Posted on 10/11/2021 7:00:47 AM PDT by MNJohnnie
U.S. stock index futures slipped on Monday as surging commodity prices added to inflation worries, which could cloud the earnings season set to start with Wall Street banks later this week.
Rising raw material costs, labor shortages, and other supply chain bottlenecks have raised concerns of elevated prices denting corporate profit.
U.S. oil rose nearly 3 percent and touched a seven-year high as an energy crisis gripping the major economies showed no sign of easing.
But it lifted shares of Chevron Corp., Exxon Mobil Corp., and APA Corp. between 1.2 percent and 3 percent in premarket trading.
Mega-caps Apple Inc., Microsoft Corp., and Amazon.com Inc. fell between 0.6 percent and 0.8 percent.
“There are undoubtedly significant risks to growth borne out of the recent rise in prices, with surging natural gas prices bringing the potential for sharp increases to both energy and food expenses,” Joshua Mahony, senior market analyst at IG wrote in a client note.
“Inflation looks like it will be here for some time.”
At 7:01 a.m. ET, Dow e-minis were down 117 points, or 0.34 percent, S&P 500 e-minis were down 21.5 points, or 0.49 percent, and Nasdaq 100 e-minis were down 107.25 points, or 0.72 percent.
Earnings season will kick off this week, with JPMorgan Chase & Co. reporting on Wednesday, followed by Bank of America Corp., Morgan Stanley, and Citigroup Inc. on Thursday and Goldman Sachs Group Inc. on Friday.
Analysts see a 29.6 percent year-over-year increase in profit for S&P 500 companies in the third quarter, according to IBES data from Refinitiv as of Friday, down from 96.3 percent growth in the second quarter.
All of Wall Street’s main indexes had ended the last week with gains, but investors still expect the Federal Reserve to begin tapering asset purchases later this year.
After data last week showed weaker jobs growth than expected in September, investors are now looking toward inflation and retail sales numbers this week, as well as minutes of the Fed’s last meeting that could confirm that a November tapering was discussed.
Southwest Airlines Co. slipped 1.9 percent on report that it canceled at least 30 percent of its scheduled flights on Sunday.
Just in time for the 2022 massacre. We need to run solid America First Republicans, can't afford to turn the reins over to the Ryan wing.
Well, gold and silver prices are still boring right now, for now...
I read an article that suggest crypto currencies are draining off money that would otherwise be flowing into gold and silver right now.
Short lived if there is any at all. Right Lets Go Brandon? Must be easy to dismiss when someone else is footing the bills.
Most everything in rally mode for the moment. People got so used to low energy prices they thought they were permanent. Banks looking good too with the higher interest rates.
Gold and silver have never made it back to their highs in 1980.
I own PMs and largely ignore them, but you’re right. The entire canard that they respond to tumultuous political events seems not to hold. For now.
It looked that way overnight but the market is nicely green, today. Party on!
The fundamentals are no longer based on market forces, they are based on manipulation and monopoly money.
Pottersville.
I challenge anyone to show me a sector that has performed worse than gold and silver for the last 40 years.
“The fundamentals are no longer based on market forces, they are based on manipulation and monopoly money.”
People have said that for decades. Hasn’t worked out for them.
So the market is going nuts over energy stocks. So is there a goldilocks point for oil prices?
Bidens kickbacks to Putin and the mullahs in Iran is paying off. As are the checks to Hunter and Joe’s cut.
If you mean a stable point where the oil is stable and just pumps dividends I don’t think so. Most oil production is controlled by governments, not private companies. Those govts can upset the apple cart anytime they want. I watched oil go from 147 to 27 in a couple of months during the GW Bush days.
All the multinational private energy companies only control about 7% of the market.
Crypto currencies have replaced gold, silver and diamonds as a method to move money internationally without your respective government knowing about it.
Crypto gives a billionaire/millionaire the means to move wealth to a bank in the Caymans, Switzerland, Panama, BVI’s, or other off shore locations that is not traceable.
No I was wondering if there is a goldilocks point where oil is not too high and not too low but just right?
It seems to me I seen stories in the past where oil was far too high or far to low and thus creating economic drag
Yes, holding and storing enough physical metals to make any difference is expensive. Plus, gold and silver markets are too small and can be played with by the boys, we learned that 40 years ago when they hit their highs.
Crypto’s only problem is the coming govt control.
Ah, sorry. That’s a very good question. I’m not good enough to suss out all the moving parts of the economy as they interface but energy people are saying the economy can handle a price well over $100 and still do well.
It’s more like pornography in my experience, I’ll know it when I see it. Sometimes that’s too late but overall energy has been very good to me for decades, with hiccups along the way of course. But that happens in every asset class.
By the way, I’ve gotten back into financials some, banks should make some good money this quarter at least.
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