Monday Market Open

Dear Reader,

Welcome back to Monday Market Open. 

I want to remind you of the value of compounding - in life. Just like an investment, the value increases the longer you do a particular thing. This could be a relationship, a job, working out, reading, etc.

Before you jump ship into the new thing, think about the compounded benefits you have built up.

Enjoy today’s Alpha,

Market Indices & Commodities

(As of Sunday Eve)

What happened:
The Recap of the Week

• Inflation was hotter than expected 🔥

• Israel shuts down airspace amid drone/missile strikes from Iran 📰

• Elon and Argentina President hang, they bros now 📰

• Intel rolls out AI chip, maybe it will 1 v 1 Nvidia? 📈

Graph of the Day:
Strategic Oil Reserves

News:
What on the Horizon?

• Monday - Goldman Sachs, Charles-Schwab, and M&T Bank corporate earnings.

• Tuesday - Johnson & Johnson, Bank of America, Morgan Stanley, UnitedHealth, and United Airlines corporate earnings.

• Wednesday - Abbott Labs, Prologis, Equifax, Kinder Morgan, U.S. Bancorp, and Las Vegas Sands corporate earnings.

• Thursday - Taiwan Semiconductor, Netflix, Blackstone, and Alaska Airlines corporate earnings.

• Friday - American Express and Proctor & Gamble corporate earnings.

⭐Huge week of earnings from banks to airlines to consumer staple stocks. All earnings are according to Nasdaq.

The Secret Sauce:
Some Oily Secrets

Not the oily secrets you were probably hoping for, but, there is some intel you need to know.

As you saw in the Graph of the Day (up there^) the United States Strategic Petroleum Reserve (SPR) has dwindled since the Biden administration took office.

Currently, there are about 363 million barrels of oil in the strategic reserve (source). This is a 43% decline from when Biden took office.

With the conflicts in Ukraine & Israel and certainly many other factors, we have seen oil prices climb in recent weeks (to the mid $80’s for WTI).

About a month ago, the U.S. Department of Energy put in an order for 3 million barrels of oil to add to the strategic reserve. They aimed to purchase the oil for about $79 bucks/barrel, but since prices have since risen, they announced two weeks ago that they actually won’t be refilling the strategic reserve. Hmm.

It’s not the end of the world, but with the strategic reserve near historic lows, oil prices on the rise, and more pressure being put on oil producers (royalties, fees, etc.) - this will likely be a big talking point prior to the U.S. Presidential election that is just around the corner in November.

Oil and politics is a duo that goes way back, but its a big deal for voters because it certainly is observable.

I wouldn’t be surprised if we saw more withdrawals before the election. If I am Joe, I would start to strategize.

Let’s watch…

Hey - the sauce. You got it now. Thanks for reading.

Want more?

If you are interested in the oil portfolio of the U.S. click - here.

Want to get a sneak peak of some recent changes to the oil production industry that we will likely be covering in the near future? Click here. Want to see how Russia is illegally selling it’s oil for more than it can? Click here.

If you are busy, no sweat man, I will break these stories ^ down soon.

Thank you  
That’s all Folks

Hey, thank you for checking out Monday Market Open. I hope you enjoyed the highlights. Remember - life compounds and we are just along for the ride.

Cheers,