QuiCQ 15/08/2024
Tucking along
Prefer to read today’s QuiCQ in PDF format? No prob, download it here!
"The first rule is not to lose. The second rule is not to forget the first rule."
— Warren Buffett
The CPI came, saw and was large ignored. Despite at 2.9% having fallen back into the Fed's target zone (two percent +/-1%), the market's reaction was very muted. However, we would argue that most of the reaction had already taken place the previous day after release of the Producer Price Index number. Nevertheless, despite an 'only' 0.4% up move on the S&P 500, in terms of breadth, 8 of 11 sectors closed green, with financials (+1.22%) leading and communications (-0.57%) lagging, advance-decline ratio was 3-to-2 and 42 stocks hit a new 52-week high versus only 4 a new 52-week low.
In corporate news, Kellanova (K +8.3%) of Kellog's Corn Flakes and Pringles fame, accepted a takeover bid from Mars, from, well Mars fame… In Europe, dental implants producer Straumann shot up nearly 14% higher on the back of a solid set of results.
In Asia, most equity markets are firmer this morning, led by Japanese stocks, as GDP reported in the country of the rising sun surprised strongly to the upside.
Today, GDP and Industrial Production are due in the UK amongst other and in the US Initial Jobless Claims, Empire Manufacturing, Retail Sales and Industrial Production are reported.
Today's chart of the day is probably not the sophisticated we have ever put together, but it probably ranks as one of the more impressive ones. Left (red) shows Warren Buffet's holding of Treasury Bills in billions of US Dollar; right shows the inventory of the same at the (NY) Federal Reserve Bank. Now, admittedly Buffet is a self-declared non-believer in market timing, but he is definitely also known as an astute investor. Stay tuned …
