The Morning Call---QEInfinity But Not Forever
Value, Growth At A Reasonable Price, Dividend Investing
Seeking Alpha Analyst Since 2010
The Morning Call
12/17/20
The Market
Technical
Wednesday in the charts.
Dollar Drops As Gold & Crypto Pop On Fed Flop, Washington Slop
Technicals are near the breaking point.
What a Santa Claus rally would tell you about the stock market performance in 2021.
This is what a Santa Claus rally would tell you about stock market performance in 2021
Fundamental
Headlines
The Economy
US
Weekly jobless claims were up 885,000 versus expectations of 800,000.
Initial Jobless Claims Surge To Highest In Almost 4 Months
October business inventories rose 0.7%, in line.
November housing starts were up 1.2% versus consensus of unchanged; building permits were up 6.2% versus unchanged.
Despite Homebuilder Sentiment Slip, Permits Soar To 14 Year Highs On Renter-Nation Rebuild
The December housing market index came in at 86 versus estimates of 88.
NAHB Housing Market Index: Second Highest Reading Despite Decline
The December flash manufacturing PMI was 56.5 versus predictions of 55.7; the services PMI was 55.3 versus 55.9; the composite PMI was 55.7 versus 57.0.
US PMIs Slow In Early December Data As Services Slump, Prices Soar
The December Philadelphia Fed manufacturing index was reported at 11.1 versus forecasts of 20.0.
International
November EU CPI came in at -0.3%, in line.
Other
The Treasury yield curve continues to steepen.
US Treasury Yield Curve Steepens To 3-Year High
Architecture billings were down in November.
AIA: "Architecture billings lose ground in November"
The Fed
The FOMC wrapped up its December meeting yesterday. In its official statement, it (1) sounded slightly more upbeat about the economy, (2) left rates unchanged, (3) left the current magnitude of QE bond purchases unchanged, (4) along with its liquidity swap and repurchase agreements with other central banks. However, it did make one alteration in its language---adding the caveat that QE would continue until there is substantial improvement in the economy. In other words, it is now QEInfinity but not Forever.
Fed Leaves All Policies Unchanged, Will Keep QE Until "Substantial Further Progress" Made
The Bank of England left rates and bond buying program unchanged.
Bank of England Leaves Rates, Asset Purchases On Hold Ahead Of Brexit Conlcusion
The coronavirus
Did the coronavirus safety measures kill the flu season?
Pfizer closely monitoring worker after severe adverse reaction to vaccine.
Pfizer "Closely Monitoring" Alaska Health Worker After "Serious Adverse Reaction" To Vaccine
China
China retrenches ‘belt and road’ initiative.
China Retrenches on Belt and Road Initiative as Defaults Rise | naked capitalism
Bottom line. How one investor is managing the ‘bubble’.
When Stocks Moon - Upslope Capital Management
There is no shame in losing money in a stock.
Lost Money on Stocks? Have No Shame - Safal Niveshak
News on Stocks in Our Portfolios
General Mills (NYSE:GIS): FQ2 Non-GAAP EPS of $1.06 beats by $0.09; GAAP EPS of $1.11 beats by $0.13.
Revenue of $4.72B (+6.8% Y/Y) beats by $70M.
Accenture (NYSE:ACN): FQ1 Non-GAAP EPS of $2.17 beats by $0.12; GAAP EPS of $2.32 beats by $0.26.
Revenue of $11.76B (+3.5% Y/Y) beats by $400M.
Accenture (NYSE:ACN) declares $0.88/share quarterly dividend, in line with previous.
Altria (NYSE:MO) declares $0.86/share quarterly dividend, in line with previous.
MSC Industrial Direct (NYSE:MSM) declares $0.75/share quarterly dividend, in line with previous.
What I am reading today
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Analyst's Disclosure: I am/we are long acn, gis, mo, MSM.
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