By Geoffrey Smith
GossipMantri.com – Texas power outages continue to hit households – and state oil production. Unemployment claims and housing market data are due, and the House of Representatives is holding a hearing on the short GameStop (NYSE 🙂 tightening. Stocks are lower as the big reflation trade takes a hiatus and Facebook (NASDAQ 🙂 finds itself struggling more with Australia. Here’s what you need to know about the financial markets on Thursday, February 18e.
1. Oil is soaring but Texas is still frozen over
Crude oil prices retreated from 13-month highs as the Texas blackouts continued to keep about 40% of U.S. oil production offline.
The outages can still be more than compensated by dipping into stocks that are still above historical averages, even though they have fallen sharply in recent weeks. Data from the American Petroleum Institute showed a 5.8 million barrels draw from inventories last week, well above the 2.1 million expected. Government inventory data is due at 10:30 a.m. ET (3:30 p.m. GMT).
Texas grid operator ERCoT said the blackouts will likely continue until Thursday and still has not given a firm deadline for restoring power statewide. The blackouts affected not only the state’s oil and gas fields and pipelines, but also the refineries that process the state’s crude, as well as Mexico’s gas supplies.
The spike overshadowed a Wall Street Journal report on Thursday that Saudi Arabia was considering overturning its unilateral decision to withdraw an additional 1 million arrels per day of production, starting in April.
2. GameStop hearing in the Chamber
The U.S. House Financial Services Committee will hear testimony from the heads of Robinhood, Citadel, Melvin Capital and Reddit later Thursday, as regulators attempt to find out what caused GameStop to spike, AMC Entertainment (NYSE 🙂 and others a couple. weeks ago.
The committee is looking for signs of market manipulation for a handful of heavily sold stocks that have been the subject of intense compression apparently orchestrated by users of a Reddit discussion board, r / wallstreetbets.
One of those who testify will be Keith Gill, known to Reddit users as Roaring Kitty. Gill has been the subject of a class action lawsuit alleging securities fraud filed Wednesday. The lawsuit was brought by securities class action firm Hagens Berman Sobol Shapiro on behalf of Washington state’s Christian Iovin and others in a similar situation, Bloomberg reported.
3. Stocks should open lower; Facebook courting trouble in Oz
US equity markets are expected to open lower as the vigorous rebound driven by “reflation” and “reopening” of transactions comes to a halt.
As of 6:35 a.m. ET, were down 84 points, or 0.3%, while they were down 0.4% and 0.8%.
Futures struggling amid growing concern over valuations and widespread expectations that investors would switch from expensive tech names to value names: a deal foreshadowed by Berkshire Hathaway’s partial rotation out of Apple (NASDAQ 🙂 and around Chevron (NYSE :), Cerizon and Marsh & McLellan.
Other actions that may be the center of attention include Facebook, which sparked new controversy overnight by banning information sharing in Australia in response to the country’s new law that requires it to pay publishers for what it displays.
Plus, kicked off the barrage of earnings for the day with one of the most high-profile duds of the season, earning just $ 1.39 per share instead of the expected $ 1.51.
4. Unemployment Claims, Housing Starts, Philly Fed
The US labor market gives its weekly reality check, with most analysts expecting the number to drop further. The forecast total of 765,000 would represent a two-month low, while still being higher than anything seen during the recent pre-pandemic period.
In addition to the claims data, there will be or January data, all at 8:30 a.m. ET with the Monthly Business Survey.
The numbers come a day after much stronger than expected retail sales data for January that reassured the market of strong consumer demand.
The Atlanta Fed chairman is scheduled to speak at 10 a.m. ET.
5. Airbus forecasts stable deliveries in 2021; The Boeing Board of Directors (NYSE 🙂
Airbus (OTC 🙂 has said it expects aircraft deliveries to remain stable this year, after an unprecedented drop in 2020.
The turnover of the European aerospace giant fell 30% last year to an operating loss of 510 million euros ($ 612 million).
Airbus’ big rival, Boeing, had suffered much larger losses due to company-specific issues with its 737 MAX program. Boeing said on Wednesday that directors Susan Schwab and Arthur Collins would step down from the board and not seek re-election this year.
Elsewhere, Air France KLM SA (OTC 🙂 said it expects more support from the government after slipping to a net loss of more than € 7 billion last year.