Tuesday, August 11, 2026

The Morning Call---US debt servicing costs up 500% in five years

 

The Morning Call

 

8/11/26

 

The Market

         

    Technical

 

            Monday in the charts.

https://www.zerohedge.com/markets/big-tech-bonds-bitcoin-dump-black-gold-jumps-us-iran-brinksmanship-builds?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTIxMDI2Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NjM5NDkwOSwiZXhwIjoxNzg4OTg2OTA5LCJhdWQiOiJ6aC1naWZ0In0.Jy5CxQA166zhwphbsbBDhkXCYTCjCGCoXiluW0mnh_o

 

            Monday in the technical stats.

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

            https://www.barchart.com/stocks/market-performance

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

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

 

            Tech got washed out.

https://www.zerohedge.com/the-market-ear/tech-got-washed-out-now-comes-pain-trade?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTIxMDM5Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NjM5MTYzMSwiZXhwIjoxNzg4OTgzNjMxLCJhdWQiOiJ6aC1naWZ0In0.uxj2uxnlCAA_cfEfA7oeV6No5MTTyqlW-RtDGk2viYY

 

            But…

https://www.zerohedge.com/markets/weve-seen-after-divergent-breakout-btig-asks-how-much-juice-left-squeeze?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTIxMDI0Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NjM5MTkyNywiZXhwIjoxNzg4OTgzOTI3LCJhdWQiOiJ6aC1naWZ0In0.gICexF0-PtmAj5wFuCUjtHRbwykS1LdzkIJnvxI7MGk

 

Tuesday morning setup: US equity futures were trading near session lows with bond yields at August highs of 4.74% and Brent rising above $90 for the first time in two weeks when - with just hours until the market open - we had the now standard double-whammy of well-timed "imminent deal optimism" thanks first to the Qatar foreign ministry, followed less than an hour later by comments from the Pakistan defense minister - a man repeatedly used by the Trump admin to spread market-moving propaganda - which sparked instant algo buying on hopes of, what else, an agreement to reopen the Strait of Hormuz. According to the Pakistani, the US and Iran "are close to some agreement" and "the situation is moving towards peace" which was sufficient to not only push futures immediately to session highs, and just shy of all-time highs... ... but also dump oil more than $3 and send bond yields to session lows on what is the same song and dance the market has heard countless times before, even as strategic and commercial oil stocks and reserves are being rapidly depleted below operational minimum levels. As of 8:00am, S&P futures climbed 0.2% and contracts on the Nasdaq advanced 0.4%. Ten-year Treasury yields were little changed at 4.71%, erasing an earlier move as high as 4.76%, as Brent crude erased gains to trade 0.4% lower at around $87 per barrel, rising above $90 earlier. Earlier in the morning, Intel announced a $20BN capital raise in an upsized share sale (originally $15BN) that drew more than $100 billion in demand. That deal followed hot on the heels of Nvidia’s plan to tap a group of Wall Street firms for $500 billion in funding commitments, which CEO Huang said will underwrite AI infrastructure costs for customers. Today's US economic data calendar includes ADP weekly employment change (8:15am) and July existing home sales (10am). Fed speaker slate includes Chicago Fed’s Goolsbee, unscripted on WIRED Tech Support on YouTube; Cleveland Fed’s Hammack and Richmond Fed’s Barkin have appearances slated Thursday.

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

The July small business optimism index came in at 99.8 versus forecasts of 97.5.

 

                        International

 

                        Other

 

                          Update on big four recession indicators.

                          https://www.advisorperspectives.com/dshort/updates/2026/08/07/the-big-four-recession-indicators

 

                          US Strategic Petroleum Reserve falls below operational limit.

                         https://www.zerohedge.com/energy/us-spr-falls-below-300-million-operational-limit-oil-drain-unexpectedly-surges-61mm-barrels

 

            Iran

              Overnight news.

              https://www.zerohedge.com/geopolitical/tehran-doubles-down-hormuz-demands-hardline-irgc-commander-promoted-national-security

 

              A long (more optimistic) view of Iran.

              https://amgreatness.com/2026/08/06/the-long-view-of-iran/

 

            Fiscal Policy

 

              US debt servicing cost up 500% in last five years.

  https://www.zerohedge.com/markets/us-debt-servicing-payments-climb-200-five-years?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTIxMDQ0Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NjQ1MzI3NSwiZXhwIjoxNzg5MDQ1Mjc1LCJhdWQiOiJ6aC1naWZ0In0.vbOPqD3o35Zm7lM0AK8doMDTAEnW8RQOxrCbjzkMkVM

 

 

            AI

 

              Nvidia confirms $500 billion off balance sheet financing.

              https://www.zerohedge.com/markets/nvidia-set-reveal-record-500-billion-balance-sheet-spv-deal-fund-worlds-biggest-circle-jerk

 

              The AI bubble is cracking.

  https://www.zerohedge.com/markets/ai-bubble-cracking-places-nobodys-watching?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTIxMDQ3Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NjQ1MjMxNSwiZXhwIjoxNzg5MDQ0MzE1LCJhdWQiOiJ6aC1naWZ0In0.G_Jw8rdhEaxoLxCNZJKpdSMcR_As0anLuzRtwQF53iw

 

 

Financial System

 

              Private credit is under a growing strain.

  https://www.wsj.com/finance/investing/private-credit-is-under-growing-strain-despite-industrys-upbeat-tone-e5abf388?st=djhPKP&reflink=desktopwebshare_permalink

 

           

     Investing

 

            The number of stocks outperforming the S&P is the highest in four years.

            https://www.marketwatch.com/story/the-number-of-stocks-beating-the-s-p-500-is-the-highest-in-4-years-why-that-number-should-rise-b9bd05b3?st=nBCTgn

 

            More on valuations.

            https://www.advisorperspectives.com/dshort/updates/2026/08/08/market-valuation-is-the-market-still-overvalued

 

            A breakdown of Q2’s S&P earnings.

            https://talkmarkets.com/article/q2-earnings-robust-results-and-positive-estimate-revisions-validate-market-fundamentals-1786158360

 

            The latest from Morgan Stanley.

https://www.zerohedge.com/markets/feds-got-amnesia-markets-got-deja-vu-morgan-stanleys-hedge-fund-honcho-says-everything-old?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTIxMDA5Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NjM5MzU2NSwiZXhwIjoxNzg4OTg1NTY1LCJhdWQiOiJ6aC1naWZ0In0.9GJ5PSCDDGISO0ina-F26TaI_IAeiKMrket42Q2hnDE

 

 

            Behind the bond market’s angst.

https://www.bloomberg.com/news/articles/2026-08-09/behind-bessent-moves-wall-street-sees-sign-of-bond-market-angst?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4NjM4NTc2MiwiZXhwIjoxNzg2OTkwNTYyLCJhcnRpY2xlSWQiOiJUSkNVMTJUOTZPU0cwMCIsImJjb25uZWN0SWQiOiJCMzFCNTRDQTI3MTE0NjAxOUQxMURCN0IxRUM4NTE2MyJ9.r11UVLn6p_iy6nFuoOr9e8TT6EOdZvi1Ol9zOZCNl9I

 

            Will the bond market verify the stock market’s revival?

            https://www.capitalspectator.com/will-the-bond-market-verify-the-stock-markets-revived-optimism/

 

            Can gold build on its impressive gains?

            https://talkmarkets.com/article/can-gold-build-on-its-impressive-gains-1786380297

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

 

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