Oil Prices Fell

Photo by Yiorgos Ntrahas on Unsplash

The Fed will start cutting its balance sheet hard in May, by $95 bn per month, well over the 25% predicted earlier. Investment-grade banks and brokers may gain as a result but earnings will not rise more than about 4% in the quarter, versus last year's level of 31.1% in Q4.

China is increasing its actions against high-risk stocks and bonds by the People's Bank of China.

Oil prices fell after inventories turned out to be larger than expected

Drug stocks

*Teva (TEVA) gained 1.19% today. Chris Lau predicted that the Israeli firm would reach $19, up from $10.19 now.

*Roche (RHHBY) rose 0.4%.

*GlaxoSmithKline (GSK) fell 0.05% while ABB fell 0.06%.

*Japanese Eisei (ESALY) gained 1.3%

*Weyerhaeuser (WY) was rated buy and given a $1.10 TP, up from hold and $1.04.

*Vir (VIR) was expected to earn only $3.8 in the current quarter down from prior $4.12 but was rated buy rather than hold.

*Alkermes (ALKS) had good results from a phase II trial of its olanzapine with samidorphan to treat schizophrenia. 

Energy

*Shell (RDS-B) wrote down its Russia assets by $5bn up from a prior estimate of $3.4 bn and also cut its inventory by $7 bn.

*Cenovus Energy (CVE) fell 1% today, CVE.

*Pembina (PBA) preferreds were tipped. We own the common.

Other sectors

*Bank of America (BAC) has dropped coverage of Cemex in Mexico, not longer an ADR.

*Tencent (TCEHY) after pressure from Beijing is closing its video game platform for gambling, Penguin E-sports by early June.

*Banco Santander (SAN) gained 2.5%.