Wednesday, March 8, 2023

The Morning Call---Powell slaps dream weavers in the face

 

The Morning Call

 

3/8/23

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/hawkish-powell-pummels-stocks-oil-gold-yield-curve-collapses-terminal-rate-soars

 

Note: the S&P has now made a lower high and is back below the lower boundary of its former very short term uptrend.  Clearly not a plus; but it remains above both its DMA’s.  So, patience remains the word.

 

            The inverse correlation between the dollar and stocks.

            https://allstarcharts.com/still-the-only-catalyst/

 

            Markets are flirting with a ‘risk on’ position, but they are not there yet.

            https://www.capitalspectator.com/markets-continue-to-flirt-with-risk-on-signals/

 

            Stress in bond volatility.

            https://www.zerohedge.com/the-market-ear/stressed-moves

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications were up 7.4% while purchase applications grew 6.6%.

 

January consumer credit rose $14.8 billion versus forecasts of $20.0 billion.

                          https://www.zerohedge.com/economics/consumers-hit-brick-wall-january-credit-growth-craters-interest-rates-soar

 

The January trade balance was -$68.3 billion versus consensus of -$68.9 billion.

 

The February ADP private payrolls report showed job increases of 242,000 versus projections of 200,000.

                                  https://www.zerohedge.com/personal-finance/adp-reports-wage-growth-slowing-despite-job-gains

 

                        International

 

Q4 EU employment change was +0.3% versus estimates of +0.4%; Q4 GDP growth was +0.0%, in line.

 

The January Japanese leading economic indicators came in at 96.5 versus expectations of 96.9.

 

January German industrial production was up 3.5% versus predictions of +1.4%; January retail sales fell 0.3% versus +2.0%.

 

                        Other

 

                          January house prices down 0.2%.

                          https://www.calculatedriskblog.com/2023/03/corelogic-house-prices-up-55-yoy-in.html

 

                          February wholesale used car prices increased.

                          https://www.calculatedriskblog.com/2023/03/wholesale-used-car-prices-increased-in.html

 

The Fed

 

Powell testified before the senate banking committee.  His comments did not   indicate a more hawkish stance---but they did slap the stock dream weavers in the face.

  https://www.zerohedge.com/markets/powells-hawkish-remarks-spark-cross-market-chaos

 

  Clueless.

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

 

            Fiscal Policy

 

              Our State Department at work.

              https://www.powerlineblog.com/archives/2023/03/our-state-department-at-work.php

 

            Recession

 

              Dr. Doom fears hard landing.

              https://www.bloomberg.com/news/articles/2023-03-07/roubini-fears-hard-landing-amid-persistent-global-inflation?sref=loFkkPMQ

 

              Recession in Europe still the base case.

                  https://www.zerohedge.com/markets/recession-europe-still-base-case-despite-soft-data-hype

 

            Geopolitics

 

              The US is not ready for a great power conflict.

              https://www.nakedcapitalism.com/2023/03/wall-street-journal-us-is-not-yet-ready-for-great-power-conflict-yet-still-plots-against-china.html

 

            China

 

              China’s new foreign minister warns of conflict with US.

              https://www.cnn.com/2023/03/07/china/china-two-sessions-new-foreign-minister-us-rebuke-intl-hnk/index.html

 

     Bottom line

 

            What moves markets.

            https://alhambrapartners.com/2023/03/05/weekly-market-pulse-what-moves-markets/

 

 

    News on Stocks in Our Portfolios

 

 

What I am reading today

 

            Quote of the day.

            https://cafehayek.com/2023/03/quotation-of-the-day-4200.html

 

                        Have we allowed this to go too far?

            https://www.spectator.co.uk/article/is-your-child-a-cake/

 

                        The giant arcs that dwarf everything in the cosmos.

            https://www.bbc.com/future/article/20230302-the-giant-arcs-that-may-dwarf-everything-in-the-cosmos

 

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