kontekbrothers/iStock via Getty Images The interwebs are all ablaze with the news that Chinese oil demand has collapsed and that this is why the rise in oil prices has been moderate as compared to expectations, given the size of the supply shock. No, no, no, no... (repeat ad infinitum ). Chinese quantity demanded has fallen. That’s a movement along a demand curve. “Demand has fallen” is an inward ...
kontekbrothers/iStock via Getty Images The interwebs are all ablaze with the news that Chinese oil demand has collapsed and that this is why the rise in oil prices has been moderate as compared to expectations, given the size of the supply shock. No, no, no, no... (repeat ad infinitum ). Chinese quantity demanded has fallen. That’s a movement along a demand curve. “Demand has fallen” is an inward shift in the demand curve. Very, very different. If this seems pedantic: (a) it isn’t, because it is an important distinction, and (b) whatever–it’s a pet peeve precisely because I see this mistake over and over, and it leads people to extremely erroneous conclusions. The unexpectedly large decline in Chinese oil consumption (not demand) means that Chinese demand has turned out to be far more elastic than anticipated. That is, the demand curve is flatter than had been believed. Note that a more elastic Chinese demand curve translates into a more elastic world demand curve for oil than previously believed, especially since China represents such a large fraction of world consumption. This, in turn, means that the price effect of the supply shock due to the closure of Hormuz has been far less severe than had been anticipated. It’s interesting to ponder why Chinese demand is apparently so elastic and why analysts apparently didn’t realize how elastic it is. The Slutsky equation breaks down demand elasticity into two parts, a substitution effect and an income effect. The income effect is the product of expenditure share and income elasticity. So goods that account for a large share of consumption expenditure have large elasticities, ceteris paribus . Similarly, more income-elastic goods are more price elastic. So high expenditure shares or income elasticity could be part of the story. Furthermore, the demand for oil is a derived demand–it depends on the demand for final goods produced with oil and the supply curve for transforming oil into final (or at least further downstream) ...
Traders work at the New York Stock Exchange on June 8, 2026. NYSE S&P 500 futures rose early Tuesday after a rally in chip stocks boosted the index. Futures tied to the broad market index were up about 0.26%, while the Nasdaq 100 futures rose 0.55%. Dow Jones Industrial Average futures advanced 62 points, or 0.12%. In Asia, Japan's Nikkei 225 was over 2% higher, ending the trading day at 65,416.63...
Traders work at the New York Stock Exchange on June 8, 2026. NYSE S&P 500 futures rose early Tuesday after a rally in chip stocks boosted the index. Futures tied to the broad market index were up about 0.26%, while the Nasdaq 100 futures rose 0.55%. Dow Jones Industrial Average futures advanced 62 points, or 0.12%. In Asia, Japan's Nikkei 225 was over 2% higher, ending the trading day at 65,416.63, while South Korea's Kospi rebounded from Monday's slump, jumping 8.18% to 8,096.93. Hong Kong's Hang Seng Index edged 0.15% higher, while the mainland's CSI 300 was up 1.87% to 4,801.81. Australia's benchmark S&P/ASX 200 was down 0.24% to 8,604.2. Chip stocks led the S&P 500 higher in regular trading Monday, with the index rising 0.3%. The tech-dominant Nasdaq Composite climbed 0.86%. Both averages clawed back some of their losses from last week's tech rout. The blue-chip Dow , on the other hand, bucked the trend to shed 80.77 points, or 0.16%. Although the artificial intelligence and chip trade has been the primary market driver on Monday and in other recent sessions, Brian Kersmanc, portfolio manager at GQG Partners, offered some skepticism over the trend's longevity. "What the issue is on a longer-term basis is sustainability," Kersmanc said on CNBC's " Closing Bell: Overtime " on Monday afternoon. "So, how much further does this sustain on a longer-term basis?" "At the end of the day, a lot of these chip names are commodities," the portfolio manager added. "And if you look at it in terms of a commodity, when you have a rapid price increase that you had — in some areas of memory, you had a 15x price increase over the course of last year or so — if I were to recontextualize that … a 15x increase in energy, go from $60 a barrel to $900 a barrel, how many energy stocks would people be buying right now?" Iran on Monday halted military strikes against Israel, but warned it would resume attacks if Israeli forces continue operations in Lebanon, Tehran's foreign ministry told ...
