The Morning Call--Telling the truth is always a problem

 

The Morning Call

 

5/5/21

 

The Market

         

    Technical

 

            Tuesday in the charts

            https://www.zerohedge.com/markets/may-fourth-be-not-doves

 

            Hedge funds are selling, retail is buying and buybacks are soaring.

            https://www.zerohedge.com/markets/selling-frenzy-hedge-funds-hits-record-offset-surge-buybacks

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications fell 0.9% while purchase applications     dropped 2.5%.

 

                          Month to date retail chain store sales grew faster than in the prior period.

                                   

                          The March trade balance was -$74.4 billion, in line with estimates.

                          https://www.advisorperspectives.com/dshort/updates/2021/05/04/march-trade-deficit-at-74-5b-5-6-more-than-february

 

                          March factory orders rose 1.1% versus expectations of +1.3%.

                       

The April ADP private payroll report showed job increases of 742,000      versus projections of 800,000.

                          https://www.zerohedge.com/personal-finance/over-8-million-jobs-below-pre-covid-levels-adp-employment-data-disappoints-april

 

                        International

 

The March EU PPI was up 1.1%, in line; the April services PMI was 50.5 versus 50.3; the April composite PMI was 53.8 versus 53.7.

 

The April German services PMI was 49.9 versus forecasts of 50.3; the April composite PMI was 53.8 versus 53.7.

 

                        Other

                       

                          March median household income.

                          https://politicalcalculations.blogspot.com/2021/05/median-household-income-in-march-2021.html#.YJGLA7VKiUk

 

                          April vehicle sales highest since 2005.

                          https://www.calculatedriskblog.com/2021/05/april-vehicles-sales-increased-to-1851.html

 

                          Big government versus ‘trickle down’ economics.

                          https://danieljmitchell.wordpress.com/2021/04/30/big-government-vs-trickle-down-economics/

 

                          New results on working from home.

                          https://marginalrevolution.com/marginalrevolution/2021/05/new-results-on-work-from-home.html

 

                                  Global manufacturing activity rose in April.

                          https://www.markiteconomics.com/Public/Home/PressRelease/822c6852695d4687bd06239011648b80

 

                The Fed

 

Telling the truth is always a problem when the ruling class wants us to believe another narrative.

 

              Yellen says rates may have to rise.

              https://www.ft.com/content/049f4a79-abff-4a6c-a7c1-13409e8f63ae

 

                  Then walks it back.

              https://www.zerohedge.com/markets/stocks-extend-losses-after-yellen-says-rates-will-have-rise

               

 

            Biden’s Plan  

 

              Fair share.

              http://gregmankiw.blogspot.com/2021/04/fair-share.html

 

             Biden’s ‘step up’ estate tax rule would cost the rich billions.

              https://www.bloomberg.com/news/articles/2021-05-04/biden-tax-rule-would-rip-billions-from-biggest-fortunes-at-death?srnd=premium&sref=loFkkPMQ

 

            Inflation

 

              Concerns continue to increase.

              https://www.zerohedge.com/markets/banks-start-freaking-out-about-soaring-inflation-which-may-not-be-transitory

 

                  Sam Zell buying gold.

              https://www.zerohedge.com/markets/sam-zell-buys-gold-hedge-against-surging-inflation-debasement-dollar

               

 

     Bottom line.

 

            Regression to trend.

            https://www.advisorperspectives.com/dshort/updates/2021/05/04/regression-to-trend-another-look-at-long-term-market-performance

 

    News on Stocks in Our Portfolios

 

Franklin Resources (NYSE:BEN): Q2 Non-GAAP EPS of $0.79 beats by $0.04; GAAP EPS of $0.74 beats by $0.07.

Revenue of $2.08B (+58.8% Y/Y) beats by $50M.

 

Emerson Electric (NYSE:EMR): Q1 Non-GAAP EPS of $0.97 beats by $0.07; GAAP EPS of $0.93 beats by $0.07.

Revenue of $4.43B (+6.7% Y/Y) beats by $70M.

 

Emerson Electric (NYSE:EMR) declares $0.505/share quarterly dividend, in line with previous.

 

What I am reading today

 

           

 

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