Morning Journal--Polar vortex shock and awe

  News on Stocks in Our Portfolios

 
Hormel Foods Corporation misses by $0.01, misses on revenue

·         Hormel Foods Corporation (HRL): FQ1 EPS of $0.57 misses by $0.01.

·         Revenue of $2.24B (+6.7% Y/Y) misses by $10M.

Economics

   This Week’s Data

            The FOMC released the minutes from its January meeting.  The most important takeaways are (1) tapering is going forward and (2) a change in forward guidance is coming---though no one seems to know what that means.

            http://www.calculatedriskblog.com/2014/02/fomc-minutes-clear-presumption-in-favor.html http://www.zerohedge.com/news/2014-02-19/most-important-line-todays-fomc-minutes

            Weekly jobless claims fell 3,000 versus expectations of a 4,000 decline.

            January CPI came in at +0.1%, in line; ex food and energy, it was up 0.1% versus estimates of up 0.2%.

   Other

            The good, the bad and the ugly of consumer debt (medium):

            http://finance.fortune.cnn.com/2014/02/18/us-consumer-debt/?section=magazines_fortune

            Polar vortex shock and awe (short):

            http://www.zerohedge.com/news/2014-02-19/polar-vortex-shock-and-awe-utility-bill-arrives-and-why-it-will-get-worse-it-gets-b

            ***overnight, both the Chinese and EU flash PMI’s fell.   Plus the Bank of China drained reserves.

            http://www.zerohedge.com/news/2014-02-20/usdjpy-102-tractor-beam-overrides-all-overnight-economic-disappointment

            And the potential for a rising number of defaults from wealth management trusts is rising (medium):

            http://www.zerohedge.com/news/2014-02-19/chinese-dominoes-are-about-fall-complete-list-upcoming-trust-defaults

Politics

  Domestic

Student success and unionized teachers (medium):

http://www.aei-ideas.org/2014/02/whod-a-thunk-it-student-success-is-not-priority-no-1-for-most-unionized-public-school-teachers/

The CBO on a rise in the minimum wage (medium):

http://www.cbo.gov/publication/44995

  International

            China preparing for conflict in the South China Sea? (short):

            http://www.zerohedge.com/news/2014-02-19/china-training-short-sharp-war-japan-us-navy-warns