavirus spread, but Advanced Micro Devices (AMD) just outlined a very attractive long-term financial model. As the health crisis dissipates in the next weeks and months, the chip stock has a very appealing path to strong revenue growth and margin expansion.Large Market Opportunity AMD forecast revenues reaching $8.7 billion in 2020. While the market likes the forecast for nearly 30% revenue growth this year, the company still only has a small market share of a global market with an estimated annual value of $79 billion.The company estimates the data center market will …read more […]

Panic!
That’s exactly what we are witnessing in the markets right now. But this panic can lead to opportunity!
Let me explain…
The CBOE Volatility Index (VIX) jumped over 50 today. That means the market is pricing in a 68% probability of a 50%-plus move in the S&P 500 (up or down) from current levels over the next 12 months. Let me repeat that – 50% up or down!
In 2009, that number was as high as 85%.
So that uncertainty is starting to creep in…
Part of that is thanks to the coronavirus and the U.S. government’s lack of a good strategy for combatting it. …read more […]

(Bloomberg) — America’s nascent status as a net petroleum exporter is already at risk as plunging oil prices threaten domestic production and give a leg-up to world’s biggest producers.The U.S. only in recent months began exporting more petroleum than it imports, a shift fueled by record shale production in fields such as the Permian Basin. Now, amid the worst price rout in nearly three decades, American drillers are facing a million-barrel drop in production that could curb U.S. exports and set back the country’s march toward energy independence.“The U.S.’s net exporter days may be numbered,” said Cailin Birch, a global …read more […]

Soaring coronavirus infection rates across the world sparked new pandemic fears that hammered global markets on Monday. …read more […]