The Morning Call
Monday in the charts.
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.
December UK unemployment was 5.1%, in line.
January EU CPI was +0.2%, in line.
Update on seven high frequency indicators.
For the optimists.
Yellen sets stage for higher corporate taxes, yield curve control and a digital dollar.
Investor inflation fears are rising.
Inflation here, there and everywhere.
What is inflation exactly?
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 ‘V’ shaped recovery in earnings.
Rising rates do not necessarily spell doom for the stock market.
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
Life is too precious to be lived mechanically.
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Analyst's Disclosure: I am/we are long bns, hd, mdt.
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