The Morning Call-$6 trillion?

 

The Morning Call

 

5/27/21

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/markets/small-caps-surge-amid-massive-short-squeeze-dollar-dead-cat-bounces

 

            Bond investors on hold.

            http://www.capitalspectator.com/treasury-markets-reflation-pricing-is-on-hold-for-now/

 

            The inflation adjusted yield of the S&P is at a 50 year low.

            https://sentimentrader.com/blog/the-sps-inflation-adjusted-yield-just-plunged-to-a-record-low/

 

            Trends in the markets.

            https://compoundadvisors.com/2021/tuesday-trends-5-25-21

 

            Gold reversal.

            https://www.zerohedge.com/the-market-ear/cabsycd4cd

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly jobless claims totaled 406,000 versus predictions of 425,000.

                          https://www.zerohedge.com/personal-finance/despite-initial-claims-drop-almost-16-million-americans-remain-government-dole

 

The 2^nd estimate of Q1 GDP growth came in at 6.4% versus forecasts of 6.5%; the PCE price deflator was +3.7% versus +3.5%; core PCE deflator was +2.5% versus +2.3%.

                          https://www.zerohedge.com/economics/q1-gdp-stuck-64-after-revision-core-pce-comes-hotter-expected

 

April durable goods orders fell 1.3% versus expectations of +0.7%; ex transportation they were +1.0% versus +0.8%.

                          https://www.zerohedge.com/economics/us-durable-goods-new-orders-unexpectedly-tumble-april

 

                        International

 

June German consumer confidence was reported at -7 versus consensus of -5.2.

 

                        Other

           

                          The mortgage delinquency rate fell in April.

                          https://www.calculatedriskblog.com/2021/05/freddie-mac-mortgage-serious.html

 

            The Fed

 

              Markets no longer see Jackson Hole as tapering D Day.

              https://www.zerohedge.com/markets/suddenly-market-no-longer-sees-jackson-hole-taper-d-day

 

              Systemic risk abounds.

              https://www.zerohedge.com/markets/systemic-risks-abound

 

            Fiscal Policy

 

              The rise and rise of government debt.

              https://www.realclearmarkets.com/articles/2021/05/26/the_rise_and_rise_of_debt_government_778665.html

 

            Biden’s Plan

 

              Biden unveils $6 trillion 2022 budget.

              https://www.zerohedge.com/political/biden-unveils-6-trillion-budget-will-raise-federal-spending-highest-post-ww2-level

 

            The coronavirus

 

              Biggest failure of medical leadership.

              https://www.zerohedge.com/covid-19/johns-hopkins-prof-half-americans-have-natural-immunity-dismissing-it-biggest-failure

 

     Bottom line.

 

            Today’s stock market illusions.

            https://www.advisorperspectives.com/commentaries/2021/05/25/todays-stock-market-illusions

 

            How to defend against inflation (must read).

            https://www.ft.com/content/88ebab48-edc7-49f1-b535-8c546988d4fd

 

 

    News on Stocks in Our Portfolios

 

Williams-Sonoma (NYSE:WSM): Q1 Non-GAAP EPS of $2.93 beats by $1.08; GAAP EPS of $2.90 beats by $0.99.

Revenue of $1.75B (+41.1% Y/Y) beats by $220M.

 

Medtronic (NYSE:MDT): Q4 Non-GAAP EPS of $1.50 beats by $0.08; GAAP EPS of $1.00 misses by $0.04.

Revenue of $8.19B (+37% Y/Y) beats by $60M.

 

Medtronic (NYSE:MDT) declares $0.63/share quarterly dividend, 8.6% increase from prior dividend of $0.58.

 

Cisco (NASDAQ:CSCO) declares $0.37/share quarterly dividend, in line with previous.

 

BlackRock (NYSE:BLK) declares $4.13/share quarterly dividend, in line with previous.

 

What I am reading today

 

            The secret psychology of sneaker colors.

            https://www.nytimes.com/2021/05/24/style/sneaker-color-psychology.html

           

 

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