Thursday, November 11, 2021

The Morning Call--A fourth mandate for the Fed?

 

The Morning Call

 

11/11/21

 

 

The Market

         

    Technical

 

            Wednesday in the charts.

              https://www.zerohedge.com/markets/crypto-gold-dollar-soar-cpi-surge-sparks-fed-faux-pas-fears

 

            Seasonality trade still intact.

            https://www.zerohedge.com/the-market-ear/c6fn0frxj

 

            Bond market telling a different story.

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

 

            Bitcoin versus gold.

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

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          September wholesale inventories rose 1.4% versus predictions of up 1.1%.

                       

                        International

 

The September UK trade balance was -L2.8 billion versus consensus of -L3.4 billion; September industrial production fell 0.4% versus +0.2%; September YoY construction output was up 7.2% versus +6.9%; Q3 GDP growth was +1.3% versus +1.5%; Q3 business investment was up 0.4% versus +2.6%.

 

                          October Japanese PPI came in at +1.2% versus estimates of +0.4%.

 

October YoY Chinese vehicle sales declined 9.4% versus expectations of -18.0%.

 

                        Other

 

                          Global GDP shrinks at slower pace in October.

                          https://politicalcalculations.blogspot.com/2021/11/world-gdp-shrinks-at-slower-rate-in.html#.YYwP12DMKUk

 

            The Fed

 

              A fourth mandate for the Fed?

              https://www.nysun.com/editorials/a-fourth-mandate-for-the-fed/91730/

 

Fiscal Policy

 

  Shutting down the energy industry.

  https://www.zerohedge.com/energy/bidens-unhinged-socialist-banking-nominee-wants-oil-coal-and-gas-industries-go-bankrupt

 

            Inflation

 

              More on the rising labor costs/cost push inflation issue.

              https://www.advisorperspectives.com/commentaries/2021/11/10/labor-strike-while-the-iron-is-hot

 

              Barry Ritholtz has another reason to not question that inflation is transitory.

              https://ritholtz.com/2021/11/time-peak-inflation/

 

              BofA not so sanguine.

              https://www.zerohedge.com/economics/heat-blistering-inflation-will-make-fed-start-sweating-bofa

           

The coronavirus

 

              The fallout from the lockdown.

              https://brownstone.org/articles/the-war-weve-lived-and-the-birth-of-the-new/

 

              The sure cure for the vaccination problem.

              https://www.zerohedge.com/covid-19/if-biden-wants-increase-vaccine-demand-vienna-has-answer

 

     Bottom line

 

            More fuel for the bulls.

            https://investorplace.com/2021/11/all-eyes-on-inflation-and-the-fed/?utm_source=rcm&utm_medium=editorial

 

    News on Stocks in Our Portfolios

 

Automatic Data Processing (NASDAQ:ADP) declares $1.04/share quarterly dividend12% increase from prior dividend of $0.93.

 

What I am reading today

 

            Thoughts on the politics of education.

            https://marginalrevolution.com/marginalrevolution/2021/11/yglesias-on-crt.html

 

 

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