Stormy Times for Big Oil Profits
Plus, the hottest crypto today.
Today is Monday, August 30, 2021.
How Hurricane Ida Impacts Stocks
Hurricane Ida hit the Gulf Coast on Sunday. This powerful storm, which was classified as a category 4 hurricane, could have dire economic consequences.
The Numbers: Nearly half of the oil and gas platforms in the Gulf Coast were evacuated this weekend, including all rigs, according to the Bureau of Safety and Environmental Enforcement. This results in 84% of natural gas production and 91% of oil production in the region being halted. The Louisiana Offshore Oil Port, one of the nation’s largest crude oil terminals, reportedly stopped deliveries from coming in.
Why This Matters: The Gulf Coast accounts for a big chunk of gas and oil production for the country. Certain energy stocks could be impacted as the week goes on.
Unknown: The region is also home to refineries and other factories. The impact of Hurricane Ida on these companies is uncertain at this time.
Stocks To Watch: Exxon Mobil (NYSE: XOM) and Phillips 66 (NYSE: PSX) are among the energy companies that shut down production in the region.
Final Thoughts: Historical trends indicate that hurricanes have little to no negative impact on stocks. In fact, home building stocks sometimes perform well as people rebuild from storms. Keep an eye on Home Depot (NYSE: HD) and Lowe`s Companies (NYSE: LOW).
Notable Earnings Today: Zoom Video Communications (Nasdaq: ZM), Li Auto (Nasdaq: LI), Nordson (Nasdaq: NDSN), ReneSola (NYSE: SOL) StoneCo (Nasdaq: STNE), China Petroleum & Chemical Corporation (NYSE: SNP).
Notable IPOs Today: CHW Acquisition Corporation Unit (Nasdaq: CHWAU), Agrico Acquisition Corp. Class A Ordinary Shares (Nasdaq: RICO).
Notable Equity Crowdfunding Campaigns Ending Today: n/a
Notable Economic Events Today: Pending Home Sales (10:00 a.m. ET), Dallas Fed Mfg Business Index (10:30 a.m. ET).
Behind the Meteoric Rise of Solana
Cryptocurrency Solana is worth three times its price from a month ago, reaching an all-time high of about $93 on Sunday.
Background: Solana is considered to be a programmable blockchain and is among the fastest in the market.
Numbers: With a new market cap of around $27 billion, Solana is now the eight-most valuable cryptocurrency.
Surging: There was an announcement a few days ago that said Chainlink Price Feeds are running live on the Solana blockchain, which caused the price to jump.
Final Thoughts: Solana is also still young and has only been around for less than two years.
Getting Semiconductor Exposure Through Equity Crowdfunding
While investors can get exposure to the hot semiconductor industry through the public markets, there are also startups in the sector that are looking for investors on equity crowdfunding platforms.
Big Picture: The semiconductor industry is hot due to increased demand and limited supply. Semiconductors are used in everything from video games to cars.
Go Private: Investing in a public company is great, but exposure to startups on equity crowdfunding gives investors an opportunity to buy into the company when it is still young.
Opportunity: Rayton, a startup in the semiconductor sector, is currently raising funds on StartEngine. The company previously crowdfunded over $6 million.
Final Thoughts: Equity Crowdfunding carries risks, so investors should conduct due diligence before jumping in.
Trends To Watch
Fresh IPO: Business software maker Freshworks makes IPO filing public (Reuters / Yahoo!)
Dorsey Strikes Again: Jack Dorsey's Square is looking to build a decentralized exchange for bitcoin (Markets Insider)
I’m Havana Good Time: Cuba’s central bank now recognizes cryptocurrencies such as bitcoin (CNBC)
Good Analysis: How the Biggest Companies Have Fared During the Covid-19 Pandemic (The Wall Street Journal)
X Marks The Spot: CoinList Opens Registrations for Immutable X, a Layer-2 for NFTs on Ethereum (Crowdfund Insider)
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