Thursday, April 8, 2021

The Morning Call---All systems Go at the Fed

 

The Morning Call

 

4/8/21

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/markets/small-caps-cryptos-clubbed-bonds-buck-bounce

 

            More tech giants joining the breakout.

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

 

            As NASDAQ nears high.

            https://www.zerohedge.com/the-market-ear/c82148a2oy

 

            Is oil trying to tell us something?

            https://www.zerohedge.com/the-market-ear/cd0tit6qhg

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

                               

 Weekly jobless claims were reported at 744,000 versus consensus of 680,000.

 

The February trade balance was -$71.1 billion  versus estimates of -           $70.5 billion.

                          https://www.calculatedriskblog.com/2021/04/trade-deficit-increased-to-711-billion.html

 

                        International

 

                          February German factory orders rose 1.2%, in line.

 

                          February EU PPI was up 0.5% versus expectations of up 0.6%.

 

The March EU construction PMI came in at 50.1 versus 45.0 in February; the March German construction PMI was 47.5 versus 41.0 in February; the March UK construction PMI was 61.7 versus 53.3 in February.

 

                        Other

 

                          Consumer credit explodes higher.

                          https://www.zerohedge.com/markets/biggest-beat-record-consumer-credit-explodes-higher-americans-rediscover-their-love-credit

           

                          The latest nowcasts anticipate a strong US Q1.

                          http://www.capitalspectator.com/us-gdp-nowcasts-continue-to-anticipate-stronger-growth-for-q1/

 

                          A global K shaped recovery

                          https://www.nytimes.com/2021/04/06/business/economy/covid-world-economy.html

 

            The Fed

 

Yesterday, the FOMC released the minutes of its latest meeting---which didn’t deviate from the current narrative, i.e., the Fed is cautiously optimistic about the economy but not so much that it is considering a change in interest rates or its bond buying program.

              https://www.zerohedge.com/markets/fomc-minutes-signal-optimism-fiscal-plans-some-officials-fear-stability-risks

 

The ECB also released the minutes of its latest General Council meeting.  Like the Fed, nothing has changed---more low rates and QE.

  https://www.zerohedge.com/markets/ecb-minutes-here-are-main-highlights

 

              Markets beginning to price in rate hike next year.

              https://www.ft.com/content/3d3af68a-f25f-4cd5-902d-2b1c21b8cadb

 

            Biden’s Plan

 

              A negative view.

              https://www.washingtontimes.com/news/2021/apr/5/bidens-proposed-infrastructure-spending-is-wastefu/

 

              The bloated infrastructure plan.

              https://www.city-journal.org/bidens-bloated-infrastructure-proposal

 

              This is a good pro/con discussion.

              https://reason.com/video/2021/04/05/does-national-debt-still-matter-americas-greatest-gamble/

 

            Inflation

 

              The market’s expectation for inflation and real rates over the next five years.

              http://econbrowser.com/archives/2021/04/the-markets-expectations-of-inflation-over-the-next-five-years

 

            The coronavirus

 

              Where the virus was the deadliest for seniors.

              https://politicalcalculations.blogspot.com/2021/04/where-was-covid-19-deadliest-for-us.html#.YG3x-51KiUk

 

              The tyranny of ‘enlightened’ experts.

              https://www.zerohedge.com/political/tyranny-enlightened-experts

 

            Today’s Investment Lesson

 

              The stock market as a discounting mechanism.       

              https://sentimentrader.com/blog/manufacturing-soars-another-lesson-in-the-stock-market-as-a-discounting-mechanism/

 

                Bottom line.

 

              More on valuations.

              https://www.advisorperspectives.com/dshort/updates/2021/04/06/is-the-stock-market-cheap

 

  Another family office appears to be blowing up.

  https://www.zerohedge.com/markets/another-family-office-blowing-jpm-dumps-9mm-share-block-academy-sports

 

    News on Stocks in Our Portfolios

 

Automatic Data Processing (NASDAQ:ADP) declares $0.93/share quarterly dividend, in line with previous.

 

 

What I am reading today

 

            Kiev forces primed for attack.

            https://www.zerohedge.com/geopolitical/kievs-forces-are-primed-attack-if-they-can-overcome-their-own-minefields

 

            This is what is happening at the border.

           

 

            Time warps.

            https://www.brainpickings.org/2013/07/15/time-warped-claudia-hammond/

 

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