The Morning Call--The rebound continues but on weak breadth

 

The Morning Call

 

7/23/21

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/small-caps-slammed-short-squeeze-ammo-dries-bonds-bitcoin-bid

 

            Breadth remains weak.

            https://www.zerohedge.com/markets/weakest-weve-ever-witnessed-morgan-stanley-warns-crashing-breadth-will-result-material

 

            For those who want to get into the weeds.

            https://www.zerohedge.com/markets/watch-gaming-gamma-how-options-metrics-forecast-markets

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          June existing home sales were up 1.4% versus expectations of up 2.0%.

                          https://www.advisorperspectives.com/dshort/updates/2021/07/22/existing-home-sales-second-highest-yoy-increase-on-record

 

The June leading economic indicators rose 0.7% versus estimates of +0.9%.

https://www.advisorperspectives.com/dshort/updates/2021/07/22/cb-leading-economic-index-continued-rise-in-june

 

The July Kansas City Fed manufacturing index came in at 41 versus 30 recorded in June.

 

                        International

 

June UK retail sales rose 0.5% versus predictions of +0.4%; ex fuel, they were up 0.3% versus +0.6%.

 

The July German flash manufacturing PMI was 65.6 versus consensus of 64.2; the flash services PMI was 62.2 versus 59.1; the flash composite PMI was 62.5 versus 60.8.

 

The July EU flash manufacturing PMI was 62.56 versus forecasts of 62.5; the flash services PMI was 60.4 versus 59.5; the flash composite PMI was 60.6 versus 60.0.

 

The July UK flash manufacturing PMI was 60.4 versus projections of 62.5; the flash services PMI was 57.8 versus 62.0; the composite PMI was 57.7 versus 61.7.

 

                        Other

 

            The Fed

 

              A closer look at the surge in M2.

              http://scottgrannis.blogspot.com/2021/07/a-closer-look-at-covid-related-surge-in.html

 

                Inflation

 

              Food prices could rise 10-14% by October.

              https://www.zerohedge.com/personal-finance/grocery-prices-could-rise-10-14-october-grocery-chain-ceo-warns

 

              CEO’s see rising inflation.

              https://www.zerohedge.com/markets/i-see-inflationary-pressure-very-clearly-stellantis-ceo-says-rising-prices-coming-many

 

              Thoughts on inflation (from the academic side.  Who you going to believe?).

              https://www.pragcap.com/three-things-i-think-i-think-learning-from-bad-inflation-takes/

 

 

    News on Stocks in Our Portfolios

 

Genuine Parts (NYSE:GPC): Q2 Non-GAAP EPS of $1.74 beats by $0.20; GAAP EPS of $1.36 misses by $0.20.

Revenue of $4.78B (+25.1% Y/Y) beats by $440M.

 

McDonald's (NYSE:MCD) declares $1.29/share quarterly dividend, in line with previous.

 

What I am reading today

 

            What Cuba would have been without the revolution.

            https://www.adamsmith.org/blog/what-would-cuba-have-been-without-the-revolution

 

            The environmental argument against the penny.

            https://politicalcalculations.blogspot.com/2021/07/environmental-arguments-against-penny.html#.YPm3_uhKiUk

 

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