The Morning Call--Still buying the dip

 

The Morning Call

 

7/28/21

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/stocks-dollar-bond-yields-tumble-china-chunder-mask-mandate-miasma

 

            Real yields hit record low.

            https://www.ft.com/content/71d6661d-7a62-4a5f-959b-4cb2f1e94d68

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications were up 5.7% but purchase applications were down 1.6%.

 

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

 

The May Case Shiller home price index rose 2.1% versus +2.2% in April.

https://www.advisorperspectives.com/dshort/updates/2021/07/27/may-s-p-case-shiller-home-price-index-national-index-up-16-6-yoy-continues-record-highs

 

July consumer confidence came in at 129.1 versus consensus of 123.9.

https://www.advisorperspectives.com/dshort/updates/2021/07/27/consumer-confidence-mostly-unchanged-in-july

 

The July Richmond Fed manufacturing index was reported at 27 versus 26 in June.

                          https://www.advisorperspectives.com/dshort/updates/2021/07/27/richmond-fed-manufacturing-continued-strength-in-july

 

                        International

                         

The May Japanese leading economic indicators were reported at 102.6 versus 103.8 in April.

 

August German consumer confidence fell 0.3% versus estimates of +1.0%.

                       

                        Other

 

                          Washington is ignoring our productivity problem.

                          https://thehill.com/opinion/finance/564810-as-inflation-and-government-debt-surge-washington-is-ignoring-our-most

 

                          Speaking of which.

                          https://marginalrevolution.com/marginalrevolution/2021/07/the-1991-project.html

 

                          Economic growth is slowing.

                          http://www.capitalspectator.com/introducing-the-us-macro-trend-index/#more-16420

 

            The Fed

 

              The Fed’s blind spot.

              https://blogs.cfainstitute.org/investor/2021/07/20/the-feds-blindspot-on-global-inflation-drivers/

 

An open letter to the Fed.  The author accurately outlines the problems the Fed has created but then excuses them from correcting the problems.

https://www.zerohedge.com/markets/creator-bond-vix-pens-open-letter-fed

 

            Inflation

 

              Is inflation merely catching up?  This author says no. (must read).

              https://www.aier.org/article/is-inflation-merely-catching-up/

 

            China

 

              What is behind China’s regulatory crackdown?

              https://www.bloomberg.com/news/articles/2021-07-26/stock-market-china-doesn-t-care-how-much-money-investors-lose?sref=loFkkPMQ

 

              More.

              https://www.bloomberg.com/news/articles/2021-07-27/china-s-crackdown-stocks-extend-declines-into-a-third-day?sref=loFkkPMQ

 

            The coronavirus

 

              A tale of two narratives.

              https://www.zerohedge.com/covid-19/tale-two-narratives

 

              The costs of the lockdown.

              https://www.zerohedge.com/covid-19/zero-covid-experts-put-grandkids-risk

 

     Bottom line

 

            Buy the dip?

            https://alhambrapartners.com/2021/07/25/weekly-market-pulse-buy-the-dip-if-you-can/

 

    News on Stocks in Our Portfolios

 

Microsoft (NASDAQ:MSFT): Q4 Non-GAAP EPS of $2.17 beats by $0.25.

Revenue of $46.2B (+21.5% Y/Y) beats by $1.9B.

Automatic Data Processing (NASDAQ:ADP): Q4 Non-GAAP EPS of $1.20 beats by $0.06; GAAP EPS of $1.26 beats by $0.13.

Revenue of $3.7B (+9.5% Y/Y) beats by $20M.

 

General Dynamics (NYSE:GD): Q2 GAAP EPS of $2.61 beats by $0.07.

Revenue of $9.22B (-0.4% Y/Y) misses by $100M.

 

McDonald's (NYSE:MCD): Q2 Non-GAAP EPS of $2.37 beats by $0.25; GAAP EPS of $2.95 beats by $0.84.

Revenue of $5.89B (+56.6% Y/Y) beats by $320M.

 

Apple (NASDAQ:AAPL): Q3 GAAP EPS of $1.30 beats by $0.29.

Revenue of $81.4B (+36.4% Y/Y) beats by $7.93B.

 

Apple (NASDAQ:AAPL) declares $0.22/share quarterly dividend, in line with previous.

 

Becton, Dickinson (NYSE:BDX) declares $0.83/share quarterly dividend, in line with previous.

 

What I am reading today

 

            A guide to developing a deep reading habit.

            https://forge.medium.com/a-guide-to-developing-a-deep-reading-habit-f439e4eee872

 

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