Wednesday, February 5, 2025

The Morning Call---Hedge funds are getting shorter stocks

 

The Morning Call

 

2/5/25

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/market-recaps/bonds-bullion-big-tech-bid-after-beijing-nothing-burger-bad-jobs

 

            Market in review.

            Tariffs Roil Markets - RIA

 

            Panic buying in gold.

            https://www.zerohedge.com/the-market-ear/gold-panic-buying

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications were up 2.2% while purchase applications were down 4.0%.

 

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

 

December jobs openings (JOLTS report) totaled 7.6 million versus estimates of 8.0 million.

https://bonddad.blogspot.com/2025/02/jolts-report-for-december-shows-mild.html

            

December factory orders fell 0.9% versus expectations of -0.7%; ex transportation, they were up 0.3% versus +0.6%.

                          https://www.zerohedge.com/markets/us-factory-orders-declined-overall-2025

 

The December trade balance was -$98.4 billion versus forecasts of -$96.6 billion.

https://www.zerohedge.com/economics/us-trade-deficit-soars-firms-front-ran-trump-tariffs-december

              

 

The January ADP private payrolls report showed job increases off 183,000 versus consensus of 150,000.

                          https://www.zerohedge.com/personal-finance/american-goods-producers-suffer-biggest-job-loss-2-years-services-employment-soars

 

                        International

 

                          December EU PPI came in at +0.4%, in line.

 

The January Japanese services PMI was 53.0 versus predictions of 52.7; the composite PMI was 51.1, in line; the January Chinese Caixin services PMI was 51.0 versus 52.3; the composite PMI was 51.1 versus 50.1; the January German services PMI was 52.5, in line; the composite PMI was 50.5 versus 50.1; the January EU services PMI was 51.3 versus 51.4; the composite PMI was 50.2, in line; the January UK services PMI was 50.5 versus 51.2; the composite PMI was 50.6 versus 50.9.

 

                        Other

 

                          December median household income.

                          https://politicalcalculations.blogspot.com/2025/02/median-household-income-in-december-2024.html

 

                          January YoY heavy truck sales up.

                          https://www.calculatedriskblog.com/2025/02/heavy-truck-sales-increased-5-yoy-in.html

 

            Overnight News

 

Trump’s plans for the US to take over Gaza have been met with anger and dismay across the Arab world, raising fears of reignited conflict in the region. Saudi Arabia and Turkey on Wednesday dismissed a proposal by President Trump for the US to take control of Gaza and for Palestinians to permanently leave the strip, an idea likely to be also rejected by other Middle Eastern nations.

  https://www.zerohedge.com/geopolitical/palestinians-would-love-leave-gaza-trump-proclaims-while-hosting-netanyahu

 

US President Trump mulls revoking loans from the $400bln clean energy office.

 

US government officials have privately warned that Elon Musk’s blitz appears illegal. It was separately reported that the US Treasury gave Elon Musk's DOGE 'read-only' access to the payment system.

 

            Monetary Policy

 

              Apparently the Fed and Trump have a deal.

  https://wolfstreet.com/2025/02/03/trump-agrees-with-feds-pivot-to-wait-and-see-after-the-fed-bows-to-trump-on-everything-else-to-keep-monetary-policy-independent/

 

 

                        Fiscal Policy

 

              20,000 take government buyout offer (so far).

              https://www.zerohedge.com/political/20000-government-workers-take-trump-buyout-offer-mass-layoffs-loom

 

            Tariffs

 

              Tariffs: the good, the bad and the ugly.

              https://disciplinefunds.com/2025/02/03/lets-talk-about-tariffs/

 

              Here is some more bad and ugly.

              https://talkmarkets.com/content/economics--politics/this-trade-war-might-be-the-straw-that-breaks-the-us-dollars-back?post=480714

 

     Investing

 

            Hedge funds are getting shorter stocks.

            https://www.zerohedge.com/markets/hedge-funds-are-getting-shorter-us-stocks

 

            Update on valuation.

            https://www.advisorperspectives.com/dshort/updates/2025/02/04/market-valuation-is-the-market-still-overvalued

 

            A word of caution.

            https://alhambrapartners.com/weekly-market-pulse-i-dont-know-2/?src=news

 

            Growth stocks beyond the technology sector.

            https://www.advisorperspectives.com/commentaries/2025/02/04/finding-growth-us-equities-outside-tech-sector

 

            Q4 S&P earnings dashboard.

            https://talkmarkets.com/content/us-markets/sp-500-earnings-dashboard-24q4-tuesday-feb-4?post=480709

 

            Bond vigilantes remain in hibernation.

            https://www.zerohedge.com/markets/tariff-tensions-rise-bond-vigilantes-remain-hibernation-now

 

            Stay long gold, just not as a hedge.

            https://www.advisorperspectives.com/commentaries/2025/02/04/stay-long-gold-just-not-hedge

 

    News on Stocks in Our Portfolios

 

T. Rowe Price press release (NASDAQ:TROW): Q4 Non-GAAP EPS of $2.12 misses by $0.08.

Revenue of $1.82B (+11.0% Y/Y) misses by $50M.

 

What I am reading today

 

           

 

 

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