Friday, October 30, 2020

The Morning Call--Value investing waves the white flag again

 

The Morning Call

 

10/30/20

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/stocks-dollar-bitcoin-jump-bonds-black-gold-dump-ahead-earnings-palooza

 

            Are investor expectations a contrary signal?

            https://www.marketwatch.com/story/most-investors-now-expect-the-us-stock-market-to-crash-like-it-did-in-october-1987-why-thats-good-news-2020-10-27?mod=home-page

 

    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.

                          https://www.advisorperspectives.com/commentaries/2020/10/29/why-debt-to-income-ratios-are-worse-than-they-appear

 

Consumers are gloomy about Christmas spending but retailers are ramping up for a blockbuster season.

https://www.zerohedge.com/markets/americans-are-super-gloomy-about-holiday-spending-industry-ramps-blockbuster-christmas

 

            The coronavirus

 

              Overnight update.

              https://www.zerohedge.com/geopolitical/uk-accelerates-vaccine-trials-us-reports-nearly-90k-new-covid-19-cases-latest-record

                       

                          WHO official cautions against lockdowns.

              https://www.zerohedge.com/medical/who-special-envoy-covid-reiterates-caution-against-lockdowns-primary-virus-plan

 

            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.

 

What I am reading today

 

            Three easy ways to retire wealthier.

            https://www.usatoday.com/story/money/2020/10/28/3-ridiculously-easy-ways-to-retire-wealthier/114485518/

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.

 

 

 

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