The Morning Bull - US Market Morning Update Tuesday, Jun, 9 2026 US stock futures are pointing slightly higher this morning, with S&P 500 contracts up about 0.2% and Nasdaq 100 futures ahead roughly 0.6%, as investors weigh strong US jobs data against higher borrowing costs. Non farm payrolls showed 172,000 new jobs in May and unemployment held at 4.3%, a sign companies are still hiring and people...
The Morning Bull - US Market Morning Update Tuesday, Jun, 9 2026 US stock futures are pointing slightly higher this morning, with S&P 500 contracts up about 0.2% and Nasdaq 100 futures ahead roughly 0.6%, as investors weigh strong US jobs data against higher borrowing costs. Non farm payrolls showed 172,000 new jobs in May and unemployment held at 4.3%, a sign companies are still hiring and people are generally finding work. At the same time, the 10 year Treasury yield is around 4.57%, which...
JHVEPhoto/iStock Editorial via Getty Images Introduction Concentrix ( CNXC ) is one of those stocks that looks almost too cheap to ignore. The company trades at roughly 2.4x forward non-GAAP earnings and offers a dividend yield above 5%. Management also expects between $630 million and $650 million of adjusted free cash flow in 2026, which is significant relative to the company 's current market c...
JHVEPhoto/iStock Editorial via Getty Images Introduction Concentrix ( CNXC ) is one of those stocks that looks almost too cheap to ignore. The company trades at roughly 2.4x forward non-GAAP earnings and offers a dividend yield above 5%. Management also expects between $630 million and $650 million of adjusted free cash flow in 2026, which is significant relative to the company 's current market capitalization. The problem is that nearly every attractive number comes with a qualification. The earnings multiple excludes large GAAP charges, and the free cash flow is still guidance rather than a recorded result. The dividend is being paid by a company carrying more than $4.5 billion of net debt, while revenue growth is weak, several verticals are declining, and the expected margin recovery is weighted toward the second half of the year. Concentrix may be too cheap for a Sell rating, but the operating results do not justify a Buy either. Growth Remains Weak and Uneven Concentrix reported approximately $2.5 billion of revenue in Q1 2026, increasing by more than 5%, but constant-currency growth was only 1.9%. This is fairly weak for a company that 's trying to convince investors it can offset structural pressure in traditional customer-experience outsourcing. The vertical performance was mixed. Banking and financial services revenue increased 13%, while retail, travel, and e-commerce grew 6%. Media and communications revenue increased 3%. These are respectable figures, particularly in banking, where management expects growth to remain in the high-single-digit to low-double-digit range during the year. The weaker parts of the portfolio are more concerning. Technology and consumer electronics revenue declined approximately 6%, while healthcare revenue also fell around 6%. Healthcare weakness was tied to lower volumes related to Medicare membership and participation in Affordable Care Act programs. Management does not expect that vertical to return to growth for another coup...
Apple Inc. is expanding tools for parents to protect children online, a move that comes as governments around the world increasingly ban social media for young people. The iPhone and iPad maker at its Worldwide Developers Conference Monday previewed new features that will let parents better control on devices when kids can use apps, what content they can access and with whom they can communicate. ...
Apple Inc. is expanding tools for parents to protect children online, a move that comes as governments around the world increasingly ban social media for young people. The iPhone and iPad maker at its Worldwide Developers Conference Monday previewed new features that will let parents better control on devices when kids can use apps, what content they can access and with whom they can communicate. Tech companies are under growing pressure to limit children’s exposure to social media, which some psychologists have linked to mental health risks including cyberbullying, eating disorders and suicide. Apple already lets parents create special accounts for children, required for those under 13 years old and available for those up to 18. The updates are designed to help families “thoughtfully establish age-based protections and develop healthy digital habits,” Sumbul Desai , Apple’s vice president of health and fitness, said on the Cupertino, California-based company’s website. Beginning with software updates this fall, parents will be able to use children’s account features to pick which apps they can use and control which websites they can view, for example. Australia in December became the world’s first democracy to force the likes of Meta Platforms Inc. , TikTok, and Snap Inc. to kick under-16s off their platforms. The movement has since spread globally , with Indonesia, parts of India, the UK and several European countries implementing or discussing similar restrictions. Jury verdicts in the US in recent months against some of the services have increased public discussion of social media’s harms. Australian Prime Minister Anthony Albanese said Tuesday Apple Chief Executive Officer Tim Cook called him to discuss the new safety controls. “Mr. Cook told me these changes are in part inspired by Australia’s world leading social media age ban, as well as the continued research Apple is undertaking into the impact of social media on kids,” Albanese said in a statement. Apple ...