The Morning Call
5/12/21
The Market
Technical
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.
Big-Tech Bloodbath Continues After Biggest Sell-Program In History
Fundamental
Headlines
The Economy
US
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.
US Core Consumer Prices Explode Higher At Fastest Pace Since 1981
International
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.
Other
The Fed
The Fed abandons long held inflation policy.
The Fed does a quiet about-face on inflation
Jim Grant: the Fed can’t control inflation.
Jim Grant: The Fed Can't Control Inflation
Biden’s Plan
Weak jobs report shows limits of stimulus.
Weak Jobs Report Shows Limits of 'Stimulus' | National Review
Inflation
It is just starting.
Inflation: It's Just the Start
The coronavirus
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).
Https://nalert.blogspot.com/2021/05/talk-on-viral-issue-realities-short.html
Bottom line.
What can you do about high valuations?
What Can You Do About High Valuations? - Compound Advisors
For those who missed Stan Druckenmiller’s Squawk Box appearance.
"We're In A Raging Mania" - Druckenmiller Warns "Fed Is Endangering Dollar Reserve Status"
The psychology of QE.
The Psychology Of QE Is Far More Important Than The Amount Of It
News on Stocks in Our Portfolios
T. Rowe Price (NASDAQ:TROW) declares $1.08/share quarterly dividend, in line with previous.
Cummins (NYSE:CMI) declares $1.35/share quarterly dividend, in line with previous.
3M (NYSE:MMM) declares $1.48/share quarterly dividend, in line with previous.
ADP (NASDAQ:ADP) has priced public offering of $1B of its 1.70% senior notes due 2028.
What I am reading today
Three social security myths.
Don't believe everything you hear: 3 Social Security myths that could ruin your retirement
The next natural disaster is on the way and we are not prepared.
The world’s largest emitters of carbon dioxide.
Political Calculations: The World's Largest Emitter of Carbon Dioxide
It has never been harder to be an MLB hitter.
All the Reasons Why It Has Never Been Harder to Be an MLB Hitter
Quote of the day.
Mediterranean diet may protect brain from Alzheimer’s.
Mediterranean Diet May "Protect" Brain From Alzheimer's Disease, Study Says
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