Morning Journal---The latest from Reinhart and Rogoff

News on Stocks in Our Portfolios

Fastenal misses by $0.02, misses on revenue

·         Fastenal (FAST): Q4 EPS of $0.33 misses by $0.02.

·         Revenue of $813.76M (+7.5% Y/Y) in-line.

Linear Technology Corporation beats by $0.06, misses on revenue

• Linear Technology Corporation (LLTC): Q3 EPS of $0.51 beats by $0.06.
• Revenue of $334.6M misses by $0.15M.

Economics

   This Week’s Data

            The International Council of Shopping Centers reported weekly sales of major retailers fell 1.0% versus the prior week but up 1.3% versus the comparable period a year ago; Redbook Research reported month to date retail chain store sales were up 2.9% on a year over year basis.

            November business inventories rose 0.4% versus expectations of +0.3%; even better, sales were up 0.8%.

            Weekly mortgage applications were up 11.9% while purchase applications increased by 12.0%

            December PPI came in +0.4%, in line with consensus; ex food and energy, it was up 0.3% versus estimates of +0.1%.

            The New York Fed’s January manufacturing index was 12.51 versus forecasts of 3.30.

   Other

            The Baltic dry index continues to plunge (short):

            http://www.zerohedge.com/news/2014-01-14/baltic-dry-continues-collapse-worst-slide-financial-crisis

            More fallout from QEInfinity (medium):

            http://www.nakedcapitalism.com/2014/01/wolf-richter-feds-wealth-effect-quack-medicine-hurts-renters-consumption.html

            The latest from Reinhart and Rogoff (medium and a must read):

            http://www.zerohedge.com/news/2014-01-14/guest-post-europe%E2%80%99s-future-inflation-and-wealth-taxes

            The latest from Dallas Fed chief Fisher (long but a must read):

            http://www.zerohedge.com/news/2014-01-14/feds-fisher-says-investors-have-beer-goggles-liquidity-joins-goldman-stock-correctio

            Why Italian and Spanish bonds are at record low yields (short):

            http://www.zerohedge.com/news/2014-01-14/why-italian-and-spanish-bonds-are-near-record-low-yields-one-greater-fool-chart

            For the economic bears (10 charts):

            http://advisorperspectives.com/dshort/guest/Ted-Kavadas-140115-Disturbing-Charts.php

Politics

  Domestic

  International War Against Radical Islam

            Confusion over the new nuclear deal between Iran and the major powers (medium):

            http://www.latimes.com/world/worldnow/la-fg-wn-iran-nuclear-side-deal-20140113,0,4116168.story#axzz2qPOZwfCF

            Presented without comment (short):

            http://www.zerohedge.com/news/2014-01-14/us-foreign-policy-hits-new-lows-after-israel-mocks-john-kerry