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Barbie is a HOT date……

Toymaker Mattel said Thursday that its sales nearly doubled as families spent more on toys for their children, helped by more disposable income due to government stimulus checks. The company’s stock rose more than 7% in extended trading. Typically, the first quarter is a weak period for toy sales, as it follows the influx of sales during the holiday quarter. Mattel CEO Ynon Kreiz also credited the company’s turnaround efforts, and said it had grown its market share for three consecutive quarters. “We are strengthening our position as a consistent leader in the toy industry,” he said. “We believe we are very well-positioned to improve profitability and accelerate topline growth in 2021 and beyond.” Revenue rose 47% to $874.2 million from $594 million a year ago, beating analysts’ expectations of $684.2 million. The company continued to see strong sales of dolls in the latest period, with net sales of its American Girl brand rising 22%. Barbie, Mattel’s most known brand, also grew in popularity due to new product launches and innovations. “Barbie’s cultural relevance truly has never been stronger,” said Richard Dickson, Mattel’s president and chief operating officer. “We’ve been leaning into diversity, inclusivity and social impact and we’ve seen this reflected in the success of Fashionistas, which also had double-digit increases.” He also added that products like Color Reveal and Barbie Extra grew incrementally in the first quarter. During a conference call with analysts, Mattel said it expects revenue to rise 6% to 8% this year, in constant currency. Previously, the company was aiming for a mid-single digit sales gain this year. The higher forecast reflects not only the strong sales in the first quarter, but the company said it was “off to a strong start in the second quarter.” “We believe we are well-positioned to gain momentum for the full year,” said CFO Anthony DiSilvestro, in a press release. Nick Note: Even barbie is flying off the shelf. I have never seen a hotter economy… And Wall Street still does not get it!

 

 

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US new home sales rise 20.7% in March

WASHINGTON, April 23 (Reuters) – Sales of new U.S. single-family homes rebounded more than expected in March, likely boosted by an acute shortage of previously owned houses on the market.

The Commerce Department said on Friday that new home sales surged 20.7% to a seasonally adjusted annual rate of 1.021 million units last month. Economists polled by Reuters had forecast new home sales, which account for a small share of U.S. home sales, increasing to a rate of 886,000 units in March.

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United States Markit Manufacturing PMI above expectations (60.5) in April: Actual (60.6)

Hot Hot Hot

WASHINGTON (Reuters) – U.S. factory activity powered ahead in early April, but manufacturers increasingly struggled to source raw materials and other inputs as a reopening economy leads to a boom in domestic demand. Data firm IHS Markit said on Friday its flash U.S. manufacturing PMI increased to 60.6 in the first half of this month. That was the highest reading since the series started in May 2007 and followed a final reading of 59.1 in March. Economists polled by Reuters had forecast the index rising to 60.5 in early April. A reading above 50 indicates growth in manufacturing, which accounts for 11.9% of the U.S. economy. More than half of American adults have had at least one vaccine dose, according to the U.S. Centers for Disease Control and Prevention (CDC). A third of U.S. adults are fully vaccinated, as well as 26% of the population overall. That, together with the White House’s $1.9 trillion COVID-19 pandemic rescue package, has allowed for broader economic re-engagement, unleashing pent-up demand. “The U.S. economy is enjoying a strong start to the second quarter, firing on all cylinders as loosening virus restrictions, an impressive vaccine roll-out, a brighter outlook and stimulus measures all helped boost demand,” said Chris Williamson, chief business economist at IHS Markit. But the strong demand is pushing against supply constraints. The pandemic, now in its second year, has disrupted labor at factories and their suppliers, causing shortages that are boosting prices of raw materials and other inputs. The IHS Markit survey’s measure of prices paid by manufacturers jumped to the highest level since July 2008. It attributed the higher input prices to “severe supplier shortages and marked rises in transportation fees.” The continued rise in input costs is one of many factors expected to drive inflation above the Federal Reserve’s 2% inflation target this year. Fed Chair Jerome Powell has expressed confidence that the supply chains will adapt and become more efficient, and prevent prices from remaining higher for a sustained period. The raw material squeeze is most evident in the automobile industry, where a global semiconductor shortage has forced production cuts at motor vehicle assembly plants. According to IHS Market supply shortages were causing backlogs of uncompleted work “of a magnitude not surpassed for over seven years.” The IHS survey’s new orders measure increased and as a result, factories boosted hiring. The improvement in activity also spilled over to the services sector, which has been disproportionately impacted by the pandemic. The IHS Markit flash services sector PMI jumped to 63.1, the highest since the series started in October 2009, from a final reading of 60.4. It said growth in the services sector, which accounts for more than two-thirds of U.S. economic activity, was driven by “stronger client demand and the reopening of many businesses amid the easing of restrictions.” The strength in manufacturing and the services industries boosted overall business activity. The survey’s flash composite PMI output index, which tracks the manufacturing and services sectors, rebounded to 62.2. That was also the highest reading since the series started in October 2009 and followed 59.7 in March Nick Note: Pay tax on profits is a problem we all wish to have…. The hard part is getting those profits to begim with. How would you like the problem of having to pay 48% tax on 2 million in profits? its a great problem to have. Does anyone think people will stop trading because the tax they will have to pay has gone up….. Beyond stupid

