The Morning Call--Fast economic growth but no profits

 

The Morning Call

 

6/2/21

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/nasdaq-dips-russell-rips-tail-risk-insurance-costs-soar

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications fell 4.0% while purchase applications were down 3.1%

 

Month to date retail chain store sales grew slightly less rapidly than in the prior week.

 

                          April construction spending rose 0.2% versus expectations of +0.5%.

                          https://www.calculatedriskblog.com/2021/06/construction-spending-increased-02-in.html

 

The final May manufacturing PMI came in at 62.1 versus projections of 61.5.

https://www.advisorperspectives.com/dshort/updates/2021/06/01/may-markit-manufacturing-survey-record-in-orders-supply-chain-still-affected

 

The May ISM manufacturing index was reported at 61.2 versus consensus of 60.9.

https://www.calculatedriskblog.com/2021/06/ism-manufacturing-index-increased-to.html

 

The May Dallas Fed manufacturing index was 34.9 versus 37.2 in April.

                          https://www.advisorperspectives.com/dshort/updates/2021/06/01/may-dallas-fed-manufacturing

 

                        International

 

                          April German retail sales declined 5.5% versus predictions of -2.0%.

 

                          April EU PPI came in at 1.0% versus forecasts of +0.9%.

 

                        Other

 

                          Update on framing lumber prices.

                          https://www.calculatedriskblog.com/2021/06/update-framing-lumber-prices-down-from.html

 

                          US meat supply under threat.

                          https://www.zerohedge.com/commodities/cyber-attack-hits-jbs-global-meat-processing-operations

 

                          OPEC agreed to increase production in July.

                          https://www.zerohedge.com/markets/opec-agrees-boost-oil-output-july-demand-rises

 

            The Fed

 

              Bill Gross on Fed policy.

              https://www.zerohedge.com/economics/bill-gross-fed-cant-keep-its-pedal-metal-much-longer

 

            Inflation

 

              The inflation reset.

              https://ritholtz.com/2021/06/the-inflation-reset/

 

              Counterpoint.

              https://www.zerohedge.com/markets/reset-required-why-morgan-stanley-sees-pain-next-6-months

 

     Bottom line.

 

            Investor amnesia.

            https://investoramnesia.com/2021/05/23/times-of-fraud-mania-chicanery/

 

            Fast economic growth without profit expansion (must read).

            https://www.zerohedge.com/markets/margin-story-fast-economic-growth-without-profits

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            The irresponsibility of socially responsible corporations.

            https://www.washingtonexaminer.com/opinion/op-eds/the-irresponsibility-of-the-socially-responsible-corporation

 

            This astrophysist is not impressed with current UFO sightings.

            https://www.nytimes.com/2021/05/30/opinion/ufo-sightings-report.html

 

 

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