Key Takeaways
- Chevron (CVX) has commenced shipping Venezuelan oil to the U.S. with the first two cargoes departing, following a new license, marking a significant step in the resumption of oil flows.
- U.S. consumer sentiment in August fell to 58.6, below expectations, while both 1-year and 5-10-year inflation expectations surged to 4.9% and 3.9% respectively, indicating heightened inflationary concerns among consumers.
- The Trump Administration is reportedly exploring the use of Chips Act funds to acquire a stake in Intel (INTC), a move that could significantly impact the semiconductor giant.
- U.S. business inventories for June saw a 0.2% month-over-month increase, meeting expectations and reflecting a modest expansion in stockpiles.
Chevron Resumes Venezuelan Oil Shipments
Chevron (CVX) has begun sending its first two cargoes of Venezuelan crude oil to the U.S. following the issuance of a new license. Shipping data indicates that the initial shipments have departed, signaling a notable development in the energy market. This move comes after Chevron received authorization from the U.S. Treasury Department to revive oil output and expand operations in Venezuela. The resumption of these oil flows could potentially influence sour crude and high-sulfur residue feedstock prices in the U.S. Gulf Coast.
Consumer Sentiment Dips, Inflation Expectations Rise
U.S. consumer sentiment for August registered at 58.6, a decline from the previous month's 61.7 and below the estimated 61.9. This drop marks the first decrease in four months, largely attributed to increasing worries about inflation among consumers.
Adding to inflation concerns, both short-term and long-term inflation expectations saw significant increases. One-year inflation expectations rose to 4.9% in August, up from 4.5% in July. Similarly, 5-10-year inflation expectations climbed to 3.9% from 3.4% in the prior month. These rising inflation expectations could prompt the Federal Reserve to consider a more hawkish stance on monetary policy.
Trump Administration Eyes Intel Stake
The Trump Administration is reportedly considering utilizing funds from the U.S. Chips Act to acquire a stake in chipmaker Intel (INTC). This potential move, reported by Bloomberg News, could represent a significant government intervention in the semiconductor industry. The discussions are ongoing, and if realized, such an investment could have substantial implications for Intel and the broader tech sector.
U.S. Business Inventories Show Modest Growth
U.S. business inventories for June increased by 0.2% month-over-month, aligning with market expectations. This modest rise follows a 0.0% change in the previous month. The data reflects a slight expansion in the stockpiles held by manufacturers, wholesalers, and retailers.
Trump Discusses Prisoner Release with Belarus President
U.S. President Donald Trump announced he had a "wonderful talk" with Belarusian President Aleksandr Lukashenko. The primary purpose of the call was to thank Lukashenko for the release of 16 prisoners. Trump also indicated plans to discuss the potential release of an additional 1,300 prisoners. The conversation, described as "very good," covered various topics, including Russian President Putin's visit to Alaska.
Call for Investigation into Standard Chartered Bank
House Leadership Chairwoman Elise Stefanik has formally requested Attorney General Pam Bondi to investigate Standard Chartered Bank regarding alleged illicit payments to known terrorists. The request also highlights concerns over New York Attorney General Tish James's alleged inaction on these payments while approving the bank's licensure. Stefanik's letter claims the bank made at least $9.6 billion in illicit payments and that China has been using the bank to purchase sanctioned Iranian oil.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.