Marketbites: Oil & Gas Are Booming
Portfolio Manager Commentary:
Stocks advanced Tuesday as investors continued building on 2023’s early rally while waiting for economic data and corporate earnings coming later in the week. The Nasdaq led the major indexes for the second time this week adding 1.01%. Optimism that inflation is cooling pushed investors toward beaten-down technology stocks.
Billionaire investor Paul Tudor Jones was optimistic on the stock market Tuesday morning, saying the Federal Reserve likely would not break the economy, halting rate hikes before it does so. Jones, who noted he wasn’t making a specific forecast, said there was huge demand for stocks on the way this year due to share repurchases and mergers. “You’ve probably got something just under a trillion dollars of excess demand in U.S. stocks,” Jones said Tuesday.
The CPI report comes out tomorrow meaning that markets are likely to be directionless today as investors wait to hear how the economic data may effect the Fed's decision making.
Chart of the Day:
The Haynesville basin in Louisiana and Texas is busting with drillers. One such driller is Chesapeake, a fracking pioneer that was in bankruptcy just two years ago. Now, thanks to a mix of events, from the Russian invasion of Ukraine to the U.S. economic recovery, fossil fuels are showing surprising resilience despite President Biden’s push to transition to clean energy. The Biden administration has limited drilling on federal lands, but oil and gas companies have tapped the nation’s vast private shale reserves to drive production higher. This includes the Haynesville basin, a giant natural-gas field straddling east Texas and northwest Louisiana, where Chesapeake recently put a seventh drilling rig to work. As seen below, 69 drilling rigs were operating there in early January, compared with 32 in the summer of 2020.