Archive for November, 2020

• Best November in Decades
  Eddy Elfenbein, November 30th, 2020 at 11:47 am

  Today is the final trading day of November 2020 and it looks to be a very good month for stocks. Through Friday, the S&P 500 was up over 11% this month. The indexes are down so far today, but nothing too troubling. Our Buy List is down but not as much as the overall market.

  There’s not much in the way of economic news today. The pending-home-sales report showed a decrease of 1.1% for October. That’s not too bad. Over the past year, contract signings are up over 20%.

  We’ll soon get the key turn-of-the-month data reports. ISM is tomorrow. ADP comes out on Thursday. Initial claims is Thursday, and the big official jobs report is on Friday. The economy has been showing some early signs of weakness. I think it’s premature to call it a trend, but more data will give us a better look.

  Here’s a look at the monthly gains of the S&P 500.

  

• Morning News: November 30, 2020
  Eddy Elfenbein, November 30th, 2020 at 7:02 am

  France Thought It Could Reverse Globalization, But It’s Still Bleeding Jobs

  The World Is About to Find Out How Tough Biden Will Be on China

  Yellen to Forge U.S. Economic Comeback as Biden’s Treasury Pick

  Inflation Believers Playing Long Game Are Winning as They Wait

  Equity Investors Take Stock of Best Month Ever

  Cyber Monday Set To Be Biggest Online Shopping Day In U.S. History

  The Luxury E-Commerce Wars Heat Up

  S&P Global Agrees to Buy IHS Markit for About $39 Billion

  Why Novavax Could Be a Bigger COVID Vaccine Winner Than Pfizer and Moderna

  Tony Hsieh Had a 2-Word Employment Policy at Zappos, and It Was Absolute Genius

  Hollywood’s Obituary, the Sequel. Now Streaming.

  Joshua Brown: The Portfolio Puzzle of Our Lifetime

  Michael Batnick: Is Robinhood Good For Investors?

  Ben Carlson: Talk Your Book: Investing in Bitcoin & The Best Case Scenario For Bitcoin

  Howard Lindzon: Co-Founder and President of Fundamental Global Lewis Johnson Joins Me on Panic with Friends to Discuss the Business of Investing – from Asset Management to the Nature of Cycles

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• Morning News: November 27, 2020
  Eddy Elfenbein, November 27th, 2020 at 7:03 am

  Brexit Is Nipping at London’s Role as a Financial Powerhouse

  A Job for Life, or Not? A Class Divide Deepens in Japan

  Stocks Rack Up the Records, Dollar Sings the Blues

  Bitcoin Edges Lower to Extend Biggest Slump Since Pandemic Hit

  U.S. Money-Market Investors Face Multiple Grim Trends in 2021

  The Rich Kids Who Want to Tear Down Capitalism

  Amid Pandemic, Earlier Promotions, Black Friday Takes New Shape

  This Year’s Black Friday Designer Fashion Sales May Not Be What You Think.

  The Surprising Lesson Black Friday and Cyber Monday Can Teach Stock Market Investors

  Southern California Port Jam Puts Christmas Toy Supplies In Doubt

  Pushed by Pandemic, Amazon Goes on a Hiring Spree Without Equal

  Suspected North Korean Hackers Targeted COVID Vaccine Maker AstraZeneca

  VW Speeds Up Work on Small Electric Car, Culls Combustion Models

  Six U.S. Oil Executives Are Convicted of Corruption in Venezuela

  Ben Carlson: Some Things the Pandemic Has Given Me a Greater Appreciation For

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• Morning News: November 26, 2020
  Eddy Elfenbein, November 26th, 2020 at 6:35 am

  A Soaring Monument to Beauty in China Is Stirring Passions. Mostly Anger.

  Expats Are Snubbing London, Paris and Hong Kong

  U.S. Economy Stumbles as the Coronavirus Spreads Widely

  Bitcoin Plunges Along With Other Coins

  The Russell 2000 Has Had A Powerful November — And The Gains Aren’t Over

  Here’s Why Elon Musk Isn’t the World’s 2nd Richest Man

  Bezos Targeted by Shipping Groups to Save Stranded Seafarers

  UPS and FedEx Reportedly Facing Shortage of Delivery Vans

  Disney Increases Planned Layoffs to 32,000 As Virus Hits Theme Parks

  Penguin Random House to Buy Simon & Schuster

  Foxconn to Shift Some Apple Production to Vietnam to Minimise China Risk

  After Admitting Mistake, AstraZeneca Faces Difficult Questions About Its Vaccine

  Teva, Cephalon Fined $72 Million by EU for Pay-for-Delay Pact

  Joshua Brown: Morgan Housel, Christine Benz, Brian Portnoy and I Talk Money & Investing

  Howard Lindzon: Dow 30,000 and High Performance Underwear

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• The Dow Rises 100-fold in 92 Years
  Eddy Elfenbein, November 25th, 2020 at 11:17 am

  The S&P 500 closed yesterday at another all-time high. The Dow closed above 30,000 for the first time ever.

  The Dow closed at 300.00 on the nose on December 31, 1928, so that’s 100-fold in 92 years. The index first closed above 3,000 on April 17, 1991.

  The market is down so far today. This morning, the government said the report on Q3 GDP growth was unrevised at 33.1%. Bear in mind, this comes after a massive drop for Q2.

  Initial jobless claims rose to 778,000. This is the second weekly rise in a row. This is not a good sign, but I want to see more data.

  New home sales for October came in at 999,000. That’s the annualized number. The three months prior to that were all revised higher.

  For October, personal spending increased by 0.5% while personal income decreased by 0.7%.

