Re-opening trade, CO2 record, Pfizer, Aramco earnings reports – What’s happening in the markets? By Investing.com


© Reuters

Yazar: Geoffrey Smith

Investing.com – The US is approaching a major milestone in the recovery of its economy. Factory orders and March trade data will be released. With stocks struggling for pre-market earnings Pfizer (NYSE :), CVS. T-Mobile and Under Armor (NYSE 🙂 also have something to say about vaccination progress and re-opening. And carbon dioxide emissions futures were the last commodity to see an all-time high.

Here’s what you need to know in financial markets on Tuesday, May 4th (happy Star Wars!).

1. re-opening

The states of New York, New Jersey, and Connecticut have said they will lift the restrictions within two weeks. This is a new milestone for a comprehensive opening in the US economy.

New York Governor Andrew Cuomo said at a press conference Monday that capacity restrictions at workplaces, theaters and museums will be lifted from May 19th. Shops, gyms and bars will also be able to return to their normal working order. The NYC subway will also start operating 24 hours the same day.

On the other hand, Prime Minister Boris Johnson in the UK said that the indoor hospitality sector should also open from May 17, the day when international travel restrictions will relax. All remaining social distancing requirements are likely to be lifted as of June 21. Like Cuomo, Johnson is under pressure to divert attention from the irrelevant scandals that make more headlines than the epidemic.

On Monday, the EU also announced plans to reduce bans on international travel.

2.Factories seek input – factory orders and trade data will be released

Those who want to watch the recovery in numbers rather than restrictions can expect the release of factory orders for March. Beforehand, the March trade balance data of the USA will be shared.

The order data will be released the day after the Supply Management Institute’s (ISM) survey of purchasing managers. ISM reported an all-time high on the orders sub-index and said it reflected pent-up demand for a wide range of products. On the other hand, inventories also saw an all-time low.

Progress in stocking will depend largely on fixing disruptions in supply chains: the ISM survey’s pay-to-pay index saw a 13-year high at 89.4, highlighting buyers despair. Semiconductors continue to be the segment with the most acute disruption. Infineon (OTC 🙂 warned that the slow reopening of the Texas plant after the snow storms in February will put pressure on current quarter sales.

3.Exchanges will mostly open low, earnings reports continue to be published

US markets will mostly open low. The reopening of the economy at an increasing pace favored cyclical shares.

while it did not change, it fell by 0.1% and 0.3%.

It’s another big day in terms of earnings reports: Pfizer, T-Mobile, CVS Health (NYSE :), Global Payments (NYSE:), Activision Blizzard (NASDAQ:), DuPont de Nemours (NYSE:), Match Group (NASDAQ:), Verisk (NASDAQ:) ve Under Armour var.

Under Armor shares surged close to 1% on Monday. The company agreed to pay $ 9 million to resolve an SEC review of accounting practices.

4.CO2 futures break new record

At a time when most commodities are skyrocketing, new records are set almost every day.

Thanks to speculative activities and the tendency of highly polluting firms under the program to postpone remedial measures to compensate for emissions surplus until the last minute, futures transactions related to emission trading rights under the EU’s CO2 trade scheme saw € 50 per tonne.

Prices have doubled since December, when the industries’ recovery from the outbreak began to accelerate, forcing companies to reduce the unexpected increase in emissions.

As the industrial recovery of the pandemic began to accelerate, prices have doubled since December, forcing companies to reduce the unexpected increase in emissions. As part of its broad strategy to achieve decarbonization, the EU will discuss on May 23 to expand its emissions trading plan to more industrial sectors.

5. Aramco gets enough cash to ‘almost’ pay the dividend, API stocks expected

On the other hand, Saudi Aramco (SE 🙂 reported a large increase in its profit in the first quarter of 2021 as the production restriction led to a large increase in crude oil prices.

The world’s largest oil company reported $ 18.2 billion in free cash flow with a profit of $ 21.7 billion. The cash flow was not enough to cover the $ 18.7 billion dividend payment.

Crude oil prices soared on Tuesday, encouraged by reopening reports in the US and Europe. prices increased 1.7% to $ 65.61, and rose 1.9% to $ 68.81. The American Petroleum Institute will share weekly stock data at its usual time.

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