The Morning Call--Stocks hit escape velocity

The Morning Call

 

8/4/23

 

I am moving.  So, today’s Morning Call is a bit brief.  Back on Monday.

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/bond-bloodbath-builds-yield-curve-steepens-black-gold-bounces-ahead-payrolls

                                  

            Stocks hit escape velocity.

            https://investorplace.com/hypergrowthinvesting/2023/08/stocks-hit-escape-velocity-blasting-into-a-new-bull-market/

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          June factory orders were up 2.3% versus expectations of up 2.2%.

 

The July services PMI came in at 52.3 versus projections of 53.0; the July composite PMI was 52.0, in line.

 

The July ISM nonmanufacturing index was 52.7 versus estimates of 53.0.

                         

July nonfarm payrolls were up 187,000 versus an anticipated 200,000; the July unemployment rate was 3.5% versus 3.6%.

 

                        International

 

June German factory orders rose 9.0% versus consensus of -2.0%; the July construction PMI was 41.0 versus 42.6.

 

June EU retail sales fell 0.3% versus predictions of +0.2%; the July construction PMI was 43.5 versus 44.5.

 

The July UK construction PMI was 51.7 versus forecasts of 48.0.

 

                        Other

 

Recession

 

  Luxury turmoil.

  https://www.zerohedge.com/markets/luxury-turmoil-diamond-prices-crash-pre-covid-levels-used-rolex-prices-hit-new-six-month

 

     Bottom line

 

I have long bemoaned the fact that monetary/fiscal policy has led to the misallocation of assets.  One example being corporate managements have chosen to use cheap money to buy back stock to enhance their own compensation packages rather than investing in their companies.  That seems to be changing and to my way of thinking it is a plus for the economy and the Market.

            https://www.advisorperspectives.com/articles/2023/08/03/share-buybacks-get-boot-corporate-america-reinvests-itself

               

 

    News on Stocks in Our Portfolios

                          

Apple press release (NASDAQ:AAPL): Q3 GAAP EPS of $1.26 beats by $0.07.

Revenue of $81.8B (-1.4% Y/Y) in-line.

 

Apple (NASDAQ:AAPL) declares $0.24/share quarterly dividend, in line with previous.

 

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

                

EOG Resources press release (NYSE:EOG): Q2 Non-GAAP EPS of $2.49 beats by $0.16.

Revenue of $5.57B (-24.8% Y/Y) beats by $260M.

 

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

 

Automatic Data Processing (NASDAQ:ADP) declares $1.25/share quarterly dividend, in line with previous.

 

 

What I am reading today

 

           

 

 

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