The Morning Call---The infrastructure bill: the deeper you get, the worse it gets

 

The Morning Call

 

8/6/21

 

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/cryptos-small-caps-surge-hard-datas-hammered-2-year-lows

 

            Retail stock buying in July set records.

            https://www.zerohedge.com/markets/retail-stock-buying-july-blew-away-all-records-50-higher-previous-all-time-high

 

            Negative yielding bonds amount to $16 trillion globally.

            https://www.ft.com/content/43280fe3-b6cd-44e1-bb75-25b0962b5ba1

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

July nonfarm payrolls rose 943,000 versus estimates of 870,000; the July unemployment rate as 5.4% versus 5.7%.

                          https://www.zerohedge.com/markets/july-payrolls-beat-expectations-rising-943000-unemployment-rate-tumbles

 

                        International

 

June Japanese household spending fell 3.2% versus expectations of +2.0%; June YoY cash earnings declined 0.1% versus +1.9% in May; June leading economic indicators came in at 104.1 versus 102.6 in May.

 

June German industrial production dropped 1.3% versus consensus of +0.5%.

 

                        Other

 

                          Demand is not the problem.

                          https://global-macro-monitor.com/2021/08/04/demand-is-way-back-yet-workers-remain-scarce/

 

            The Fed

 

              Changes coming to the Fed.

              https://www.reuters.com/business/finance/democrats-see-chance-reset-wall-st-oversight-when-top-fed-official-steps-down-2021-08-05/

 

 

            Fiscal Policy

 

              The infrastructure bill:  the deeper you get , the worse it gets.

              https://www.battleswarmblog.com/?p=48841

 

            The coronavirus

 

              Why the eagerness to swallow the Fauci narrative hook, line and sinker.

              https://www.realclearmarkets.com/articles/2021/08/05/why_the_eagerness_to_swallow_faucis_lines_hook_line_and_sinker_788703.html

 

              A thought provoking article on biotechnology patents.

              https://www.nakedcapitalism.com/2021/08/biotechnology-greed-is-prolonging-the-pandemic-its-inexcusable.html

 

              A UK study shows virus survivors show signs of cognitive deficits.

              https://www.zerohedge.com/covid-19/recovered-covid-patients-suffering-significant-cognitive-deficits-according-large-scale-uk

 

     Bottom line

 

            More on valuation.

            https://blog.validea.com/revisiting-the-markets-valuation-and-the-value-of-value/

 

            And.

            https://www.advisorperspectives.com/dshort/updates/2021/08/05/market-cap-to-gdp-july-buffett-valuation-indicator

 

            And.

            https://www.advisorperspectives.com/dshort/updates/2021/08/05/july-2020-market-valuation-inflation-and-treasury-yields

 

    News on Stocks in Our Portfolios

 

C.H. Robinson Worldwide (NASDAQ:CHRW) declares $0.51/share quarterly dividend, in line with previous.

 

Nike (NYSE:NKE) declares $0.275/share quarterly dividend, in line with previous.

 

Becton, Dickinson (NYSE:BDX): Q3 Non-GAAP EPS of $2.74 beats by $0.30; GAAP EPS of $1.72 beats by $0.32.

Revenue of $4.89B (+26.7% Y/Y) beats by $380M.

 

UPS' (NYSE:UPS) board approved a new $5B share buyback program replacing its existing $2.1B authorization. The company's board also declared $1.02/share quarterly dividend, in line with previous.

 

What I am reading today

 

           

 

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