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Chill Out…. This Capital Gains Tax Increase in NOT a Done Deal and Historically It has No Effect on Stock Market Valuations

Nick Note: Let me see if i understand this. People will stop making money because their tax rate goes up? Does that make any sense. So what are the funds and traders going to do?  Not trade and get a hot dog wagon. This is simply hysterics and stupidness. Do not let them make youa  asshole Through the years the capital gains tax rate has risen and fallen. its a political football. See the historic chart of the capital gains tax rate

the chart is a little hard to read its the red line we are looking at. In 1954 the captical gains rate was 25%. In 1977 the rate was 40%. In 2010 it was 10% and now its 22%. So as you can see its a political yo yo. But here is where it gets interesting. the next chart is the capital gains tax rate and the stock market. The black line is the long term capital gains tax rate. at the time of the 1929 stock market crash the rate was 10% coming off of a 1920 high of 75%. During the 1950’s and 1960’s it was around 20%. When they lowered the rate in the 1980’s the rolling average total return of the  stock market dropped…. the green line is the total individual marginal tax rate. As you can see their is no correlation to stock market performance on a total return bases and ANY tax rate… This is just the lobbyists lining up to collect fees from both sides of this tax debate……

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Dow drops 200 pts on Biden capital gains tax hike report

United States stocks extended losses on Thursday with the Dow dropping more than 200 points after media reports emerged that US President Joe Biden is set to propose hiking the capital gains tax for the wealthy to 39.6% which would, coupled with the existing net investment income tax of 3.8%, bring federal tax rates for investors to 43.4%. The Dow Jones slid 0.67% or 227 points at 1:18 pm ET. The Nasdaq 100 fell 0.71% at 1:23 pm and the S&P 500 lost 0.45% a minute later. Nick Note: this is a stupid knee jerk reaction. First of all this will never pass. Its a start of a negotiation session a trial balloon. And if it does go through it will not take effect until the 2022 tax year. So its party time. Ride the rallu and book your profit when and if the legislation passes in a year or more. First the market zooms zooms zooms. And then they kill the golden goose. And then the democrats are driven out of wellington on a rail come midterm elections. Its been proven jobs are not created by left liberals commies. The lower the capital gains tax the more business formation and the more jobs created… this is going nowhere for now and will end in a MUCH smaller tax increase for 2022….

