S&P 500 could slide another 33% in a 1970s-style inflation environment: Société Générale
The bear market in stocks probably isn’t over — and could have much longer to run...
The bear market in stocks probably isn’t over — and could have much longer to run if the economy falls into a 1970s-style stagflation scenario, a Wall Street equities strategist warned this week.
The S&P 500 officially entered a bear market last week, falling more than 20% from its Jan. 3 record finish. The U.S. equity benchmark is on track for a historically ugly half-year performance as markets expect tighter monetary policy to get a grip on the inflation but worry the interest rates will rise to levels that cause a recession.
“We have been and remain in a ‘de-risking, defensive and de-rating’ mindset for 2022, as Fed hikes in the current downturn should create collateral damage, leading us to adopt a bearish stance on U.S. Consumer, Financials and Small-caps,” said Manish Kabra, Societe Generale’s head of U.S. equities, in a Tuesday note. “But the committed fight against inflation looks set to trigger a domino effect, with the Housing and Credit markets looking like the next dominos to drop.”
Oil and gas stocks suffer broad, sharp selloff as crude futures drop
The S&P 500's energy sector was suffering a unanimous selloff, as crude oil ...
The S&P 500's energy sector was suffering a unanimous selloff, as crude oil cl00 and natural gas futures ng00 slumped amid growing demand concerns and as the Biden administration calls for a gas-tax holiday. The SPDR Energy Select Sector ETF xle dropped 3.4% with all 21 equity components losing ground, as crude oil futures shed 4.4% and natural gas futures lost 1.0%. Futures es00 for the S&P 500 spx were down 1.4%. The energy ETF's biggest decliners were shares of Marathon Oil Corp. mro, down 5.2%, and Devon Energy Corp. dvn, down 4.5%. Among other more-active components, shares of Occidental Petroleum Corp. oxy slid 3.4%, Exxon Mobil Corp. xom declined 3.0% and Kinder Morgan Inc. kmi shed 2.6%. The best performer was Williams Companies Inc.'s stock wmb, which fell 1.9%.
EIA: New US Gulf fields won't offset production declines
US Gulf of Mexico oil production will be largely unchanged in 2023 compared with 2022 levels, while natural...
US Gulf of Mexico oil production will be largely unchanged in 2023 compared with 2022 levels, while natural gas production will decline slightly, even though nine new oil and gas fields are due to start up this year and account for 5% of the region's gas output and 14% of oil output by the end of 2023, the Energy Information Administration predicts. The additional supply from new fields will be insufficient to make up for the production losses, the EIA said.
Venture Global in 20-year LNG deals with German firm
Venture Global has reached two 20-year agreements to sell a total of 1.65 million short tons of liquefied...
Venture Global has reached two 20-year agreements to sell a total of 1.65 million short tons of liquefied natural gas per year from its proposed Plaquemines and CP2 LNG export facilities in Louisiana to German energy company EnBW, with deliveries set to begin in 2026. "This is the first direct binding offtake agreement for long-term US LNG signed by a German company, an important step that manifests Germany's strategy to diversify its energy mix," said Venture Global CEO Mike Sabel.
