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After 50 Years, U.S.-Saudi Petrodollar Pact Ends

By talking magic fingers -
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 The 50-year U.S.-Saudi petrodollar deal expired recently. Global crude oil transactions employ the U.S. dollar, known as the “petrodollar”. After the U.S. left the gold standard in the 1970s, the US and Saudi Arabia made a pact that had far-reaching effects on the world economy. Few global financial accords have benefited the U.S. economy as much as the petrodollar pact. Good for U.S. Bonds After the 1973 oil crisis, Saudi Arabia agreed to price its oil exports in U.S. dollars and invest its surplus income in Treasury bonds under the petrodollar agreement. The U.S. protected the kingdom militarily in return. This deal gave the U.S. a dependable oil supply and a captive debt market, while Saudi Arabia received economic and overall security. Reserve Currency status Oil denominated in U.S. dollars is significant beyond oil and finance. The deal made the dollar the world's reserve currency by requiring oil sales in DXY. This has greatly affected the U.S. economy. American consumers pa
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Nvidia split its stock 10-for-1. What to Expect Next.

By talking magic fingers -
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   [caption id="attachment_59317" align="aligncenter" width="1200"] image credit: Nvidia[/caption] Nvidia shares will drop to 10% of last week's price for good cause. On the first trading day of today, Nvidia stock is trading at $100 instead of $1,000 after a 10-for-1 stock split. Stock splits lower share prices by giving present holders more shares, making it easier for more investors to buy a stock. Nvidia split like many other tech companies whose shares had soared, so it reined them back and prepared for a new growth phase. Alphabet, Amazon, and Tesla all divided stocks in recent years. After Nvidia's share price soared beyond $900 earlier this year, investors speculated about a split. When it was announced late last month, along with a solid earnings report, the stock soared past $1,000. Now that Nvidia has finished this long-awaited procedure, here's what to expect. First, some stock split details. After trading closed on June 7, Nvidia
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NASDAQ, S&P 500 close at record highs for 4th day as tech lifts

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  The S&P 500 and Nasdaq set record closing highs for a fourth straight day on Thursday as technology shares maintained their climb. Last week, new unemployment claims rose and producer prices unexpectedly declined in May, bolstering chances of a September Federal Reserve rate cut. After three quarter-percentage-point cuts in March, the Fed forecast only one rate cut this year on Wednesday. The S&P 500 technology sector and semiconductor index (.SOX) climbed strongly. After Broadcom boosted its projection for income from artificial intelligence semiconductors, shares rose to a record high. A 10-for-1 forward stock split was also announced. Nvidia (NVDA.O) shares also rose. "We're seeing a little bit more of a decline in yields, but it's still very much a tech story" in stocks, said Murphy & Sylvest senior wealth advisor and market strategist Paul Nolte in Elmhurst, Illinois. "When you look at the broader market, you're not seeing the participation
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Trump attacks Ukraine aid, talks tax reform, tariffs with Republicans.

By talking magic fingers -
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 On a Thursday visit to Capitol Hill, Donald Trump blasted U.S. funding for Ukraine, urged Republicans to cut gratuity taxes, and promoted tariffs. He also dubbed the city hosting his party's presidential convention "horrible." Trump met with House and Senate Republicans to repair differences before the Nov. 5 election, which could give his party control of the White House and both chambers of Congress. Despite their tense relationship, he shook hands with Senate Republican Leader Mitch McConnell and advised hard-line Representative Marjorie Taylor Greene to "be nice" to House Speaker Mike Johnson after her unsuccessful deposition effort. Trump remarked, "There's tremendous unity in the Republican Party," after the Senate meeting. Republican leaders hurried to explain after numerous media sources reported that Trump informally dubbed Milwaukee a "horrible" city a month before his party's presidential nomination there. That might alien
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Adobe forecasts full-year sales growth on strong software demand

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 Photoshop maker Adobe boosted its fiscal 2024 revenue prediction on Thursday as more businesses and individuals use its AI-powered editing tools amid an easing economy. [caption id="attachment_59611" align="aligncenter" width="1200"] image credit: the adobe blog[/caption] The San Jose, California-based company's shares rose 14% in extended trade. The company now forecasts revenue between $21.40 billion and $21.50 billion, up from $21.30 billion. LSEG says analysts projected $21.46 billion on average. As creative workers spend more on Adobe's Premiere Pro, Animate, and After Effects, Adobe's AI initiatives are paying dividends. Despite competition from OpenAI, Stability AI, and Midjourney, the business announced in April that Photoshop will include an AI tool to make images. [caption id="attachment_37522" align="aligncenter" width="590"] Photo: Open AI[/caption] The company topped second-quarter revenue projectio
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Canadian dollar falls as greenback advances broadly

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 The Canadian currency fell against the U.S. dollar on Thursday as the greenback rose versus a basket of major currencies and the Bank of Canada repeated its potential rate cuts. After trading between 1.3715 and 1.3763, the loonie fell 0.2% to 1.3750, or 72.73 U.S. cents. "The U.S. dollar has maintained its bid tone since last week's stronger-than-expected nonfarm payrolls report," said Convera Canada ULC senior market analyst Michael Goshko. The U.S. dollar after the Federal Reserve on Wednesday delayed interest rate decreases until December, despite a weaker May producer price inflation report that weighed on Treasury yields. Friday's data revealed the U.S. economy added more jobs than projected in May. The BoC reduced rates last week, becoming the first G7 central bank to do so. On Thursday, at a conference in Ottawa, BoC Deputy Governor Sharon Kozicki reiterated the central bank's message that further cuts would follow if inflation eased, but policy choices wo
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Elon Musk says Tesla shareholders are voting in support of his $56 billion pay plan.

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 Tesla shareholders were ready to approve Elon Musk's $56 billion pay plan, which was considered a vote of confidence in his leadership and an incentive to keep his focus on the electric vehicle company. Musk released a chart on his social media platform X late on Wednesday showing that the resolution and another vote to relocate the company's legal headquarters to Texas were expected to pass by large margins, though shareholders can amend their votes up until the commencement of the annual meeting. A source familiar with the preliminary voting results confirmed that Musk provided an accurate count of the figures. The decision will be made at a meeting at Tesla's headquarters in Texas on Thursday at 4:30 p.m. EDT (2030 GMT). "Thanks for your support!" Musk stated. The Tesla CEO may still face a lengthy legal battle to persuade a Delaware judge, who disqualified the package in January, calling it "unfathomable." He may also face new litigation following T
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