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U.S. leading indicator index suggests economy is gathering momentum

The index of U.S. leading economic indicators rose 1.3% in March, The Conference Board said Thursday.  All 10 components of the index were positive, suggesting economic momentum in the near term, said Ataman Ozyildirim, senior director of economic research at The Conference Board. The firm now projects year-over-year economic growth could reach 6% in 2021, he said. The index fell 0.1% in February, revised down from the initial estimate of a 0.2% gain. The separate Chicago Fed National Activity index was 1.71 in March, improving from a negative 1.2 in the prior month. The 3-month moving average of the CFNAI was 0.54 in March following 0.07 in February. The most recent pattern of the CFNAI appears to show the economy reverting to its pre-pandemic trend, said Josh Shapiro, chief U.S. economist at MFR Inc. Earlier Thursday, the Labor Department reported weekly jobless claims fell sharply for the second straight week.

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US jobless claims down by 39,000 to 547,000, a 13-month low

Applications for  unexpectedly plunged to a fresh pandemic low as the job market recovery gathers steam. Initial claims in regular state programs decreased by 39,000 to 547,000 in the week ended April 17, Labor Department data showed Thursday. Economists in a Bloomberg survey estimated 610,000 claims. The prior week’s data was revised up to 586,000. The job market is strengthening as employers look to fill positions that were left empty by pandemic restrictions that have now been eased. Growth should speed up even more following a nationwide goal of administering an average of three million vaccinations per day. Nick Note: The economic recovery is busting out all over…. EVERY indicator i follow is flashing BOOM TIMES

 

 

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Wall Street Profits Like Never Seen Before

Blackstone notches record $1.75 billion profit

Blackstone Group Inc. swung to a record quarterly profit as its focus on fast-growing companies helped the value of its investments climb more than the broader market. The investment giant posted net income of $1.75 billion, or $2.46 a share, for the first quarter. That compares with a loss of $1.07 billion, or $1.58 a share, in the coronavirus-battered first quarter of 2020. The value of Blackstone’s private-equity portfolio climbed by 15.3% in the latest period, far exceeding the 5.8% gain for the S&P 500. The firm’s recent emphasis on growth companies, including online-dating platform Bumble Inc. and genealogy company Ancestry.com Inc., propelled the gains, Blackstone President Jonathan Gray said in an interview.

AT&T posts Q1 revenue at $43.9B, up 2.7%

AT&T Inc. reported on Thursday its first-quarter revenue of $43.9 billion, above expectations of some $42.6 billion and rising 2.7% compared to the same period last year. The diluted earnings per share (EPS) stood at $1.04, up 65% year-on-year. Net income came in at $7.9 billion, a 61% increase compared to Q1 2020. “We continued to excel in growing customer relationships in our market focus areas of mobility, fiber and HBO Max,” said AT&T CEO John Stankey. “We had another strong quarter of postpaid phone net adds, higher gross adds, lower churn and good growth in Mobility EBITDA. We also continue to increase penetration in markets where we offer fiber broadband and we’re moving quickly to deploy more fiber. HBO Max continued to deliver strong subscriber and revenue growth in advance of our international and AVOD launches planned for June

Dow reports over 300% jump in EPS to $1.32 in Q1

American commodity chemical company Dow Inc. announced on Thursday its earnings per share in the first quarter of 2021 amounted to $1.32, up over 300% compared to the same quarter a year earlier and above analyst estimates. Meanwhile, the update revealed net sales rose 22% on the year to $11.9 billion during the same period driven by sales growth and pricing gains in all segments. Commenting on the results, Dow Chairman and Chief Executive Officer Jim Fitterling said that despite supply constraints, the company saw growth in demand “as the economic recovery continued to broaden, most notably in packaging, construction, mobility, electronics and consumer durables end-markets.”

SAP: Q1 EPS at €0.88, up 29% YoY

SAP SE reported on Thursday that its diluted earnings per share rose by 29% year over year to €0.88 in the first quarter of fiscal 2021. Total revenue landed at €6.35 billion after declining 3% from the first trimester of 2020, while operating profit dropped 21% on an annual basis to €960 million in the three months that ended on March 31, 2021. “We had the highest order entry growth across cloud and software in five years while posting the strongest increase in Non-IFRS operating profit and margin in a decade. Free cash flow was up double-digit compared to a record prior year. In the mid term SAP’s expedited shift to the cloud will accelerate topline growth and significantly increase the resiliency and predictability of our business,” CFO Luka Mucic noted in the press release.

