Entering text into the input field will update the search result below

The Morning Call--Enjoy The Ride But Be Careful

Feb. 05, 2021 9:18 AM ETCHRW, CMI, ITW, QCOM
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The Morning Call


The Market


Thursday in the charts.

Redditors Abandon Squeezes, Panic-Buy Penny-Stocks As USD Hits 2-Mo Highs

Surging dollar could spell problems for equities.

Surging Dollar Could Be The Bull In Stock Rally's China Shop



The Economy


December factory orders rose 1.1% versus estimates of +0.7%.

The December trade deficit was $66.6 billion versus projections of $65.9 billion.

January nonfarm payrolls increased 49,000 versus expectations of 50,000; however, private payrolls were up 6,000 versus 50,000; the unemployment rate was 6.3% versus 6.7%.

January Payrolls Miss: Only 49K Jobs Added As Unemployment Rate Tumbles To 6.3%


December Japanese household spending rose 0.9% versus forecasts of -1.9%; December leading economic indicators came in at 94.9 versus 96.1 in November.

December German factory orders fell 1.9% versus consensus of -1.0%.


December vehicle sales per capita.

Vehicle Sales Per Capita as of December 2020

Hotel occupancy down 29.6% YoY.

Hotels: Occupancy Rate Declined 29.6% Year-over-year

JP Morgan’s consumer data shows consumer spending slipping.

JPMorgan's Nationwide Consumer Data Slips As COVID 'Dark Winter' Drowns Recovery

Keep on borrowing and buying.

Keep on borrowing and buying

Fiscal Policy

Senate passes Biden’s $1.9 trillion relief package.

Senate Dems Push Through $1.9TN Stimulus Blueprint As Harris Casts First Tiebreaker

Short Squeeze

The truth about naked short selling.

Naked Short Selling: The Truth Is Much Worse Than You Have Been Told

Bottom line. It looks like we will get the full $1.9 trillion stimulus package which is chocked full of unnecessary/unproductive spending. This will keep the budget deficit and national debt on track the achieve ever more glorious highs. And with the Fed out there pumping, what more could investors ask for? It may not be good for the long term secular growth of the economy but apparently not enough of us care to make a difference. Enjoy the ride but exercise some caution and take profits/build cash when a holding reaches full valuation.

More on valuations.

Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator

What game are you playing?


Part 2.


News on Stocks in Our Portfolios

Cummins (NYSE:CMI): Q4 GAAP EPS of $3.36 beats by $0.54.

Revenue of $5.83B (+4.5% Y/Y) beats by $650M.

Qualcomm (NASDAQ:QCOM): FQ1 Non-GAAP EPS of $2.17 beats by $0.07; GAAP EPS of $2.12 beats by $0.30.

Revenue of $8.24B (+62.2% Y/Y) misses by $20M.

Illinois Tool Works (NYSE:ITW): Q4 GAAP EPS of $2.02 beats by $0.24.

Revenue of $3.5B (+0.9% Y/Y) beats by $190M.

C.H. Robinson Worldwide (NASDAQ:CHRW) declares $0.51/share quarterly dividend, in line with previous.

What I am reading today

Reasons for optimism about artificial intelligence.


Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.

Analyst's Disclosure: I am/we are long cgrw, cmi, itw, QCOM.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.