Wednesday, February 10, 2021

The Morning Call---Junk bond yields fall to record low


The Morning Call




The Market




            Tuesday in the charts.



            Junk bond yields fall below 4% for first time ever (can you say, ‘speculative froth’?)







              The Economy




Weekly mortgage applications fell 4.1% while purchase applications were down 4.7%.


                          Month to date retail chain store sales improved from the prior week.


The December job openings report (JOLTS) show 6.64 million available jobs versus estimates of 6.5 million.



The January new business optimism index came in at 95.0 versus 95.9 in December.


                          January CPI was +0.3%, in line; core inflation was 0 versus +0.2%.




December Japanese YoY average cash earnings declined 3.2 versus -1.8%    reported in November; January YoY machine tool orders were up 9.7% versus up 9.9% in December; January PPI was +0.3% versus +0.4%.


The December German trade balance was +E16.1 billion versus estimates of +E15.9 billion; December CPI was +0.8%, in line.


January CPI was +0.1%, in line; January YoY vehicle sales were up 30.0% versus +6.4% in December.




                          Copper comes roaring back (cough, cough, inflation).



            The Fed


              The Bank of China is pumping beaucoup money into its financial system.


            Bottom line.


              The problem with defining risk.



    News on Stocks in Our Portfolios


Mastercard (NYSE:MA) declares $0.44/share quarterly dividend, in line with previous.


Cisco (NASDAQ:CSCO): Q2 Non-GAAP EPS of $0.79 beats by $0.04; GAAP EPS of $0.60 beats by $0.02.

Revenue of $12B (-0.1% Y/Y) beats by $100M.


Cisco (NASDAQ:CSCO) declares $0.37/share quarterly dividend, 2.8% increase from prior dividend of $0.36.


Cummins (NYSE:CMI) declares $1.35/share quarterly dividend , in line with previous.


What I am reading today




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