Thursday, September 4, 2025

The Morning Call---What the yield curve is telling us

 

The Morning Call

 

9/4/25

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/market-recaps/jolted-bonds-gold-crypto-soar-after-labor-market-meltdown

 

                Wednesday in the technical stats.

            https://www.barchart.com/stocks/momentum

            https://www.barchart.com/stocks/sectors/rankings

            https://www.barchart.com/stocks/signals/new-recommendations

 

            Here comes the worst month of the year.

            https://www.carsongroup.com/insights/blog/here-comes-the-worst-month-of-the-year-2/

 

            Another take on September seasonals (this was written on 8/28).

            https://www.lpl.com/research/blog/so-long-sweet-summer-a-closer-look-at-september-seasonals.html

           

            Bearish rising wedge.

            https://talkmarkets.com/content/etfs/bearish-rising-wedge?post=519813

 

            Bond volatility just screamed a warning.

            https://www.zerohedge.com/the-market-ear/move-index-just-screamed-warning-did-you-hear-it

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly jobless claims totaled 237,000 versus projections of 232,000.

                          https://www.zerohedge.com/personal-finance/initial-jobless-claims-rise-highest-june

 

Month to date retail chain store sales grew at the same pace as the prior week.

 

Final Q2 nonfarm productivity was up 3.3% versus forecast of up 2.4%; unit labor costs were up 1.0% versus +1.6%.

 

The July trade balance was -$78.3 billion versus expectations of -$75.7 billion.

 

July job openings (JOLT report) totaled 7.18 million versus consensus of 7.3 million. This report drew a lot of attention. So, I include several analyses.

https://www.advisorperspectives.com/dshort/updates/2025/09/03/jolts-report-job-openings-july-2025

https://bonddad.blogspot.com/2025/09/the-soft-landing-scenario-in-jolts.html

https://mishtalk.com/economics/the-unemployment-level-is-now-greater-than-job-openings/

 

July factory orders fell 1.3% versus predictions of -1.1%; ex transportation, they were up 0.6% versus +0.3%.

 

The August ADP private payrolls report showed job increases of 54,000 versus estimates of 65,000.

                          https://www.zerohedge.com/personal-finance/adp-employment-report-disappoints-august

 

August light vehicle sales totaled 16.1 million versus projections of 16.0 million.

 

                        International

 

July EU PPI was up 0.4% versus forecasts of +0.5%; July EU retail sales declined 0.5% versus -0.1%.

 

The August EU construction PMI was 46.7 versus expectations of 45.0; the August German construction PMI was 46.0 versus 46.4; the August UK construction PMI was 45.5 versus 45.0.

 

August UK new car sales were down 2.0%. in line.

 

                        Other

           

                          The linkages between the US and Europe.

                          https://www.apolloacademy.com/linkages-between-the-us-and-europe/

 

                          July median household income.

                          https://politicalcalculations.blogspot.com/2025/09/median-household-income-in-july-2025.html

 

                          Nowcast ‘core GDP’ decelerates.

                          https://econbrowser.com/archives/2025/09/nowcasted-core-gdp-decelerates

 

                          Chaos reigns and the economy suffers.

  https://www.bloomberg.com/opinion/articles/2025-09-03/tariffs-and-the-economy-more-chaos-is-no-good?srnd=homepage-americas&sref=loFkkPMQ

 

            Monetary Policy

 

              Stop worrying about the Fed.

              https://www.morningstar.com/markets/7-reasons-stop-freaking-out-over-fed

 

              What the yield curve is telling us.

              https://alhambrapartners.com/weekly-market-pulse-the-sound-of-silence/?src=news

           

              Bond market uneasy over fiscal profligacy.

              https://www.zerohedge.com/markets/global-yield-curve-steepening-betrays-unease-fiscal-excess

 

The Fed released its latest Beige Book report showing little change in current trends---meaning flat to declining consumer spending.

https://www.calculatedriskblog.com/2025/09/feds-beige-book-little-or-no-change-in.html

 

            Fiscal Policy

 

              Government funding deadline in one month---here we go again.

              https://www.zerohedge.com/political/johnson-thune-and-trump-collision-course-over-approaching-shutdown

 

            Geopolitics

 

              Xi’s meeting with Putin and Kim.

  https://www.bloomberg.com/news/articles/2025-09-03/trump-dismisses-concern-about-xi-challenging-us-military-might?srnd=homepage-americas&sref=loFkkPMQ

 

 

     Investing

 

            The positive argument for the government taking a stake in Intel.

            https://investorplace.com/hypergrowthinvesting/2025/09/the-real-reason-the-u-s-took-a-stake-in-intel-stock/

 

            The philosophy of investing.

            https://www.advisorperspectives.com/commentaries/2025/09/02/philosophy-of-investing

 

            Behind Q2’s bumper earnings.

            https://www.wsj.com/business/earnings-cost-cutting-productivity-e022418a?mod=economy_lead_pos3

 

            Navigating a bubble.

            https://www.zerohedge.com/personal-finance/valuations-are-extreme-navigating-bubble

 

            The latest from Goldman’s top strategist.

            https://www.zerohedge.com/markets/where-invest-post-modern-cycle-goldman-top-strategist-sees-fertile-ground-alpha-generation

 

    News on Stocks in Our Portfolios

 

Goldman Sachs Group Inc. will invest as much as $1 billion in T. Rowe Price Group Inc. and team up with the asset manager to sell private-market products to retail investors.

 

What I am reading today

 

            NASA’s Jupiter probe leaves stunning legacy.

            https://www.scientificamerican.com/article/how-nasas-juno-probe-changed-everything-we-know-about-jupiter/

 

            Living your ideals.

            https://traderfeed.blogspot.com/2025/08/living-your-ideals.html

 

            Quote of the day.

            https://cafehayek.com/2025/09/quotation-of-the-day-5122.html

 

 

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