The Morning Call--Doubts grow about Biden's infrastructure plan

 

The Morning Call

 

4/7/21

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/bonds-bullion-bid-dollar-skids-biden-bonanza-hopes-fade

 

            Look at VIX speculators.

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

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly mortgage applications fell 5.1% while purchase applications were                         off 4.6%.

                             

The February jobs opening (JOLTS) report showed available jobs of 7.4 million versus expectations of 7.0 million.

                              https://www.calculatedriskblog.com/2021/04/bls-job-openings-increased-to-74.html

 

                        International

 

The February Japanese leading economic indicators came in at 99.7 versus 98.5 in January.

 

The March final German services PMI was 51.5 versus estimates of 50.8; the composite PMI was 57.3 versus 56.8; the March final EU services PMI was 49.6 versus 48.8; the composite PMI was 53.2 versus 52.8; the final UK March services PMI was 56.3 versus 56.8; the composite PMI was 56.4 versus 56.6.

 

                        Other

 

                          Don’t mistake rapid job gains with for a strong labor market.

                          https://www.advisorperspectives.com/commentaries/2021/04/06/dont-mistake-rapid-jobs-gains-for-a-strong-labor-market

 

                                                  UBS predicts 80,000 retail stores will close in next five years.

                          https://www.zerohedge.com/markets/ubs-predicts-80000-retail-stores-will-close-five-years

 

                                  Beijing orders banks to curtail loan growth for rest of 2021.

                                  https://www.zerohedge.com/markets/china-credit-impulse-set-collapse-beijing-orders-banks-curtail-loan-growth-rest-2021

                       

 

                        The Fed

 

              When and where to exit.

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

 

 

                Inflation

 

                    Booming prices.

               http://scottgrannis.blogspot.com/2021/04/booming-prices.html

 

               Counterpoint

                https://alhambrapartners.com/2021/04/04/weekly-market-pulse-buy-the-rumor-sell-the-news/

 

                    Somewhere in between.

               http://www.capitalspectator.com/will-the-fed-be-fored-to-raise-rates-earlier-than-expected/

 

                  A trillion here, a trillion there.

              https://www.zerohedge.com/political/trillion-here-trillion-there

 

 

                Biden’s Plan

 

                  Yields slide as doubts grow about Biden’s infrastructure plan.

              https://www.zerohedge.com/markets/yields-slide-doubts-grow-over-biden-infrastructure-plan

 

                  Can the US borrow its way to higher economic growth?

              https://www.zerohedge.com/markets/can-us-borrow-its-way-higher-growth-spoiler-no

 

                The coronavirus

 

              Why the silence in the face of the Covid tyranny?

              https://www.aier.org/article/why-the-silence-in-the-face-of-covid-tyranny/

 

              The virus has made where you live even more important.

              https://www.bloomberg.com/opinion/articles/2021-04-05/covid-has-made-where-you-live-matter-even-more?utm_campaign=socialflow-     organic&cmpid%3D=socialflow-twitter-view&utm_source=twitter&utm_content=view&utm_medium=social&sref=loFkkPMQ

 

           

            Bottom line.

 

              March dividends by the numbers.

              https://politicalcalculations.blogspot.com/2021/04/dividends-by-numbers-in-march-2021.html#.YGyOiZ1KiUk

 

                  More on valuations.

               https://www.advisorperspectives.com/dshort/updates/2021/04/06/regression-to-trend-another-look-at-long-term-market-performance

 

 

    News on Stocks in Our Portfolios

 

Paychex (NASDAQ:PAYX): FQ3 Non-GAAP EPS of $0.96 beats by $0.04; GAAP EPS of $0.97 beats by $0.05.

Revenue of $1.11B (-2.6% Y/Y) in-line.

 

MSC Industrial Direct (NYSE:MSM): Q2 Non-GAAP EPS of $1.03 beats by $0.01; GAAP EPS of $0.32 misses by $0.64.

Revenue of $774M (-1.5% Y/Y) misses by $4.06M.

 

What I am reading today

 

            The UK and EU pledge to back Ukraine amidst Russian military buildup.

            https://www.theguardian.com/world/2021/apr/05/eu-sounds-alarm-at-russian-troops-ukraine-border-moves

 

            Russia begins massive ‘combat readiness’ exercise.

            https://www.zerohedge.com/geopolitical/russias-army-begins-massive-combat-readiness-inspection-ukraine-tensions-soar

 

            More reasons for optimism.

            https://www.adamsmith.org/blog/reasons-for-optimism-space

 

 

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