The Morning Call
5/12/21
The
Market
Technical
Yesterday was a tough
trading day. However, (1) neither the
DJIA nor the S&P challenged any
support level and (2) they both experienced gap down opens---which will need to
be filled before any lengthy decline can begin.
In short, it was one day. Follow
through.
Tuesday in the
charts.
https://www.zerohedge.com/markets/big-tech-bloodbath-continues-after-biggest-sell-program-history
Fundamental
Headlines
The
Economy
US
Weekly mortgage
applications rose 2.1% while purchase applications were up 0.8%
Month to date retail
chains store sales grew less rapidly than the prior week.
The March JOLTS report
showed job openings totaled 8.1 million versus estimates of 7.5 million.
April CPI came in
at +0.8% versus forecasts of +0.2%; core CPI was up 0.9% versus 0.3%. This means that the Fed is now failing on
both its primary tasks: employment high, inflation low. I tol’ you.
https://www.zerohedge.com/economics/us-core-consumer-prices-explode-higher-fastest-pace-1981
International
March Japanese
flash leading economic indicators were 103.2 versus 98.9 recorded in February.
March EU
industrial production was up 0.1% versus consensus of +0.7%.
The March UK trade
balance was L-2.0 billion versus L-0.9 billion in February; March industrial production
was +1.8% versus +1.0%; March GDP was up 2.1% versus +1.3%; Q1 GDP was -1.5%
versus -1.6%; Q1 business investment was down 11.9% versus up 5.9% in the prior
quarter.
April German CPI
was +0.7%, in line.
Other
The Fed
The Fed abandons
long held inflation policy.
https://thehill.com/opinion/finance/552668-the-fed-does-a-quiet-about-face-on-inflation
Jim Grant: the Fed can’t control inflation.
https://www.zerohedge.com/economics/jim-grant-fed-cant-control-inflation
Biden’s Plan
Weak
jobs report shows limits of stimulus.
https://www.nationalreview.com/2021/05/weak-jobs-report-shows-limits-of-stimulus/
Inflation
It is just starting.
https://www.advisorperspectives.com/commentaries/2021/05/11/inflation-its-just-the-start
The
coronavirus
This is a great
seven minute video excerpt from a TEDx presentation on the negative psychological
impact of the virus on our decision making process. (must watch).
Https://nalert.blogspot.com/2021/05/talk-on-viral-issue-realities-short.html
Bottom line.
What can you do
about high valuations?
https://compoundadvisors.com/2021/what-can-you-do-about-high-valuations
For those who
missed Stan Druckenmiller’s Squawk Box appearance.
The psychology of
QE.
https://www.zerohedge.com/markets/psychology-qe-far-more-important-amount-it
News on Stocks in Our Portfolios
T. Rowe Price (NASDAQ:TROW) declares $1.08/share quarterly dividend,
in line with previous.
Cummins (NYSE:CMI) declares $1.35/share quarterly dividend,
in line with previous.
3M (NYSE:MMM) declares $1.48/share quarterly dividend,
in line with previous.
ADP (NASDAQ:ADP) has
priced public offering of $1B of its 1.70% senior notes due 2028.
What
I am reading today
Three social security
myths.
The next natural disaster is on the
way and we are not prepared.
The world’s largest emitters of
carbon dioxide.
It has never been harder to be an
MLB hitter.
Quote of the day.
Mediterranean diet may protect brain
from Alzheimer’s.
https://www.zerohedge.com/medical/mediterranean-diet-may-protect-brain-alzheimers-disease-study-says
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for Survival’s website (http://investingforsurvival.com/home)
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