The Morning Call---You can't raise rates and not expect a reaction

 

The Morning Call

 

10/29/21

 

The Market

         

    Technical

 

Thursday in the charts.  Note: yesterday, the S&P reset is short term trend from a trading range to an uptrend---again.

            https://www.zerohedge.com/markets/dollar-dives-amid-crypto-chaos-biden-unveils-big-spending-bill

 

            What has been driving the recent rise in stock prices.

            https://www.linkedin.com/in/edward-yardeni/detail/recent-activity/

 

            NASDAQ melt up.

            https://www.zerohedge.com/the-market-ear/cvnn18fplg

 

Pandemonium in the bond markets.  As the article suggests, the bond guys appear to be embracing the economic slowdown/recession scenario.  Typically, this is not good for equities.  See above---confused?

            https://www.zerohedge.com/markets/96-billion-reasons-why-treasury-var-shock-about-get-worse

 

                More.

            https://www.zerohedge.com/the-market-ear/surging

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

September pending home sales fell 2.3% versus expectations of being unchanged.

https://www.calculatedriskblog.com/2021/10/nar-pending-home-sales-decreased-23-in.html

 

September personal income declined 1.0% versus forecasts of -0.2%; September personal spending was up 0.6% versus up 0.5%; the September PCE price index was +0.2%, in line.

https://www.zerohedge.com/economics/feds-favorite-inflation-indicator-30-year-high-savings-rate-plunges

 

The October Kansas City Fed manufacturing index came in at 25 versus 10 recorded in September.

 

                        International

 

September Japanese unemployment rate was 2.8%, in line; September preliminary industrial production fell 5.4% versus -3.2%; September YoY housing starts up 4.3% versus +7.5%; September YoY construction orders up 27.3% versus -2.0% in August.

 

Q3 EU flash GDP growth was +2.2% versus estimates of +2.0%; October flash CPI was +0.8% versus +0.5% in September.

 

                        Other

 

                          Updating some important economic indicators.

                          https://scottgrannis.blogspot.com/2021/10/miscellaneous-chart-updates.html

 

                          Will services offset weakness in manufacturing?

                          https://www.advisorperspectives.com/commentaries/2021/10/27/will-services-offset-weakness-in-manufacturing

 

                          Another winner from the bureaucrats.

                          https://www.zerohedge.com/markets/shippers-fear-catastrophic-fallout-crazy-california-port-fees

 

The Fed

 

  You can’t raise rates and not expect a reaction.

  https://www.zerohedge.com/markets/rabo-you-cant-raise-rates-and-prop-our-current-idiotic-system

 

Biden’s Plan

 

  Another gem from our ruling class.

  https://www.zerohedge.com/political/biden-wants-give-separated-illegals-450000-person

 

    News on Stocks in Our Portfolios

 

AbbVie (NYSE:ABBV): Q3 Non-GAAP EPS of $3.33 beats by $0.11; GAAP EPS of $1.78 misses by $0.22.

Revenue of $14.34B (+11.2% Y/Y) beats by $40M.

 

AbbVie (NYSE:ABBV) declares $1.41/share quarterly dividend, 8.5% increase from prior dividend of $1.30.

 

Exxon Mobil (NYSE:XOM): Q3 Non-GAAP EPS of $1.58 beats by $0.06; GAAP EPS of $1.57 beats by $0.07.

Revenue of $73.79B (+59.7% Y/Y) beats by $1.74B.

 

W.W. Grainger (NYSE:GWW): Q3 GAAP EPS of $5.65 beats by $0.33.

Revenue of $3.37B (+11.6% Y/Y) beats by $50M.

 

What I am reading today

 

            The value of disagreeing respectfully.

            https://thereformedbroker.com/2021/10/28/the-disrespect/

 

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