The Morning Call--Options expiration

 

The Morning Call

 

2/16/24

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/stocks-squeeze-pre-cpi-highs-dismal-data-bonds-bitcoin-bullion-black-gold-all-bounce

 

            A breather is warranted.

            https://www.zerohedge.com/markets/breather-warranted-likely-goldman-warns-stocks-might-be-nearing-point-irrational-exuberance

 

            Goldman on February options expiration.

            https://www.zerohedge.com/markets/24-trillion-options-expire-friday-sending-dealer-gamma-crashing-90-what-means-stocks

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

January industrial production fell 0.1% versus estimates of up 0.3%; capacity utilization was 78.5% versus 78.8%.

 

January PPI was up 0.3% versus forecasts of +0.1%; ex food and energy, it was up 0.6% versus +0.1%; core PPI was up 0.5% versus +0.1%.

https://www.zerohedge.com/personal-finance/producer-prices-surged-january-services-costs-soared

 

January building permits fell 1.5% versus predictions of +0.7%.

 

The February housing index was 48.0 versus projections of 46.0.

                          https://www.advisorperspectives.com/dshort/updates/2024/02/15/nahb-housing-market-index-builder-confidence-rises-for-third-straight-month

 

                        International

 

                          January UK retail sales rose 3.4% versus consensus of +1.5%.

 

                          January German PPI was +0.1% versus expectations of +0.3%.

 

            Recession

 

              The impact of declining real estate values on small banks.

  https://www.bloomberg.com/news/articles/2024-02-15/which-banks-may-face-scrutiny-of-commercial-real-estate-exposure?srnd=premium&sref=loFkkPMQ

 

            The Bond Market

 

              The yield curve bear steepening spells trouble for the Markets.

              https://www.zerohedge.com/markets/yield-curve-bear-steepening-spells-trouble-markets

 

     Bottom line

 

For the bulls. This argument is like telling a 400 lb. man that his not nearly as fat as a 500 lb. man.

            https://finance.yahoo.com/news/p-500-climb-another-25-042831789.html

 

            Which economic surprises matter?

            https://klementoninvesting.substack.com/p/which-economic-surprises-matter

           

    News on Stocks in Our Portfolios

 

AbbVie (NYSE:ABBV) declares $1.55/share quarterly dividend, in line with previous.

 

What I am reading today

 

           

 

 

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