The Morning Call
Yesterday was a tough trading day. However, (1) neither the DJIA nor the S&P challenged any support level and (2) they both experienced gap down opens---which will need to be filled before any lengthy decline can begin. In short, it was one day. Follow through.
Tuesday in the charts.
Weekly mortgage applications rose 2.1% while purchase applications were up 0.8%
Month to date retail chains store sales grew less rapidly than the prior week.
The March JOLTS report showed job openings totaled 8.1 million versus estimates of 7.5 million.
April CPI came in at +0.8% versus forecasts of +0.2%; core CPI was up 0.9% versus 0.3%. This means that the Fed is now failing on both its primary tasks: employment high, inflation low. I tol’ you.
March Japanese flash leading economic indicators were 103.2 versus 98.9 recorded in February.
March EU industrial production was up 0.1% versus consensus of +0.7%.
The March UK trade balance was L-2.0 billion versus L-0.9 billion in February; March industrial production was +1.8% versus +1.0%; March GDP was up 2.1% versus +1.3%; Q1 GDP was -1.5% versus -1.6%; Q1 business investment was down 11.9% versus up 5.9% in the prior quarter.
April German CPI was +0.7%, in line.
The Fed abandons long held inflation policy.
Jim Grant: the Fed can’t control inflation.
Weak jobs report shows limits of stimulus.
It is just starting.
This is a great seven minute video excerpt from a TEDx presentation on the negative psychological impact of the virus on our decision making process. (must watch).
What can you do about high valuations?
For those who missed Stan Druckenmiller’s Squawk Box appearance.
The psychology of QE.
News on Stocks in Our Portfolios
What I am reading today
Three social security myths.
The next natural disaster is on the way and we are not prepared.
The world’s largest emitters of carbon dioxide.
It has never been harder to be an MLB hitter.
Quote of the day.
Mediterranean diet may protect brain from Alzheimer’s.
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