Notes From All Over As We Go Into Another Trading Day -- November 9, 2021

PPI: data resulted in plunge of bond yields.

Ten year treasury continues to drop: at midday, yield down to 1.417%.

WTI: still in backwardation -- but both December and January are trending higher.

• December, 2021: 83.64.
  
• January, 2022: 82.06
  

Copper:

CLR's Permian gambit, link here: 

CLR intends to offer a series of senior notes due 2026 and a series of senior notes due 2032 in a private placement to eligible purchasers. 

Continental intends to use the net proceeds from the offering to fund a portion of the purchase price in the recently announced acquisition from Pioneer Natural Resources Company, the "Pioneer Acquisition," to pay the fees and expenses associated with the offering and, if the Pioneer Acquisition is not consummated, for general corporate purposes, which may include repayment of certain indebtedness.

If anyone can find the proposed yield on these notes, please let readers know. Ten year treasury rate currently running about 1.4%. Let's assume a 200% premium with CLR's senior notes yielding 4.2%.

Robinhood: things not looking good --

• hacked, just announced;
• relied on payment for order flow; SEC is telegraphing that it will ban the practice (google it; I'm not interested)

Inflation: watch for middle class and upper middle class to watch sales a lot more closely. 

Yesterday, my favorite store for clothes shopping with Sophia, Old Navy, just a five-minute walk from our apartment complex, had an 18-hour 50% off sale. Sophia did not want to go, so we missed it, but my hunch is this is just the beginning. 

WTI: tea leaves -- very, very little downside risk for price of WTI. Enjoy it while it lasts. 

OPENING BELL

Major indices, coming off all-time records yesterday:

• Dow: down 20 points.
  
• S&P 500: up 6.5 points.
  
• NASDAQ: up 41 points.
  

Civitas rang the NASDAQ opening bell. From June 7, 2021:

June 7 (Reuters) - Civitas Resources Inc, being formed through the merger of Bonanza Creek Energy Inc (BCEI.N) and Extraction Oil & Gas Inc, said Monday it will buy peer Crestone Peak Resources to create a Colorado-focused oil and gas producer worth around $4.5 billion.

AAPL: whoo-hoo. Minutes into trading, AAPL turns green.  

BNPL: mainstream credit card companies, Mastercard, Visa, Discover, etc., need to offer BNPL plans. 

I don't want / need another plastic card in my billfold but BNPL is getting very, very attractive. Instead of paying off the bicycle I bought yesterday in one month to avoid finance charges, I would love to pay for it in four equal installments over two months.

SPR: releasing oil from the SPR is a one-trick pony, a one-shot deal -- sure, "they" can make multiple releases, but the announcement, if it comes, will be a one-off. Regardless of all the pros / cons / legality, the administration knows that once the announcement is made, the arrow has left the bow, and there are no more similar arrows in the quiver. 

Word for the day: quiver --

Middle English: from Old English cwifer ‘nimble, quick’. The initial qu- is probably symbolic of quick movement (as in quaver and quick ).