The Morning Call and Buyer Alert

 

The Morning Call

 

1/26/22

 

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/deja-vu-all-over-again-stocks-dumpnpump-ahead-fed

 

            From correction to carnage.

            https://www.zerohedge.com/markets/correction-carnage-fed-walking-tightrope

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications declined 7.1% while purchase applications were down 1.8%.

 

Month to date retail chain store sales grew at approximately the same rate as in the prior week.

 

January consumer confidence came in at 113.8 versus predictions of 111.8.

https://www.advisorperspectives.com/dshort/updates/2022/01/25/consumer-confidence-fell-in-january

 

The January Richmond Fed manufacturing index was reported at 8 versus estimates of 17.

                          https://www.advisorperspectives.com/dshort/updates/2022/01/25/richmond-fed-manufacturing-activity-softened-in-january

 

                        International

 

The final reading on November Japanese leading economic indicators was 103.2 versus consensus of 103.0.

 

                        Other

 

                          Latest nowcasts for Q4 and Q1.

                          https://www.capitalspectator.com/us-gdp-growth-set-to-pop-in-q4-report-but-q1-outlook-is-sliding/

 

            The Fed

 

              The Fed seems determined to make a policy error.

              https://ryanavent.substack.com/p/the-fed-looks-increasingly-determined

 

              BofA agrees.

              https://www.zerohedge.com/markets/sum-all-fed-fears-bofa-warns-fomc-isnt-doing-enough-stop-inflation-torpedoing-markets

 

            Fiscal Policy

 

              Runaway government spending.

              https://townhall.com/columnists/stephenmoore/2022/01/25/the-most-dangerous-virus-today-is-runaway-government-spending-n2602290

 

            Geopolitics

 

              A two front war?

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

 

      Bottom line.

 

            Fear makes a comeback.

            https://alhambrapartners.com/2022/01/23/weekly-market-pulse-fear-makes-a-comeback/

 

            Some strategists believe that there is still more downside.

            https://www.bloomberg.com/news/articles/2022-01-25/-head-fake-and-fed-put-potential-what-strategists-are-saying?srnd=premium&sref=loFkkPMQ

 

            Have a plan---have a stop loss price before you buy.

            https://allstarcharts.com/you-are-not-alone/

 

            Cognitive problems investors face during a high stress Market selloff.

            https://ritholtz.com/2022/01/market-rorschach-test/

 

     Buyer Alert

 

            Our portfolios continue to take advantage of this slide in equity prices. Yesterday, the High Yield Portfolio bought a one half position in American Tower Corp (AMT-$247).

 

    News on Stocks in Our Portfolios

 

AT&T press release (NYSE:T): Q4 Non-GAAP EPS of $0.78 beats by $0.03.

Revenue of $41B (-10.3% Y/Y) beats by $550M.

 

Canadian National Railway press release (NYSE:CNI): Q4 Non-GAAP EPS of C$1.71 beats by C$0.18.

Revenue of C$3.75B (+2.5% Y/Y) beats by C$90M.

 

Canadian National Railway (NYSE:CNI) declares CAD 0.7325/share quarterly dividend, 19.1% increase from prior dividend of CAD 0.6150.

Becton, Dickinson (NYSE:BDX) declares $0.87/share quarterly dividend, in line with previous.

 

 

What I am reading today

 

            Black holes.

            https://www.syfy.com/syfy-wire/bad-astronomy-black-holes-quintillions

 

 

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