Morning Journal--Big government, the dream and the reality

News on Stocks in Our Portfolios

Home Depot beats estimates. Home Depot (HD) reported better-than-expected Q1 earnings as both revenue (+7.4% Y/Y) and EPS beat estimates. A "seasonal timing change" added $574M to sales and comps growth came in at 4.3% (4.8% in the U.S.). "Less favorable" weather conditions were more than offset by a "recovering housing market," CEO Frank Blake said. HD also raised its FY13 outlook, saying it sees 2.8% sales growth, 4% comps growth, and EPS of $3.52 (consensus is $3.54).

 
Medtronic (MDT): Q1 EPS of $1.10 beats by $0.07. Revenue of $4.5B beats by $0.11B

Economics

   This Week’s Data

            The International Council of Shopping Centers reported weekly sales of major retailers up 0.2% from the prior week and up 3.1% versus the comparable period a year ago: Redbook Research reported month to date retail chain store sales up 0.5% versus the similar time frame last month and up 2.4% on a year over year basis.

            Weekly mortgage applications fell 9.8% while purchase applications dropped 3.0%.

   Other

            Delinquency rates on business loans at a low (short):

            http://www.aei-ideas.org/2013/05/delinquency-rate-for-business-loans-falls-to-lowest-level-ever-in-q1-while-charge-off-rate-falls-to-6-year-low/

            Truck tonnage down slightly in April (short):

            http://www.calculatedriskblog.com/2013/05/ata-trucking-index-decreases-slightly.html

            I ask again, how can housing be up and lumber prices be down? (short):

            http://www.zerohedge.com/news/2013-05-21/housing-unrecovery-here-lumber-enters-bear-market

Politics

  Domestic

Wednesday morning humor (short):

http://www.zerohedge.com/news/2013-05-21/tuesday-humor-story-so-far

For the optimists amongst you (medium):

http://www.usatoday.com/story/opinion/2013/05/20/benghazi-irs-good-news-column/2324597/

The dream and the reality (medium):

http://www.nationalreview.com/article/348870/big-government-dream-and-reality-rich-lowry

And there is this (medium):

http://michellemalkin.com/2013/05/21/obama-irs-union-tea-party-targeting/

And (medium):

http://www.nationalreview.com/article/348687/autocrat-accountants-mark-steyn

More on out pathetic education system (medium):

http://townhall.com/columnists/thomassowell/2013/05/21/wimps-versus-barbarians-n1601497

  International

            Another gem from my favorite eurocrat (3 minute video):

            http://www.zerohedge.com/news/2013-05-21/farage-bashes-tax-advantaged-hypocritical-european-politicians