The Morning Call---Bull market correction?

 

The Morning Call

 

8/9/23

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/quartet-carnage-crushes-stocks-bonds-bitcoin-black-gold-bid

 

The Market is teasing important levels.

https://www.zerohedge.com/the-market-ear/market-teasing-big-levels

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications were down 3.1% while purchase applications were down 2.7%.

 

Month to date retail chain store sales grew faster than in the prior week.

 

The June trade balance was -$65.5 billion versus expectations of -$65.0 billion.

 

                        International

 

July Chinese CPI came in at +0.2% versus estimates of -0.1%; July YoY PPI was -4.4% versus -4.1%.

 

July Japanese YoY machine tool orders fell 19.8% versus consensus of -20.0%.

 

                        Other

 

            Recession

 

              This is a deep dive into consumer spending trends (must read).

              https://www.zerohedge.com/markets/stimulus-and-consumption-are-fueling-economic-resilience-now

 

              The economy is fine.  Stop worrying.

              https://www.advisorperspectives.com/articles/2023/08/07/us-economy-great-stop-worrying-about-it

 

  Teen jobs fall in July.

  https://politicalcalculations.blogspot.com/2023/08/teen-jobs-fall-again-in-july-2023.html

 

              China’s trade numbers plunge in blow to its economy.

              https://www.bloomberg.com/news/articles/2023-08-08/china-s-trade-plunges-more-than-forecast-in-blow-to-recovery?srnd=premium&sref=loFkkPMQ

 

  Moody’s cuts bank share ratings.

  https://www.bloomberg.com/news/articles/2023-08-08/moody-s-has-more-gloomy-view-on-us-banks-amid-several-strains?srnd=premium&sref=loFkkPMQ

 

  Leading index for commercial real estate declined in July.

  https://www.calculatedriskblog.com/2023/08/leading-index-for-commercial-real.html

 

     Bottom line

 

            Bull market correction?

            https://alhambrapartners.com/2023/08/07/weekly-market-pulse-expect-the-unexpected/

                         

            Gravity is setting in on equity valuations.

            https://www.advisorperspectives.com/commentaries/2023/08/08/gravity-setting-in-equity-valuations

 

            Stocks down, bonds up on bank/economic worries.

https://www.bloomberg.com/news/articles/2023-08-07/stock-market-today-dow-s-p-live-updates?srnd=markets-vp&utm_campaign=What%20I%20Am%20Reading&utm_medium=email&_hsmi=269462226&_hsenc=p2ANqtz--fM63nAyQHBaIEAmA1300RxT41iFEPrF0di00H5cRsyDL6HWHYuxDnj3lynhf5RJilEG4TBb3MFAJCYC96QUp6OGhgXg&utm_content=269462226&utm_source=hs_email&sref=loFkkPMQ

 

Excesses exist.

https://www.zerohedge.com/markets/excesses-exist-currently-have-historically-never-occurred

 

    News on Stocks in Our Portfolios

 

Expeditors press release (NASDAQ:EXPD): Q2 GAAP EPS of $1.30 misses by $0.06.

Revenue of $2.2B (-52.2% Y/Y) misses by $460M.

 

What I am reading today

 

A performance from Cirque du Soliel

           

                        The feel good story of the college football preseason.

            https://pjmedia.com/columns/chris-queen/2023/08/07/heres-the-feel-good-story-of-the-college-football-pre-season-n1716852

 

            America’s super-sized military.

            https://www.nakedcapitalism.com/2023/08/americas-supersized-military-the-greatest-fighting-force-in-human-history.html

 

 

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