Wednesday, February 2, 2022

The Morning Call---Different this time?

 

The Morning Call

 

2/2/22

 

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/stocks-shrug-bullard-bad-data-bbb-bust-dollar-drops

 

            Are we there yet?

            https://alhambrapartners.com/2022/01/30/weekly-market-pulse-are-we-there-yet/

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

                           

Weekly mortgage applications rose 12.0% while purchase applications were up 4.0%.

 

                            Month to date retail store sales grew at the same pace as the prior week.

 

                            December construction spending was up 0.2% versus forecasts of +0.6%.

                            https://www.calculatedriskblog.com/2022/02/construction-spending-increased-02-in.html

 

December job openings (JOLTS) report showed a total of 10.9 million versus expectations of 10.3 million.

https://www.advisorperspectives.com/dshort/updates/2022/02/01/december-job-openings-labor-turnover-little-changed-from-november

 

The final January manufacturing PMI was 55.5 versus projections of 55.0.

https://www.advisorperspectives.com/dshort/updates/2022/02/01/january-markit-services-pmi-lowest-since-oct-2020

 

The January ISM manufacturing index was 57.6 versus estimates of 57.5.

                            https://www.advisorperspectives.com/dshort/updates/2022/02/01/january-ism-manufacturing-index-sector-remains-demand-driven

 

The January ADP private payroll report showed total jobs fell 301,000 versus predictions of a 207,000 increase.

https://www.zerohedge.com/personal-finance/adp-signals-biggest-monthly-job-loss-2020-covid-lockdowns

                                                      

 

                                                      

                        International

 

                          The January flash EU CPI was +0.3% versus consensus of -0.3%.

 

                        Other

 

                          December median household income.

                          https://politicalcalculations.blogspot.com/2022/02/median-household-income-in-december-2021.html#.Yfl4y-rMKUk

 

            The Fed

 

Fed officials make it clear that this time is different (yeah, right. If the Market takes a big dive, the guys will fold like a cheap tent).

              https://www.nytimes.com/2022/01/31/business/economy/fed-inflation-economy.html

 

              This analyst agrees that this time is different.

              https://www.zerohedge.com/markets/fed-put-powell-repealing-it

 

              Markets expect at least two ECB rate hikes this year.

              https://www.ft.com/content/304c8a23-aa5d-44a3-8903-bfd6f1e2b12a

 

            Fiscal Policy

 

              US debt hits $30 trillion.

              https://www.zerohedge.com/markets/us-debt-hits-30-trillion-first-time

 

            Inflation

 

              Rents increasing sharply YoY.

              https://www.calculatedriskblog.com/2022/02/rents-still-increasing-sharply-year.html

 

              Meatflation.

              https://www.zerohedge.com/commodities/meatflation-stick-around-us-cattle-herds-drop-amid-severe-drought

 

     Bottom line.

 

            Waiting for the ‘fat pitch’.

            https://americanconsequences.com/steve-sjuggerud-when-life-gives-me-a-fat-pitch/

 

            John Mauldin’s thoughts on 2022.

            https://www.advisorperspectives.com/commentaries/2022/01/28/so-goes-the-year

 

            Multiple compression?

            https://howardlindzon.com/multiple-compression-what-next/

 

    News on Stocks in Our Portfolios

 

AbbVie press release (NYSE:ABBV): Q4 Non-GAAP EPS of $3.31 beats by $0.03.

Revenue of $14.89B (+7.4% Y/Y) misses by $70M.

 

C.H. Robinson Worldwide press release (NASDAQ:CHRW): Q4 GAAP EPS of $1.74 misses by $0.13.

Revenue of $6.5B (+42.9% Y/Y) beats by $240M.

 

Emerson Electric press release (NYSE:EMR): Q1 Non-GAAP EPS of $1.05 beats by $0.04.

Revenue of $4.5B (+8% Y/Y) beats by $20M.


Emerson Electric (NYSE:EMR) declares $0.515/share quarterly dividend, in line with previous.

 

Becton, Dickinson and Company's (NYSE:BDX) board approved the spinoff of its diabetes care business, which will be known as Embecta, and declared a pro rata distribution of Embecta shares of to BDX shareholders.

 

The board voted unanimously to approve the spinoff to occur on Apr. 1, concluding that it is consistent with BDX's growth strategy and helps sharpen its focus on core innovation priorities.

 

FactSet Research Systems (NYSE:FDS) declares $0.82/share quarterly dividend, in line with previous.

 

What I am reading today

 

            Five common assumptions about retirement that are wrong.

            https://www.usatoday.com/story/money/personalfinance/retirement/2022/01/30/5-things-people-get-wrong-about-retirement/49726229/

 

                        Bitcoin is a poor medium of exchange but a great store of value.

            https://www.pragcap.com/bitcoin-is-a-terrible-form-of-money-but-a-very-good-store-of-value/

 

 

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