E Heavy Global Erosion

Today global stock markets eroded heavily and Wall Street opened with the DJIA off by 600 points. The main cause was higher commodity prices, on which I wrote yesterday. The shortfall in oil, iron, and copper commodities and higher prices herald inflation. So does the low level of new hires also reported lately, because the jobless are not qualified for the jobs that are open, or perhaps that people prefer collecting unemployment insurance rather than working. Bank stocks are down because people are paying off their credit card bills with stimulus money.

Tesla's crash, Barron's Daily attributes to a 9,000 drop in the number of new cars it delivered last month in China. We have a Chinese car stock that was one of the reasons for the TSLA drop. It impacted the latest hot-hands fund, Cathie Woods's ARC Innovation, which lost 5% at the opening and is now back to its price last Nov.

British stocks which were a bright spot earlier are now down 2% on average today.

It is an everything-down day. Even the news is down because commenters are being careful. The only exceptions are the writers using pseudonyms. You have been warned.

My own portfolio opened down 1.5% but now buyers of stocks looking cheap have bought enough of my favorites so my portfolio is off 0.47%, mainly because of a recovery in drugs and commodities. The selloff lost steam during the morning and there may be hope after all. But don't count on it. Because the falls are so variable I am only writing up stocks that rose today. The selloff lost steam during the morning and there may be hope after all. But don't count on it.

Photo by Annie Spratt on Unsplash

Autos & Energy

*E.on SE. EONGYreported Q1 GAAP earnings of 31 euro cents/sh, a beat. And revenues were up 4.2% from Q1 2020 at euros 18.4 bn, another beat. Citi reported that adjusted EBIT earnings were 5% ahead of the consensus at euros 1.66 bn. Net debt at end-March was down euros 1.7 bn well ahead of esstimates of euros 1 bn. The only sour note was that EON did not raise its 2021 guidance, and the result was that despite excellent resulst, EONGY shares fell 1% to euros 10.56. The German ute could not gain traction in a big selling market.

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William K. 1 month ago Member's comment

Another great article, Vivian. Thanks.