Tuesday, January 28, 2025

 

The Morning Call

 

1/28/25

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/market-recaps/deepseek-sparks-chaos-across-markets-bloodbath-big-tech-bitcoin-black-gold

 

            More selling to come?

            https://talkmarkets.com/content/us-markets/all-time-high-sp-500--is-it-the-selling-opp-i-forecast?post=479395

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

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

 

The November Case Shiller home price index fell 0.1%, in line.

 

December durable goods orders fell 2.2% versus expectations of +0.6%; ex transportation, they were up 0.3% versus +0.4%.

                          https://www.zerohedge.com/markets/us-durable-goods-orders-tumbled-december-boeing-bloodbath-continues

 

December new home sales were up 3.6% versus consensus of -3.5%; December building permits were down 0.7%, in line.

https://bonddad.blogspot.com/2025/01/in-december-theme-for-new-homes-was.html

 

The January Dallas Fed manufacturing index was 14.1 versus projections of 4.0.

https://www.advisorperspectives.com/dshort/updates/2025/01/27/dallas-fed-manufacturing-business-activity-reaches-highest-level-since-october-2021

 

                        International

 

                        Other

 

The impact of undocumented workers on the wages of native born residents.

https://econbrowser.com/archives/2025/01/how-much-does-undocument-immigration-push-down-wages-of-native-born-workers

 

                          More problems for the commercial real estate industry.

  https://wolfstreet.com/2025/01/25/doge-seeks-to-shed-vast-amounts-of-government-office-space-heres-how-much-the-government-leases-and-where-and-what-it-can-shed-during-trumps-term/

 

                          Hotel occupancy rates up 6.7% YoY.

                          https://www.calculatedriskblog.com/2025/01/hotels-occupancy-rate-increased-67-year.html

 

            Overnight News

 

Trump spoke after the Mon close and said “in the very near future” he would be   placing tariffs on computer chips, semiconductors, pharmaceuticals, steel, aluminum, and copper.

 

Trump said he wants universal tariffs much larger than 2.5% and has a tariff level in mind but had not set it yet, which followed an earlier report in FT that Treasury Secretary Bessent is pushing for a gradual 2.5% universal tariffs plan in which the 2.5% levy would move higher by the same amount each month.

 

Trump said he will work with Congress on a plan to secure the borders and that they need a massive increase in funding for border security, while he will work with Congress on tax cuts and must permanently extend tax cuts previously passed under the Trump administration. Trump reiterated "drill baby drill" and said he will give fast approval to anyone building a plant for electric generation. Trump also stated that tariffs will be placed on computer chips in the near future and he will place tariffs on producers of pharmaceuticals, while he added that steel and other industries will be considered for tariffs and tariffs will also be placed on aluminum and copper. Furthermore, he said if you want to stop placing the tariffs, companies need to build plants in the US and it is good that companies in China have come up with a faster method of artificial intelligence whereby Chinese startup DeepSeek should be a wake-up call.

 

            Monetary Policy

 

              Will Trump’s ‘demands’ influence Fed policy?

              https://www.capitalspectator.com/will-the-trump-factor-influence-markets-and-the-fed-this-week/

 

              Update on M2.

 


            Tariffs

 

              Understanding ‘comparative advantage.’

              https://cafehayek.com/2025/01/trump-has-no-comparative-advantage-at-understanding-trade.html

 

            DeepSeek

 

              Nvidia responses to DeepSeek announcement.

              https://www.zerohedge.com/technology/nvidia-openais-sam-altman-respond-deepseek-developments

 

              Goldman on the DeepSeek shock.

              https://www.zerohedge.com/markets/how-goldman-trading-deepseek-shock

 

              More:

              https://www.zerohedge.com/markets/goldman-top-trader-one-fell-swoop-local-narrative-around-ai-has-changed

 

              Bernstein on DeepSeek.

              https://www.zerohedge.com/markets/dont-buy-doomsday-bernsteins-3-reasons-why-todays-market-panic-extremely-overblown

 

              The bulls mount their defense.

              https://www.zerohedge.com/the-market-ear/bulls-mount-their-defense

 

    Investing

 

            Gold glitters.

            https://asiatimes.com/2025/01/gold-glitters-at-end-of-the-world-as-we-know-it/

 

            Curb your enthusiasm. Part 2.

            https://www.downtownjoshbrown.com/p/maybe-the-only-chart-you-need-to-understand-2025

 

            And get ready for higher rates.

            https://www.barrons.com/articles/high-interest-rates-deficit-bonds-borrowing-trump-policies-23a39f5b?st=fH1999

 

            Expect more market volatility.

            https://www.bloomberg.com/opinion/articles/2025-01-27/the-three-forces-shifting-the-investment-landscape?srnd=homepage-americas

           

            Beware of the narrative.

            https://www.optimisticallie.com/p/the-stories-we-tell

 

    News on Stocks in Our Portfolios

 

 

What I am reading today

 

            Trading as warfare.

            https://traderfeed.blogspot.com/2025/01/trading-as-warfare.html

 

 

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