The Morning Call--The coming earnings reversion

 

The Morning Call

 

3/11/22

 

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/stocks-bonds-crypto-crumble-global-financial-conditions-tighten-drastically

 

            Update on bull/bear ratio indicator.

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

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                        International

 

                          January Japanese household spending fell 1.2% versus estimates of -3.0%.

 

January UK GDP grew 0.8% versus expectations of 0.2%; the January trade balance was -L16.1 billion versus expectations of -L3.7 billion.

 

                          February German CPI was +0.9%, in line.

 

                        Other

 

                          Inflation adjusted oil prices.

                          https://global-macro-monitor.com/2022/03/09/real-oil-prices-are-36-below/

 

                          Recession time?

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

 

            Fiscal Policy

 

              Congress plans on spending $1.5 trillion this fiscal year.

              https://reason.com/2022/03/09/congress-agrees-to-spend-1-5-trillion-this-year-continue-to-pretend-the-deficit-doesnt-matter/

 

            Geopolitics

 

              Putin’s reasoning.

              https://asiatimes.com/2022/03/the-predictable-vladimir-putin/

 

              The potential blowback from Russian actions.

              https://www.nakedcapitalism.com/2022/03/russia-sanctions-blowback-only-beginning-globalization-in-the-crosshairs-russian-retaliation-coming.html

 

              More.

              https://www.advisorperspectives.com/commentaries/2022/03/09/heavy-metal-diplomacy

 

     Bottom line.

 

            The coming reversion in corporate earnings.

            https://www.zerohedge.com/markets/earnings-reversion-coming

 

    News on Stocks in Our Portfolios

 

Oracle press release (NYSE:ORCL): Q3 Non-GAAP EPS of $1.13 misses by $0.05.

Revenue of $10.51B (+4.2% Y/Y) in-line.

 

Oracle (NYSE:ORCL) declares $0.32/share quarterly dividend, in line with previous.

 

What I am reading today

 

           

            Say less.

            https://thereformedbroker.com/2022/03/10/say-less/

 

            1700 year old sunken Roman boat found in six feet of water.

            https://www.theguardian.com/science/2022/mar/08/roman-boat-that-sank-in-mediterranean-1700-years-ago-gives-up-its-treasures

 

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