Shell Reports Record Quarterly Profits – Closing Bull May 6th, 2022
Quick Summary:
In this week’s Closing bull, we’ll be taking a look at April’s job report showing a large gain, more than expected. The Feds raising rates by half a percentage point. Shell posted a record $9B quarterly profit. Potential talk of windfall taxes being used on companies. Consumer prices in Europe hit another record. France’s largest supermarket chain plans to put popular products under a “price shield”. UK markets lowering prices of essentials.
Let’s get into the news.
Key News This Week:
Market recap
April job report shows a larger increase than expected
The Feds raise rates by half a percentage point
Shell posted a record $9B quarterly profit
Windfall taxes coming to companies that benefit from windfall benefits
Consumer price increases in Europe hit another record
Leclerc plans to freeze prices of 120 top products through July
UK markets lower prices of essentials
Read the Transcript
Hi and welcome to my financial markets’ re-cap for the week.
Yet another wild week, even wilder than last week! I was down then up, then down again. I had to exit my trade at a loss due to the crazy volatility caused by the Fed news, which we will get to.
Never feels good taking losing trades, and I have to say, this is the wildest volatility I have ever seen since the start of the pandemic. But all you can do is follow your system, manage your risk as best you can, even in the face of unprecedented moves, and live to fight another day. I always know that whatever the market takes from me, I’ll be getting it back with interest in a short while. So, back sitting on my hands this week but I am expecting a rally very soon.
That was the system update, what is happening in the news?
This morning the April jobs report showed a gain of 428,000 jobs, more than the 400,000 expected by economists surveyed by Dow Jones. But it only seemed to cheer the market for a short while.
The big volatility this week was caused by the fed. Raising rates by half a percentage point — the highest hike in 20 years.
The Fed had lowered rates to basically zero — making it cheaper to borrow money, to help give the struggling economy a boost. But this year, as demand struggles with supply, US inflation has hit record levels and the Fed has finally begun raising rates. The goal: Get Americans to focus on saving rather than spending.
Will it work?
Some fear that raising rates too quickly could slow down the economy and tip it into a recession. Others think the increase should have come sooner, only time will tell, but it sure is wild out there because of it.
In earnings news, Shell — Europe’s biggest oil business — posted a record $9B quarterly profit. $9 Billion! Now there is talk of using a windfall tax on companies that benefit from windfall profits like those in geopolitical situations like the war in Ukraine.
News on inflation, European shoppers are getting help in the grocery aisle. Consumer price increases in Europe hit another record last month, just as they are here, as Russia’s war on Ukraine drags on. In response, Leclerc, France’s largest supermarket chain, plans to put popular products under a “price shield” to make them more affordable. UK markets also lowered prices of essentials, and others across the EU are considering cuts.
Leclerc plans to freeze prices of 120 top products through July. The desired result will be predictable prices on staples like ketchup, coffee, and pasta. Let’s hope that concept spreads here too!
That’s it from me, It’s Friday, time to down tools, thanks for watching, and bye for now.