The Morning Call--Waiving Intellectual Property Rights. That's A Winner.
The Morning Call
5/6/21
The Market
Technical
Wednesday in the charts.
Commodity Chaos Continues, Stocks Refuse To Bounce After Janet's Jolt
Stocks, bonds and higher inflation.
Stocks, Bonds, and Higher Inflation - Compound Advisors
Retail buying starting to fade?
Retail - will you buy stuff again?
Fundamental
Headlines
The Economy
US
Weekly jobless claims were 498,000 versus projections of 540,000.
Initial Jobless Claims Fall To Pandemic Lows But Over 16 Million Americans Remain 'On The Dole'
Q1 preliminary nonfarm productivity increased 5.4% versus forecasts of +4.3%; unit labor costs declined 0.3% versus -0.8%.
The April ISM nonmanufacturing index came in at 62.7 versus estimates of 64.3.
ISM Services: 17 Industries Reported Growth in April
The April services PMI was reported at 64.7 versus expectations of 63.1; the April composite PMI was 63.5 versus 62.2.
International
March German factory orders were up 3.0% versus predictions of +1.7%; the April construction PMI as 46.2 versus 47.5 in March.
March EU retail sales rose 2.7% versus consensus of +1.5%.
The April UK services PMI came in at 61.0 versus forecasts of 60.1; the composite PMI was 60.7 versus 60.0.
Other
The Fed
Handle with care.
Powell flunks his Q&A session.
The Fed Finally Gets Some Tough Questions... And Fails To Answer Them
Biden’s Plan
More on the rich paying their ‘fair share’.
The One Percent: Off With Their Heads!
Higher corporate tax rates will likely slow stock buybacks.
What Could US Corporate Tax Hikes Mean for Share Buybacks?
Talk about f**king up the economy: government decides when it can waive intellectual property rights (for coronavirus vaccine). One question, Joe: who is going the make the next vaccine when/if another pandemic hits? Clowns to the left of me, jokers to the right.
Inflation
Inflation still has not found its way into the labor market.
https://www.ft.com/content/557365b9-4484-4df5-8528-20f61027fc53
The coronavirus
Some lessons.
https://www.vox.com/22409749/us-covid-19-coronavirus-pandemic-response-lessons-learned
Bottom line.
Is there an inflation shock coming?
https://www.zerohedge.com/markets/kolanovic-most-are-unprepared-coming-inflation-shock
Cash flooding into the Market may not be all that great for stocks.
The math does not support ‘buy and hold’.
https://www.morningstar.com/articles/1037077/you-neednt-hold-your-stock-winners
April dividends by the numbers.
Update on Buffett indicator.
More on valuations.
https://www.ft.com/content/773261d2-c68e-41de-93c8-2d76c1528559
This is a decent article on having a selling discipline. However, thinking about the multitude of reasons for selling can make your hair hurt. Plus, it only confuses the issue. You should have two sell prices on every stock in your portfolio. One is a Stop Loss, which can be moved up as the stock advances. The other is a Take Profits Price. I have my discipline. Mine is to Sell Half of my position when a stock reaches a valuation level my work determines as excessive. You can have yours. But have one; and the fewer criteria you have to consider, the easier it is to execute.
News on Stocks in Our Portfolios
Becton, Dickinson (NYSE:BDX): Q1 Non-GAAP EPS of $3.19 beats by $0.15; GAAP EPS of $0.94 misses by $1.25.
Revenue of $4.91B (+16.1% Y/Y) beats by $30M.
What I am reading today
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Analyst's Disclosure: I am/we are long BDX.
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