WTI/RBOB prices were at the lows of the day after last night's huge surprise inventory data from API, but kneejerked higher after DOE reported a surprisingly large crude draw (the biggest since Dec 2016. However, it's clear that refineries are on fire as gasoline and distillates inventories surged by the most in at least 3 months. US crude production rose once again to its highest since August 2015.
API
With Project Gotham Shield concluding today, which as a reminder is a joint agency exercise involving FEMA, Homeland Security and various other law enforcement and military agencies as a response is tested for a “simulated” nuclear detonation over Manhattan, Fox 5 updates that Federal authorities are running nuclear response drills at MetLife Stadium in northern New Jersey.
Yesterday when commenting on the abysmal results and even worse guidance by steel giant US steel, which cut its 2017 guidance by more than half, now expecting 2017 net earnings of approximately $260 million, or $1.50 per share, more than 50% below the prior forecast of $3.08, we asked "if X cuts EPS by 50% in "improving" market conditions, one wonders what EPS would look like if conditions were actually worse."
After two days of back to back triple digit gains in the Dow for the first time since the election, overnight the torrid rally has faded, with European shares and U.S. stock futures little changed ahead of Trump's big unveil of his much anticipated tax cut plan as investors seek new impetus for a flagging relief rally. And, if as some traders expect, the rally is likely to be reignited no matter what Trump announces today (although a less hyperbolic plan may in fact be more favorable for risk, as it makes Trump's plan more likely instead of being shot down by Congress).
Authored by Gaius Publius via Down With Tyranny blog,
"We don't want a unified Korean peninsula ... We [also] don't want the North Koreans to cause more trouble than the system can absorb."
—Hillary Clinton, 2013, speech to Goldman Sachs