The Morning Call---The Treasury fiddles while the nation's finances burn

The Morning Call

 

10/27/23

 

The Market

         

    Technical

 

Thursday in the charts.

https://www.zerohedge.com/markets/better-data-sparks-big-bond-bid-batters-mag-7-stocks-trillion-dollar-tumble

 

Watch equal weight SPW.

https://www.zerohedge.com/the-market-ear/watch-equal-weight-closely-here

 

Too much fear?

https://www.zerohedge.com/the-market-ear/nearing-edge-overblown-fear

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          September pending home sales rose 1.1% versus forecasts of -1.8%.

                          https://www.advisorperspectives.com/dshort/updates/2023/10/26/pending-home-sales-growth-september-2023

 

 

   September personal income was reported at +0.3% versus    expectations of +0.4%; personal spending was +0.7% versus +0.5%.

 

  The September PCE price index was +0.4% versus consensus of +0.3%; the core PCE price index was up 0.3%, in line.

  https://www.zerohedge.com/personal-finance/savings-rate-plunges-spending-soars-inflation-slows-govt-wage-growth-nears-record

 

 

  The October Kansas City Fed manufacturing index came in at -8   versus projections of -14.           

                          https://www.advisorperspectives.com/dshort/updates/2023/10/26/kansas-city-fed-manufacturing-activity-declined-october-2023

 

                         International

 

                           September Chinese YoY industrial profits fell 9.0%, in line.

 

   October Japanese YoY CPI was up 3.3% versus estimates of 2.7%; ex     food and energy, it was up 2.7% versus 2.3%; core CPI was 2.7% versus 2.5%.            

 

                        Other

 

            The Fed

 

              M2 growth continues to decline.

              https://scottgrannis.blogspot.com/2023/10/m2-update-continued-disinflation.html

 

            Fiscal Policy

 

              The Treasury fiddles while the nation’s finances burn.

              https://www.foxbusiness.com/economy/treasury-dropped-financial-bomb-bidenomics-means-worst-yet-come

 

Recession

 

  What will the economy do for an encore?

  https://www.wsj.com/economy/what-will-the-economy-do-for-an-encore-8493e9c3?mod=finance_lead_story&utm_campaign=What%20I%20Am%20Reading&utm_medium=email&_hsmi=280017312&_hsenc=p2ANqtz-_BJUS9Tbth0q0aIbqVUXgNCqpPdrSyNwmYRjhLJzWDIx7VnbfHj3YvpOdISR01biqV6nyh-89emrB6bVLh1AlXftESYA&utm_content=280017312&utm_source=hs_email

 

   Serious mortgage delinquency rate drops to new low.

  https://www.calculatedriskblog.com/2023/10/corelogic-us-serious-mortgage.html

 

War in the Middle East

 

  Israel’s coming attack on Gaza.

  https://www.nakedcapitalism.com/2023/10/israels-coming-attack-on-gaza-boundary-conditions-and-delay.html

 

  Is the market pricing his crisis accurately?

  https://www.zerohedge.com/markets/all-makes-crisis-much-larger-and-more-probable-markets-are-pricing

 

China

 

  US/China relations quietly mending.

  https://www.bloomberg.com/news/articles/2023-10-26/us-china-ties-quietly-improving-even-as-global-turmoil-surges?srnd=premium&sref=loFkkPMQ

 

     Bottom line

 

            A market rally is brewing.

            https://investorplace.com/2023/10/a-market-rally-is-brewing/

 

    News on Stocks in Our Portfolios

 

Illinois Tool Works (NYSE:ITW) declares $1.40/share quarterly dividend, in line with previous.

 

AbbVie press release (NYSE:ABBV): Q3 Non-GAAP EPS of $2.95 beats by $0.08.

Revenue of $13.93B (-5.9% Y/Y) beats by $220M.

 

AbbVie (NYSE:ABBV) declares $1.55/share quarterly dividend, 4.7% increase from prior dividend of $1.48.

 

T. Rowe Price press release (NASDAQ:TROW): Q3 Non-GAAP EPS of $2.17 beats by $0.40.

Revenue of $1.67B (+5.0% Y/Y) beats by $20M.

 

Exxon Mobil press release (NYSE:XOM): Q3 Non-GAAP EPS of $2.27 misses by $0.09.

Revenue of $90.76B (-19.0% Y/Y) misses by $1.81B.

 

Exxon Mobil (NYSE:XOM) declares $0.95/share quarterly dividend, 4.4% increase from prior dividend of $0.91.

 

What I am reading today

 

            Personal hygiene in the Middle Ages.

https://www.history-a2z.com/personal-hygiene-in-medieval-times/53?xcmg=1#tblciGiDOIA2Vl45LsdRG5mUfzsyyaTTw2aWyPucaThai8rh3BCD7rWEoj86myK-kkd1-

 

 

 

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