Most immediately some have tried to tie the crypto-cratering to S&P moves, but I think it's a minimal effect, aside from a few major funds hoodwinked (?) into investing in the sector. Aside calling a few moves (including 2 key tops in Bitcoin), I have viewed 'Blockchain' technology as real, crypto coins mostly as a rank gamble or actual scam (of which some were), multilevel marketing a similar comparison. But generally (because most investors got out around the time I was railing against it while debating a noted proponent at a NY 'financial show' before the pandemic).. generally it's not particularly tied to S&P moves, although a few big firms outsmarted themselves by playing in that 'space'.

However, prospects for S&P and even for Oil are tied to Election outcomes, a sort of neutral aspect at the moment. How so? Looks like the Republicans got the House, with the Senate still in-doubt, but you need slightly higher control to really mandate a proper Energy policy in this Country. Nevertheless Oil did dip on Wednesday, which is what I thought would occur with a 'Red' victory (a more logical policy also means more production incentives = lower prices).

Of course 'if' we can sidestep or emerge from recession in 2023 and mostly if China increases demand for Oil (regardless of better diplomacy with the USA) that would enhance Oil prices 'even with' increased production in the U.S. and for that matter some revived oil fields in Europe and new gas from near Israel.

A crisis of confidence in crypto has minimal influences for firms 'not' involved, and investors avoiding, that sector (which is something I've long cautioned). It is more likely the lack of a 'red wave' of election results that weighted on stock prices, plus an 'absence of bids' ahead of the CPI number in the morning.

That CPI may show a cooling of the pace of inflation, while I totally concur the prices in the real world remain higher, it's what I call 'entrenched inflation' that won't be clawed back. Relatively high energy prices have influenced virtually everything too, so even though Oil dipped today it wasn't because of policies to expand production, which will be harder to get passed politically, for now.

Today, among the struggling young EV companies, Canoo (GOEV) came forth with a few more of the 'building blocks' for their platform, architecture and 'factory'. I think it's the old General Motors plant in Oklahoma City, but regardless it's a savvy move and in proximity to their (eventual) Pryor OK factory, as well as a planned battery assembly factory, sourcing from Panasonic in Kansas.

Canoo numbers mean nothing yet, other than 'orders' and advances, with the 485 million of incentives from the States really helping as incentives. So far a lot of the focus has been on large or fleet customers, and may include Army use, first vehicles delivered to the US Army and others in the mix (CEO says).

The fleet approach probably solidifies their expense allocations for a couple years, and as this isn't the CEO's first rodeo, he may well pull this all off.

The OKC facility is close to rail and highway (I-40 and I-35), and expandable. SOP (start of production) will be 'this' month CEO Tony says at a 20,000 run rate of production by the end of Q1 of 2023. He also talked of new software, with 94% of devices able to be updated remotely over-the-air. He emphasized new models of business and insourcing 'software code' (developed in-house).

2 Billion in orders, contractual commitments of fleet buyers and so on were of course discussed. Over half of the orders are the 'van' variation. Production is said to be 'sold out' through 2024. Ready to start production and focused on it he said. Production starts November 17 (next week?), based on solid orders.

Canoo obviously is speculative (they all are), but they expect to expand to a 40k run-rate in 2024, and recognize that it's slower ramp to start the factory in Pryor than anticipated, but due to economics. He thinks that's fine, the focus on fleet use is welcomed, with orders 'this year' going to Walmart and NASA.

They did reduce their cash burn, which analyst like. Canoo has had publicity as it's a bit unique, but like others, the shares were under constant pressure. It was already down around 80% from the post-IPO high when we looked at it as one of the 'sprinkled' specs, and it's even lower now. If they can scale as it was presented today, and start deliveries, the percentage gains from this low level should be solid, although you never know with dilution possibilities and a perceived presence by a Chinese shareholder. But they are on-track for 40% reductions in operating expenses, which they seemed positive about (sure as they get to Production not just testing), but it's all really a normal process.

Inflationary difficult supply-chain environment, joint ventures are feasible, and maybe better 'financial advice' coming to them.. from Walmart for-instance? It (like some others) is frustrating, but seems like Canoo cut a good deal for the needed factory, not far from the eventual micro plant, and has quietly been a recipient of needed equipment and parts. Not too many details but surely this is a difficult business in a changed monetary climate, which he's pulling off or at least giving it their best shot. If so a year or two from now will be interesting as they have the price-points, early orders, and it will be 'Made in the USA'.

Bottom-line: 

Relationships with 'other countries' was a key point the President made today, and that fits with my concern about trade with China and the EU and not being to myopic in our thinking, outside of semiconductors which sure have a National Security aspect of concern. Hence domestic centric focus.

Craters, crisis and creation of postures for a new year are all at-hand. The EV space is generally a disaster for investors, but also selectively with promise. It is the same for Semiconductors, selectively interesting while others languish.

We'll reflect more after the CPI, although I don't sense prices declining, just perhaps peaking (and in some cases they've been doing that for months).