Wednesday, June 14, 2023

The Morning Call--Corporate profits look a bit shaky

 

The Morning Call

 

6/14/23

 

The Market

         

    Technical

 

Tuesday in the charts.

https://www.zerohedge.com/markets/dollar-dives-yellen-questions-reserve-currency-bonds-bullion-battered-after-mixed-cpi

 

            Bullish sentiment rises.

            https://www.zerohedge.com/markets/bullish-sentiment-rises-fomo-kicks

 

            The NASDAQ versus the 10-year Treasury.

            https://www.zerohedge.com/the-market-ear/last-time-10-year-closed-here-nasdaq-was

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

                            

Weekly mortgage applications were up 7.2% while purchase applications were up 7.6%.

 

June PPI was -0.4% versus consensus of -0.1%; core PPI was +0.2%, in line.

                             https://www.zerohedge.com/personal-finance/ppi-plunges-more-expected-lowest-dec-2020

 

                        International

 

                            April EU industrial production rose 1.0% versus projections of +0.8%.

 

April UK GDP growth was +0.2%; in line; April industrial production was -0.3% versus -0.1%; the April trade balance was L-1.51 billion versus L-2.6 billion.

 

May German PPI was -1.1% versus estimates of +0.2%.

 

                        Other

 

            The Fed

 

               China’s rate cut may be just the beginning.

                https://asiatimes.com/2023/06/chinas-surprise-rate-cut-may-be-just-the-beginning/

 

            Inflation

 

              May CPI shows that the Fed has made progress, but it still has more to do.

              https://www.wsj.com/articles/consumer-price-index-report-may-inflation-cafcbef5?mod=economy_lead_story

 

            Recession

 

              This indicator places odds of recession over 80%.

              https://politicalcalculations.blogspot.com/2023/06/us-recession-probability-on-track-to.html

 

              Eurozone revised to recession.

              https://www.advisorperspectives.com/commentaries/2023/06/13/eurozone-recession-inflation-lebowitz-roberts

               

               The return of El Nino threatens a new level of economic destruction.

                https://www.bloomberg.com/graphics/2023-el-nino-climate-change-extreme-weather/?srnd=premium&sref=loFkkPMQ

 

    Bottom line.

 

            Corporate profits look at bit shaky.

            https://www.ft.com/content/46f4c713-812e-4b0c-961b-ffbe54b6121e

 

    News on Stocks in Our Portfolios

 

 

What I am reading today

 

           

                        Quote of the day.

            https://cafehayek.com/2023/06/quotation-of-the-day-4295.html

 

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