• Morning News: November 25, 2020
  Eddy Elfenbein, November 25th, 2020 at 7:04 am

  In A Year of No Trade Fairs, Germany Takes It Hard

  India Import Hurdles Hit Apple iPhone, Xiaomi Devices from China

  China Vaccine Maker Seeks Approval for Public Use of Covid Shot

  Yellen Set to Restore Treasury-Fed Cooperation, With Eye on GOP

  Mnuchin Plans to Put $455 Billion Beyond Yellen’s Easy Reach

  Catch-All Travel Insurance Booms As U.S. Flyers Take Thanksgiving Risks

  From Buffett w/Love: Meet Activists Shaking Up Small Caps

  ‘Thumb-Stopping.’ ‘Humaning.’ ‘B4H.’ The Strange Language of Modern Marketing.

  Here’s What’s Pushing Tesla Stock Toward $600 — and Beyond

  Purdue Pharma Pleads Guilty To Criminal Charges In Opioid Case

  Ben Carlson: What Happens to Small Caps After a Huge Monthly Gain?

  Nick Maggiulli: We Begin Our Lives as Growth Stocks, But End Our Lives As Value Stocks

  Howard Lindzon: The FOMO Is Back…BUT…What If This Is The Start Of The Bull Market?

  Michael Batnick: The Winners Won & Animal Spirits: Is Bitcoin the New Gold?

  Joshua Brown: Who Are You Listening To?, The Fortune 2021 Roundtable & The Bears Get Slaughtered. Again

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• Becton, Dickinson Hikes Dividend for 49th Year in a Row
  Eddy Elfenbein, November 24th, 2020 at 5:48 pm

  Becton, Dickinson (BDX) is raising its quarterly dividend from 79 to 83 cents per share. That’s an increase of 5.1%.

  This is their 49th annual dividend increase in a row.

  The dividend will be payable on December 31 to holders of record on December 10. The indicated annual dividend rate for fiscal year 2021 is $3.32 per share.

  “This is the 49th consecutive fiscal year in which we have raised our dividend. This increase reflects our confidence in our long-term outlook, as well as our ongoing commitment to return capital to our shareholders and create value for all stakeholders,” said Tom Polen, CEO and president of BD. “COVID-19 has a significant impact on health care utilization globally. However, our strong execution enabled us to respond swiftly to the pandemic and close the year delivering revenue growth in fiscal Q4, offsetting continued COVID-19 headwinds with the launch of multiple innovative COVID-19 diagnostic solutions while at the same time advancing our long-term growth strategy. We remain focused on partnering with governments, health care systems, and health care professionals to navigate the COVID-19 pandemic—including providing access to our SARS-CoV-2 diagnostics tests and injection devices for future global vaccinations campaigns—as well as supplying products and solutions for ongoing care for patients around the world. We are steadfast in our commitments, including completing our Alaris 510(k) submission, investing in growth initiatives, simplifying our processes, and empowering our organization.”

• Hormel Foods Reports Fiscal Q4 Earnings
  Eddy Elfenbein, November 24th, 2020 at 10:17 am

  The Case-Shiller report came out this morning and it showed a 7% increase in home prices for the 12 months ending in September. Because of this week’s holiday, we’re getting reports on GDP, initial claims and durable goods tomorrow.

  The stock exchanges will be closed on Thursday for Thanksgiving. Trading will reopen on Friday, but the exchanges will close at 1 pm ET.

  This morning, Hormel Foods (HRL) reported fiscal Q4 earnings of 43 cents per share. That was one penny below Wall Street’s forecast.

  Here are some details:

  • Volume of 1.2 billion lbs., down 2%; organic volume1 down 3%
  • Net sales of $2.4 billion, down 3%; organic net sales1 down 4%
  • Operating margin of 11.4% compared to 12.8% last year
  • Effective tax rate of 15.9% compared to 21.0% last year
  • Diluted earnings per share of $0.43, down 9% from $0.47

  The shares are currently down a little over 2%.

• Morning News: November 24, 2020
  Eddy Elfenbein, November 24th, 2020 at 7:07 am

  Janet Yellen, Biden’s Expected Treasury Pick, Has Broken More Than Gender Barriers

  Bitcoin Close To All-Time High After Topping $19,000

  Tech Analysts See Signs of Excessive Optimism in 2020’s Rally

  As Customers Move Online, So Does the Holiday Shopping Season

  Millions of Americans Expect to Lose Their Homes as Covid Rages

  Ad Council’s Challenge: Persuade Skeptics to Believe in Covid Vaccines

  Ford’s New CEO Tackles Warranty Costs In Bid To Boost Profit

  GM Hits Reverse On Trump Effort To Bar California Emissions Rules

  Elon Musk Overtakes Bill Gates to Grab World’s Second-Richest Ranking

  Trump Wars II: The Loser Strikes Back

  Japan Committed ‘Abuse’ By Keeping Carlos Ghosn in Jail, UN Panel Says

  Apple Security Chief Accused Of Trying To Bribe Sheriff’s Office

  Ben Carlson: The Youths Are Coming For The Housing Market

  Joshua Brown: New Home Sales Up A Cartoonish 48% Year-Over-Year! LOL & Small Caps Break Out of Two Year Consolidation

  Michael Batnick: Move Over, Millennials & Total Household Debt

  Jeff Carter: Classic Business Principles Matter-Especially For Venture Returns

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• Hormel Foods Hikes Dividend by 5.4%
  Eddy Elfenbein, November 23rd, 2020 at 5:34 pm

  Hormel Foods (HRL) is increasing its quarterly dividend from 23.25 cents to 24.5 cents per share. This is the 55th annual dividend increase in a row.

  The first dividend will be paid on February 16 to stockholders of record at the close of business on January 11.

  Since becoming a public company in 1928, Hormel Foods has paid a regular quarterly dividend without interruption.