The Morning Call---The debt ceiling and the 14th amendment

 

The Morning Call

 

5/5/23

 

The Market

         

    Technical

                    

            Thursday in the charts.

             https://www.zerohedge.com/markets/regional-bank-rout-stagflation-signals-spark-bond-bullion-bid

 

            More potential downside for stocks.

            https://www.zerohedge.com/markets/goldman-trader-whats-coming-markets-when-indiana-jones-was-running-boulder

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

April nonfarm payrolls rose by 253,000 versus expectations of up 180,000; the April unemployment rate was 3.4% versus 3.6%.

 

                        International

 

March German factory orders fell 10.7% versus forecasts of -2.2%; the April construction PMI was 42.0 versus 43.4.

 

March EU retail sales declined 1.2% versus projections of -0.1%; the April construction PMI was 45.2 versus 44.0.

 

The April Chinese Caixin services PMI was 56.4 versus estimates of 58.0; the April composite PMI was 53.6 versus 55.0.

 

The April UK construction PMI was 51.1 versus consensus of 51.0.

 

                        Other

           

                          Heavy truck sales up YoY.

                          https://www.calculatedriskblog.com/2023/05/heavy-truck-sales-up-sharply-year-over.html

 

The Fed

 

  What the markets seem to be discounting.

   https://www.capitalspectator.com/markets-consider-a-path-for-fed-pause-and-cut-on-rates/

 

            Fiscal Policy

 

              A potential curb to bureaucratic overreach.

              https://nypost.com/2023/05/02/the-supreme-court-might-finally-end-the-rule-of-bureaucrats-with-tragic-chevron-case/

        

           Inflation

 

            The affordability of new homes in March.

             https://politicalcalculations.blogspot.com/2023/05/the-affordability-of-new-homes-in-march.html#.ZFP14XbMLSw

 

           The Debt Ceiling

 

             The debt ceiling and the 14^th amendment.

             https://www.nakedcapitalism.com/2023/05/what-is-section-4-of-the-14th-amendment-the-validity-of-the-public-debt-of-the-united-states.html

 

     Bottom line.

 

            Are Treasuries headed higher?

            https://www.bloomberg.com/news/articles/2023-05-04/treasury-yields-may-fall-to-2-as-gundlach-banks-eye-recession?srnd=premium&sref=loFkkPMQ

 

    News on Stocks in Our Portfolios

             

Apple press release (NASDAQ:AAPL): Q2 GAAP EPS of $1.52 beats by $0.09.

Revenue of $94.84B (-2.5% Y/Y) beats by $2B.

 

Apple (NASDAQ:AAPL) declares $0.24/share quarterly dividend, 4.3% increase from prior dividend of $0.23.

 

EOG Resources press release (NYSE:EOG): Q1 Non-GAAP EPS of $2.69.

Revenue of $6.04B (+51.8% Y/Y).

 

EOG Resources (NYSE:EOG) declares $0.825/share quarterly dividend, in line with previous.

 

Nike (NYSE:NKE) declares $0.34/share quarterly dividend, in line with previous.

 

C.H. Robinson Worldwide (NASDAQ:CHRW) declares $0.61/share quarterly dividend, in line with previous.

 

What I am reading today

 

            Th King’s (Charles) billions.

https://www.bloomberg.com/news/features/2023-05-04/king-charles-coronation-route-maps-uk-sovereign-s-17-billion-empire?srnd=premium&leadSource=uverify%20wall&sref=loFkkPMQ

 

 

 

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