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US Crude Stockpiles Rise While Fuel Inventories Do a Sleight of Hand

According to the latest revelations from the American Petroleum Institute (API), US crude stockpiles might have sauntered up by as much as 1.3 million barrels last week. It seems that not only did the storage hub linked to the delivery of oil contracts on the New York Mercantile Exchange witness a build, but the weekly API inventory report also showcased declines in the reservoirs of gasoline, the crown jewel of American motor fuels, and distillates, the magician’s rabbits used for diesel and heating fuel.

In the grand theater of the energy market, this time of year typically sees a subdued demand for motor fuels in the US. As the weather transitions from fall to winter, Americans take a breather from their usual road-tripping escapades. However, the refinery industry’s current state of seasonal maintenance makes it a time of unconventional maneuvers, where larger-than-usual drops in fuel stocks become the norm, all while facing limited opportunities for restocking.

Contrary to the prior week’s significant 2.668 million barrel drop to October 10, primarily attributed to a sharp export decline, the week ending October 27 exhibited a balance where US crude inventory actually took a dip by 1.347 million barrels, according to API reports. It’s a market dance where the energy inventory seesaws, sometimes rising, sometimes falling, giving traders and observers alike a thrilling show full of unexpected twists and turns.

Stock Market Today: Dow ends higher, but can’t escape 3rd monthly loss; Fed eyed

The Dow closed higher Tuesday on the final day of trade for October, as investors digested a raft of corporate earnings, but stocks couldn’t avoid racking up a third-straight loss for the first time since March 2020.

The Dow Jones Industrial Average gained 0.4% or 123 points, and the  S&P 500 rose 0.6%, and the Nasdaq gained 0.5%.

Caterpillar, JetBlue disappoint on earnings stage

Caterpillar (NYSE:CAT) fell nearly 7% after the industrial equipment maker’s order backlog narrowed, stoking worries about slowing equipment demand and offsetting Q3 results that topped on both the top and bottom lines.

JetBlue Airways Corp (NASDAQ:JBLU) was also punished for weaker-than-expected quarterly results and the airline cut its annual guidance, citing a “challenging operation backdrop.” Its shares fell about 10%.

Wolfspeed rally support rise in chip stocks; AMD eyed

Wolfspeed Inc (NYSE:WOLF) rallied 22% to lift the broader chip sector after delivering better-than-feared quarterly results. But some on Wall Street remain cautious on the stock awaiting further visibility on performance of its Mohawk Valley chip-making factory, which was opened last year.

“While we view WOLF’s progress as substantial, we remain on the sidelines pending further derisking of Mohawk Valley,” Oppenheimer said in a note.

The uptick in chip stocks comes just hours ahead of the quarterly results from Advanced Micro Devices Inc (NASDAQ:AMD) due after the market closes.

“AMD’s CQ3 estimates should be achievable, particularly assuming some benefit from improving consumer PC shipments,” Wedbush said in a recent note.

Consumer confidence falls for third-month in a row; Fed decision in focus

Consumer confidence in October fell for the third-straight month, although the decline was less than economists had expected as inflation concerns continue to grow.

“Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular,” Dana Peterson, Chief Economist at The Conference Board said on Tuesday.

The news come just hours ahead of the Fed’s two-day meeting, which is expected to culminate in an unchanged decision on interest rates.

Treasury yields higher ahead of refinancing announcement

Treasury yields added to gains from a day earlier as investors looked ahead to the Treasury refunding announcement due Wednesday after the department on Monday cut its quarterly borrowing estimate for Q4 to $776 trillion from $852 trillion previously.

The Treasury’s funding plans have garnered added attention recently following a surge in Treasury yields, which some have attributed increased Treasury supply.



Chesapeake Energy Dazzles Wall Street Expectations, Triumphant Amidst Gas Price Turbulence

Chesapeake Energy pulled off a financial magic trick by outperforming Wall Street’s third-quarter profit forecasts, delighting investors with a 3.4% share surge in extended trading. The company wielded a cost-cutting scalpel, slashing production expenses down to a remarkable 23 cents per thousand cubic feet of gas equivalent, even outshining its own anticipated 2023 benchmarks. In a market where natural gas prices took a nosedive by a whopping 60% compared to the prior year, Chesapeake pirouetted through this turbulent challenge. The price plunge was a result of increased U.S. production and a waning worry over Europe’s energy security.

On an adjusted basis, the company delivered a profit of $1.09 per share, leaving analysts stunned as their predictions were a meager 60 cents per share, according to LSEG data. Despite a 15% reduction in overall production, down to 3,495 million cubic feet equivalent per day following the company’s departure from the Eagle Ford basin earlier in the year, Chesapeake boldly raised its 2023 gas production forecast to a range of 3,425 to 3,525 mmcfe per day, up from the previous estimate of 3,400 to 3,500 mmcfe per day. This confidence came from beefed-up volumes in the Haynesville region.

Adding a strategic cherry on top, Chesapeake inked a deal with energy bigwig Vitol, setting the stage for supplying up to 1 million tonnes of liquefied natural gas (LNG) annually over 15 years, starting in 2028. Once this pact is in motion, both parties will team up to select a U.S. liquefaction facility to churn out the agreed-upon LNG. This forward-thinking move not only signals a savvy alignment with market shifts but also plants Chesapeake Energy squarely at the forefront of the dynamic LNG landscape. It’s as if Chesapeake is not just riding the waves but orchestrating the symphony of the market’s evolution.

Smart investing is like a finely crafted work of art, where every decision is a brushstroke, and every asset is a color on the canvas of your financial future. It’s the symphony of numbers conducted by your financial genius, producing a harmonious melody of growing wealth. While others may play the stock market like a game of chance, the savvy investor orchestrates their portfolio with the precision of a maestro, turning market volatility into a well-timed crescendo of prosperity. So, remember, when you invest smartly, you’re not just making money; you’re composing a masterpiece of financial success.