Supply Chain Crisis, Explained

Plus, Aramco’s Record Quarter.

Steven Lerner
Steven Lerner

Today is Monday, May 16, 2022.

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Supply Chain Crisis, Explained

With so many stocks affected by the global supply chain crisis, Vector Global Logistics’ Enrique Alvarez discussed the state of global supply chains in a new episode of the Early Bird podcast.

Causes: Alvarez outlined several causes for the supply chain disruptions, including the pandemic, inflation, and the war in Europe. Port issues at home also created a snowball effect.

Next: Want to see how supply chains are still impacting stocks? Keep an eye on China, which is a central manufacturing hub and has been hurt by lockdowns, Alvarez said.

Tech: The technology sector, specifically semiconductors, faced a double whammy, according to Alvarez. First, the pandemic limited supply in the sector. And then the war in Europe made things worse because Ukraine has certain minerals.

Final Thoughts: Despite supply chain issues, which sector does Alvarez feel more optimistic about today? Find out by listening to a new episode of the Early Bird podcast.


Notable Earnings Today: (Nasdaq: WIX), Sundial Growers (Nasdaq: SNDL), Tower Semiconductor (Nasdaq: TSEM), Take-Two Interactive Software (Nasdaq: TTWO), (Nasdaq: MNDY), Danaos (NYSE: DAC), Weber (NYSE: WEBR), HighPeak Energy (Nasdaq: HPK), Warby Parker (NYSE: WRBY), Stratasys (Nasdaq: SSYS), (Nasdaq: SOHU), Helbiz (Nasdaq: HLBZ), Hookipa Pharma (Nasdaq: HOOK), Bitfarms (Nasdaq: BITF), Tencent Music Entertainment (NYSE: TME), Clear Secure (NYSE; YOU), Nu Holdings (NYSE: NU), Mind Medicine (Nasdaq: MNMD), Super League Gaming (Nasdaq: SLGG), AcelRx Pharmaceuticals (Nasdaq: ACRX), BuzzFeed (Nasdaq: BZFD), Consensus Cloud Solutions (Nasdaq: CCSI), Flotek Industries (NYSE: FTK), GAN (Nasdaq: GAN), iPower (Nasdaq: IPW), Kala Pharmaceuticals (Nasdaq: KALA), Passage Bio (Nasdaq: PASG), PolarityTE (Nasdaq: PTE), Ryanair Holdings (Nasdaq: RYAAY).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Atlis Motor Vehicles (Rialto), Lil Mama’s (MainVest), King G (MainVest).

Notable Economic Events Today: NY Empire State Manufacturing Index (8:30 a.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET).

Aramco’s Record Quarter

OMV Oil Refinery in Schwechat, Austria.
Photo by Dimitry Anikin / Unsplash

Shares of Saudi Arabian Oil (TADAWUL: 2222) jumped 4.18% on Sunday after the global oil giant posted positive financial results.

Financials: The company, also known as Aramco, posted $39.5 billion in net income during the quarter, which represents an 82% year-over-year increase and a record quarter for the company.

Bonus: Aramco is so profitable that it approved a distribution to shareholders on Sunday of one bonus share for every 10 shares held in the company.

Background: The company has benefited from higher oil prices. Aramco’s stock is up 31% this year.

Final Thoughts: Oil prices might drop again. Will this hurt Aramco?

What's Behind Utility’s Surge?

Utility stocks have put on an impressive performance so far in 2022.

Ranking: The utility sector is the second-best performing sector of the year, running 15 percentage points higher than the S&P 500, according to The Wall Street Journal.

Background: Most sectors started the year poorly, especially technology. Utility stocks seemed to have bucked the trend.

Final Thoughts: Can utility stocks continue to perform at a high level in 2022, especially if there is an increase in interest rates?

Yes We ManTech: Carlyle Group Is in Advanced Talks to Buy US Government Contractor ManTech International (Bloomberg)

Help the Little Guy: Ethereum co-founder says every ‘average smallholder’ impacted by Terra’s stablecoin crash should be made whole, cites FDIC’s $250,000 as ‘precedent’ (Fortune)

Help Wanted: A severe pilot shortage in the U.S. leaves airlines scrambling for solutions (NBC News)

We’ll Find Out Soon: How resilient is the US consumer? (CNN)

Best Bad Choice: Investors Stay Put, Because They Can’t Think of Better Options (The Wall Street Journal)

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