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

 

The Morning Call

 

2/10/21

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/stocks-surge-longest-win-streak-6-months-dollar-dives

 

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

            https://www.zerohedge.com/markets/never-seen-anything-junk-bond-yields-slide-below-4-first-time-ever-record-buying-spree

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

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.

                          https://www.advisorperspectives.com/dshort/updates/2021/02/09/job-openings-labor-turnover-december-2020-update

 

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

https://www.advisorperspectives.com/dshort/updates/2021/02/09/nfib-small-business-survey-drops-in-january

 

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

 

                        International

                          

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.

 

                        Other

 

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

                          https://www.zerohedge.com/the-market-ear/ceidqcfoiz

 

            The Fed

 

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

              https://www.zerohedge.com/markets/china-injects-record-amount-loans-january

            Bottom line.

 

              The problem with defining risk.

              https://blog.validea.com/what-is-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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