The Morning Call--Fed's Bostic admits inflation isn't transitory

 

The Morning Call

 

10/13/21

 

 

The Market

         

    Fundamental

 

       Headlines

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/stocks-stink-curve-pancakes-stagflation-fears

           

            BofA: don’t buy the dip.

            https://www.zerohedge.com/markets/dont-buy-dip-bofa-explains-why-fed-has-lowered-its-put-strike

 

            Short term Treasury yield hits new 18 month high.

            https://www.ft.com/content/bb762d01-bea2-4b36-b086-e8c19187a9a3

 

              The Economy

 

                        US

 

Weekly mortgage applications rose 0.2% while purchase applications were up 1.5%.

 

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

 

The August Job openings (JOLTS) report showed available jobs of 10.4 million versus projections of 10.9 million.

                          https://www.advisorperspectives.com/dshort/updates/2021/10/12/job-openings-labor-turnover-august-2021-update

 

September consumer inflation expectations were for 5.3% versus 5.2% in August.

                          https://www.zerohedge.com/markets/fed-losing-control-consumers-inflation-expectations-hit-new-all-time-high

 

September CPI rose 0.4% versus predictions of +0.3% (YoY 5.4% versus 5.3%); core CPI was up 0,2%, in line.                                        

                          https://www.zerohedge.com/economics/headline-consumer-price-inflation-jumps-back-highest-13-years-housing-costs-soar-airfares

 

                        International

 

                          August EU industrial production fell 1.6%, in line.

 

August UK industrial production rose 0.8% versus forecast of +0.2%; August GDP grew 0.4% versus +0.5%; the August trade balance was -L3.7 billion versus -L2.9 billion in July.

 

September German CPI was 0.0%, in line.

 

The September Chinese trade balance was $66.7 billion versus estimates of $46.8 billion.

 

                        Other

 

                          The distorted market of ‘woke’ capitalism.

                          https://lawliberty.org/book-review/the-distorted-market-for-woke-capitalism/?utm_source=LAL+Updates&utm_campaign=d92341da64-LAL+Updates&utm_medium=email&utm_term=0_53ee3e1605-d92341da64-72558837

                       

  Optimism from the banks.

                          https://www.nytimes.com/2021/10/11/business/bank-earnings-preview.html

 

                          Share of mortgage loans in forbearance declines to 2.62%.

                          https://www.calculatedriskblog.com/2021/10/mba-survey-share-of-mortgage-loans-in_11.html

 

            Inflation

 

Here is the best argument (strong dollar)  for low inflation; but notice how the author hedges.

https://alhambrapartners.com/2021/10/10/weekly-market-pulse-inflation-scare/

 

              Another optimist on inflation.

              https://www.advisorperspectives.com/commentaries/2021/10/12/inflation-persistently-transitory

 

              Fed’s Bostic admits inflation isn’t transitory.

              https://www.zerohedge.com/markets/feds-bostic-finally-admits-it-inflation-not-transitory-and-its-getting-worse

 

              IMF warns of higher inflation.

              https://www.zerohedge.com/markets/imf-issues-global-stagflation-alert-cuts-global-gdp-it-warns-rising-inflation-and-dangerous

 

    News on Stocks in Our Portfolios

 

BlackRock (NYSE:BLK): Q3 Non-GAAP EPS of $10.95 beats by $1.47; GAAP EPS of $10.89 beats by $1.49.

Revenue of $5.05B (+15.6% Y/Y) beats by $230M.

What I am reading today

 

           

 

 

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