The Morning Call--Beware The Speculative Frenzy
The Morning Call
2/23/21
The Market
Technical
Monday in the charts.
Big Tech, Bitcoin, & The Buck Battered As Commodities Crash-Up
Fundamental
Headlines
The Economy
US
Month to date retail chain store sales fell slightly less than in the prior week.
The December Case Shiller home price index was up 0.8% versus +1.1% reported in November.
The February Dallas Fed manufacturing index came in at 17.2 versus 7.0 reported in December.
February Dallas Fed Manufacturing
International
December UK unemployment was 5.1%, in line.
January EU CPI was +0.2%, in line.
Other
Update on seven high frequency indicators.
Seven High Frequency Indicators for the Economy
For the optimists.
On the Post-Pandemic Horizon, Could That Be ... a Boom?
Yellen sets stage for higher corporate taxes, yield curve control and a digital dollar.
Yellen Sets The Stage For Higher Corporate Taxes, Yield Curve Control And A Digital Dollar
Inflation
Investor inflation fears are rising.
Opinion: Inflation is rising and so are investors' fears about stocks
Inflation here, there and everywhere.
Inflation Here, There and Everywhere - Knowledge Leaders Capital
What is inflation exactly?
The True Challenge With Inflation Is That So Few Know What It Is
Bottom line. Pay attention to the first two articles below. They address the growing level of speculation in the Market. Most bull markets end when investor greed becomes a dominant driver of securities prices. Both authors are suggesting that the equities markets have reached that stage. That doesn’t mean the feeding frenzy can’t go on; and as long as the Fed keeps pumping and government spending keeps jumping, it seems likely that it will. But their warnings are there. Be mindful of the exogenous event.
Beware the mania.
The frenzy of speculative excess.
A Frenzy Of Speculative Excess
A ‘V’ shaped recovery in earnings.
S&P 500 Earnings: V-Shaped Recovery
Rising rates do not necessarily spell doom for the stock market.
How Does the Stock Market Perform When Interest Rates Rise?
News on Stocks in Our Portfolios
Medtronic (NYSE:MDT): Q3 Non-GAAP EPS of $1.29 beats by $0.14; GAAP EPS of $0.94 beats by $0.22.
Revenue of $7.8B (+1.0% Y/Y) beats by $30M.
Bank of Nova Scotia (NYSE:BNS): Q1 Non-GAAP EPS of C$1.88 beats by C$0.32; GAAP EPS of C$1.86 beats by C$0.30.
Revenue of C$8.07B (-0.9% Y/Y) beats by C$490M.
Bank of Nova Scotia (NYSE:BNS) declares CAD 0.90/share quarterly dividend, in line with previous.
Home Depot (NYSE:HD): Q4 GAAP EPS of $2.65 beats by $0.03.
Revenue of $32.26B (+25.1% Y/Y) beats by $1.69B.
Home Depot (NYSE:HD) declares $1.65/share quarterly dividend, 10% increase from prior dividend of $1.50.
What I am reading today
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