Much of the recent ebulient narrative about equity markets has been based on the promise of an earnings rebound - due to beneficial comps in the oil & gas sector. That narrative just hit a wall...
As Bloomberg notes, analysts haven’t rushed to upgrade their outlook on earnings per share at Europe’s biggest energy companies, even as Royal Dutch Shell Plc, Total SA and Statoil ASA beat estimates for a second straight quarter.
With WTI heading for its best week since 2016, demand and inventory data is trumping production for now and today's Baker Hughes rig count data did nothing to change that as, following last week's 1 rig drop, producers only added 2 oil rigs in the last week to 766.
Judging by the lagged correlation to WTI, rig counts are stalling as expected...
This Is Why Shrinkflation Is Making You Poor
S&P futures have tracked both European and Asian markets lower, which were dragged down by the big EPS miss and guidance cut reported by Amazon on Thursday. Meanwhile, the pounding of the dollar has resumed with the euro and sterling strengthening against the dollar due to renewed political concerns after this morning's stunning failure by the Senate GOP to pass a "skinny" Obamacare repeal after John McCain sided with democrats.
Authored by Mac Slavo via SHTFplan.com,