The Morning Call
10/30/20
The
Market
Technical
Thursday in the
charts.
Are investor
expectations a contrary signal?
Fundamental
Headlines
The
Economy
US
September pending home sales fell 2.2% versus
consensus of +3.4%.
September personal
income rose 0.9% versus projections of +0.4%; personal spending was up 1.4%
versus +1.0%; the PCE price index was up 0.2% versus +0.3%; core PCE was +0.2%,
in line.
International
The September Japanese
unemployment rate was 3.0% versus estimates on 2.9%; preliminary industrial
production was up 1.0% versus +2.5%; YoY housing starts fell 9.8% versus -8.6%.
September German
retail sales were down 2.2% versus forecasts of -0.8%; Q3 GDP growth came in at
+8.2% versus +7.3%.
The September EU
unemployment rate was 8.3%, in line; Q3 GDP growth was 12.7% versus 9.4%; CPI
was +0.2%, in line.
Other
Debt to income ratios are worse than they appear.
Consumers are
gloomy about Christmas spending but retailers are ramping up for a blockbuster
season.
The
coronavirus
Overnight update.
WHO
official cautions against lockdowns.
Bottom
line. Value investing waves the white flag---again.
https://alephblog.com/2020/10/28/value-investing-waves-the-white-flag-again/
Multiple fears gripping the Market.
https://www.zerohedge.com/markets/fears-another-february-are-gripping-market
News on Stocks in Our Portfolios
T.
Rowe Price (NASDAQ:TROW):
Q3 Non-GAAP EPS of $2.55 beats by $0.12; GAAP EPS of $2.73 beats
by $0.21.
Revenue
of $1.6B (+11.9% Y/Y) beats by $30M.
T. Rowe Price (NASDAQ:TROW) declares $0.90/share quarterly dividend, in line with
previous.
Mastercard (NYSE:MA):
Q3 Non-GAAP EPS of $1.60 misses by $0.06; GAAP EPS of $1.51 misses
by $0.14.
Revenue
of $3.84B (-13.7% Y/Y) misses by $110M.
General
Dynamics (NYSE:GD):
Q3 GAAP EPS of $2.90 beats by $0.04.
Revenue
of $9.43B (-3.4% Y/Y) misses by $220M.
Automatic
Data Processing (NASDAQ:ADP):
FQ1 Non-GAAP EPS of $1.41 beats by $0.43; GAAP EPS of $1.40 beats
by $0.44.
Revenue
of $3.5B (flat Y/Y) beats by $230M.
United
Parcel Service (NYSE:UPS):
Q3 Non-GAAP EPS of $2.28 beats by $0.39; GAAP EPS of $2.24 beats
by $0.40.
Revenue
of $21.24B (+15.9% Y/Y) beats by $980M.
C.H.
Robinson Worldwide (NASDAQ:CHRW):
Q3 GAAP EPS of $1.00 beats by $0.03.
Revenue
of $4.22B (+9.3% Y/Y) beats by $270M.
Microsoft (NASDAQ:MSFT):
FQ1 GAAP EPS of $1.82 beats by $0.28.
Revenue
of $37.2B (+12.4% Y/Y) beats by $1.42B.
Franklin
Resources (NYSE:BEN):
Q4 Non-GAAP EPS of $0.56 misses by $0.12; GAAP EPS of $0.15 misses
by $0.45.
Revenue
of $1.71B (+20.4% Y/Y) beats by $240M.
Cummins (NYSE:CMI): Q3
GAAP EPS of $3.36 beats by $0.88.
Revenue
of $5.12B (-11.3% Y/Y) beats by $620M.
Sherwin-Williams (NYSE:SHW):
Q3 Non-GAAP EPS of $8.29 beats by $0.49; GAAP EPS of $7.66 beats
by $0.39.
MSC
Industrial Direct (NYSE:MSM):
FQ4 Non-GAAP EPS of $1.09 beats by $0.15; GAAP EPS of $0.94 misses
by $0.02.
Revenue
of $747.7M (-11.3% Y/Y) in-line.
3M (NYSE:MMM):
Q3 Non-GAAP EPS of $2.43 beats by $0.16; GAAP EPS of $2.43 beats
by $0.18.
Revenue
of $8.4B (+5.1% Y/Y) beats by $20M.
Apple (NASDAQ:AAPL):
Q4 GAAP EPS of $0.73 beats by $0.03.
Revenue
of $64.69B (+1.0% Y/Y) beats by $1.36B.
Altria (NYSE:MO): Q3 Non-GAAP EPS of $1.19 beats by $0.03; GAAP EPS
of -$0.51 misses by $1.66.
Revenue
of $5.67B (+4.8% Y/Y) beats by $140M.
AbbVie (NYSE:ABBV):
Q3 Non-GAAP EPS of $2.83 beats by $0.06; GAAP EPS of $1.29 misses
by $0.13.
Revenue
of $12.9B (+52.1% Y/Y) beats by $190M.
AbbVie (NYSE:ABBV) declares $1.30/share quarterly dividend, 10.2% increase from prior dividend of $1.18.
Exxon
Mobil (NYSE:XOM): Q3
Non-GAAP EPS of -$0.18 beats by $0.06; GAAP EPS of -$0.15 beats
by $0.11.
Revenue
of $46.2B (-29.0% Y/Y) misses by $2.16
Exxon Mobil (NYSE:XOM) declares
$0.87/share quarterly dividend, in line with previous.
Exxon laying off 15% of its work
force.
https://www.zerohedge.com/markets/exxon-firing-15-its-workers-keep-dividend
W.W. Grainger (NYSE:GWW) declares $1.53/share quarterly dividend, in line with
previous.
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