 

 

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Dow continues to rise, up more than 250 points

The Dow Jones Industrial Average index continued its rise today jumping 260 points to 34070  at 2:01 pm ET, for an increase of 0.77%, as United States President Joe Biden announced 200 million vaccines have been administered in the US. Dow Inc. led the index as it was up by 3.27% at 2:11 pm ET. The S&P 500 was also in the green rising by 0.68% at 2:07 pm ET, with DISH Network Corp leading with an increase of 10.45% at the same time. The Nasdaq 100 was also up 0.51% at 2:09 pm ET, as Intuitive Surgical was ahead of the pack increasing 9.62% a minute later. Nick Note: this is a powerful rally  which has\a long way to go. Remember no market goes straight up… its the nature of the beast……

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Dow jumps more than 200 pts, Wall Street turns to green

Shares on the major stock market indexes in the United States rebounded to green with the Dow Jones Industrial Average rising by more than 200 points. The Dow was up by 0.53% at 10:38 am ET, with Dow Inc. leading the pack with an increase of 2.19% a minute later. The Nasdaq 100 was up 50 points. The S&P 500 rose by 0.34% at 10:40 am ET, as Norweigan Cruise Line Holdings Ltd were up 7.25% at 10:41 am ET.

Verizon: Q1 revenue grows 4% YoY to $32.9B

Verizon Communications Inc. reported on Wednesday that its revenue totaled $32.9 billion in the first quarter of fiscal 2021, up 4% in comparison to the same timespan the year prior. Net income amounted to $5.4 billion in the three months ending with March 31, 2021, jumping 25.4% from the corresponding trimester in 2020. The company’s diluted earnings per common share stood at $1.27, rising 27% compared to the first quarter of the previous year. Operating income gained 18.1% year on year to reach $7.8 billion. “This year began with a transformative milestone for our company with our success in the recent C-Band spectrum auction. We continue to strengthen our networks, execute on our Network-as-a-Service strategy and focus on the five vectors that underpin our growth framework and position us to deliver success in 2021 and beyond,” Chairman and CEO Hans Vestberg noted.

Halliburton reports $3.45B revenue in Q1, up 6.2%

Haliburton Company released its earnings results for the first quarter of fiscal 2021, revealing a net income of $170 million, or $0.19 per diluted share. This compares to a net loss of $235 million, or $0.27 per diluted share for the last trimester of 2020. The total revenue was $3.45 billion, a 6.2% increase compared to the previous three-month period, excluding impairments and other charges. “I am pleased with our first quarter performance, which demonstrates the benefits of our strong operating leverage in a recovering global market.” said Halliburton President and CEO Jeff Miller. “We achieved total company revenue of $3.5 billion and operating income of $370 million, representing increases of 7% and 6%, respectively, compared to revenue and adjusted operating income in the prior quarter.”

Netflix adds 3.98M subscribers in Q1, misses estimates

Netflix Inc. announced on Tuesday that the number of its subscribers in the first quarter of 2021 climbed by 3.98 million to 208 million, missing estimates. A year earlier, the company added 15.77 million subscribers in the corresponding period. “We believe paid membership growth slowed due to the big Covid-19 pull forward in 2020 and a lighter content slate in the first half of this year, due to Covid-19 production delays. We continue to anticipate a strong second half with the return of new seasons of some of our biggest hits and an exciting film lineup,” Netflix said in a letter to shareholders. The streaming giant’s revenue in the three-month period jumped 24% year on year to $7.2 billion, while diluted earnings per share (EPS) stood at $3.75, up from $1.57 reported in the first quarter of 2020. Nick Note: i have never seen hotter earnings…….. Remember the stool…. Vaccines, stimulat checks and set the captives free.