Thursday, April 29, 2021

The Morning Call--The cornucopia of money and spending

 

The Morning Call

 

4/29/21

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/markets/dollar-dumps-2-month-lows-ether-record-highs-after-powell-promises-moar

 

            Yields are back.

            https://www.zerohedge.com/the-market-ear/yields-1

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

The initial Q1 GDP growth estimate was +6.4% versus forecasts of +6.1%; the PCE price index was +3.5%.

 

Weekly mortgage applications fell 2.5% while purchase applications were down 4.8%.

 

Weekly jobless claims came in at 553,000 versus expectations of 549,000.

 

The March trade balance was -$90.6 billion versus -$87.1 billion in February.

 

                        International

 

                          March Japanese retail sales rose 1.2% versus +3.1% in February.

 

March German unemployment was 4.5%, in line with February’s report;  April CPI was +0.7% versus consensus of +0.5%; May consumer confidence declined 8.8% versus down 3.5%.

                       

April EU economic sentiment was reported at 110.3 versus predictions of 102.2; industrial sentiment was 10.7 versus 4.0; services sentiment was 2.1 versus -8.1; consumer confidence was -8.6, in line.

 

                        Other

 

                          April regional Fed manufacturing overview.

                          https://www.advisorperspectives.com/dshort/updates/2021/04/27/april-regional-fed-manufacturing-overview

 

The Fed

           

Aside from a busy day for earnings reports, the lead headline was the results of the latest FOMC meeting.  Of course, there was no real news since nothing  changed.  Interest rates remain low, QE running full blast and Powell et al heads are still in the clouds.  Here is the language of the statement released after the meeting along with some analysis, if you like repetition.

              https://www.zerohedge.com/economics/optimistic-fed-signals-strengthening-economy-shrugs-inflation-transitory

 

            Fiscal Policy

 

And speaking of having their heads in the clouds (which I wish I weren’t), Biden delivered his first address the congress.  The most surprising thing was that he sounded coherent through the entire speech.  Not so surprising was the plan to spend trillions.  Irrespective of whether you agree with the need for these massive social spending programs, without offsetting spending reductions or increased taxes, the end result will be slower economic growth.  That said, like most political speeches, this one was more publicity than anything else.  Let’s see what happens in real life.

           

    News on Stocks in Our Portfolios

 

W.W. Grainger (NYSE:GWW) declares $1.62/share quarterly dividend5.9% increase from prior dividend of $1.53.

 

Exxon Mobil (NYSE:XOM) declares $0.87/share quarterly dividend, in line with previous.

 

Automatic Data Processing (NASDAQ:ADP): FQ3 Non-GAAP EPS of $1.89 beats by $0.11; GAAP EPS of $1.90 beats by $0.13.

Revenue of $4.1B (+1.5% Y/Y) beats by $20M.

 

General Dynamics (NYSE:GD): Q1 GAAP EPS of $2.48 beats by $0.18.

Revenue of $9.39B (+7.3% Y/Y) beats by $490M.

 

Qualcomm (NASDAQ:QCOM): Q2 Non-GAAP EPS of $1.90 beats by $0.23; GAAP EPS of $1.53 beats by $0.15.

 

Revenue of $7.94B (+52.7% Y/Y) beats by $320MApple (NASDAQ:AAPL): FQ2 GAAP EPS of $1.40 beats by $0.42.

Revenue of $89.6B (+53.7% Y/Y) beats by $12.31B.

Mastercard (NYSE:MA): Q1 Non-GAAP EPS of $1.74 beats by $0.18; GAAP EPS of $1.83 beats by $0.25.

Revenue of $4.2B (+5.0% Y/Y) beats by $150M.

 

T. Rowe Price (NASDAQ:TROW): Q1 Non-GAAP EPS of $3.01 beats by $0.07; GAAP EPS of $3.17 beats by $0.17.

Revenue of $1.83B (+25.3% Y/Y) beats by $20M.

 

Altria (NYSE:MO): Q1 Non-GAAP EPS of $1.07 beats by $0.02; GAAP EPS of $0.77 misses by $0.23.

Revenue of $4.88B (-3.4% Y/Y) misses by $110M.

 

What I am reading today

 

           

 

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

 

 

 

No comments:

Post a Comment