Daily Market Briefing

U.S. Stock Prices to Likely Pull Back this Week in Response to Negative Readings on Some Key Economic Indicators and Recent Increases in Interest Rates

January 18, 2021: (2:30 am U.S. Eastern Time): The recent readings on some key economic indicators and increases in mid- and long-term U.S. interest rates suggest that U.S. stock prices, in general, will pull back during the week of January 18-22. Looking further out, we at Frazier, Browne and Mayer, LLC, the provider of Money Managers Monitor, expect stocks to peak by the end of March 2021, if they haven't already peaked, and to then trend lower during the ensuing months in response to likely considerable increases in U.S. lending (interest) rates during the months ahead. For more information regarding our analysis of significant economic, geopolitical and financial market developments, and how to profit from the major upturns and avoid the big downturns in the worldwide financial markets, we encourage you to click on the following link to subscribe to our financial market research and advisory journals.

Headline News

January 5-15, 2021

  • U.S. retail sales declined for third consecutive month during December
  • New York Fed's Empire State Manufacturing Index declined for fourth consecutive month during first half of January
  • U.S. unemployment claims rose during week ended January 9 to highest level since August 2020
  • U.S. mortgage applications rose during week ended January 8 to highest level on record
  • U.S. leisure and hospitality businesses terminated 498,000 employees during December while businesses that operated in the professional and business services, retail trade, construction, transportation and warehousing, manufacturing, wholesale trade and financial services industries increased the sizes of their workforces
  • U.S. private-sector employers reduced their workforces by 123,000 during December
  • U.S. mortgage applications declined by 4.2% during week ended January 1, 2021
  • U.S. manufacturing activity appears to have risen during December to highest level since August 2018
  • U.S. construction spending rose at substantially slower month-to-month pace during November, the latest month for which data are available
  • Manufacturing activity in major economies around the world continued to increase during December

Significant Developments

U.S. Economic Developments

U.S. Political Developments

President Trump Signed Consolidated Appropriations Act

12/27/20: President Trump signed into law today the Consolidated Appropriations Act, which is a $2.3 trillion bill that combines $900 billion of economic relief funding for Americans, U.S. businesses and state and local government agencies that have been negatively...

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Earnings Announcements

International Economic Developments

Japan’s Industrial Production Unchanged during November

12/27/20: Japan’s Ministry of Economy, Trade and Industry (“METI”) reported today that industrial production at the country’s factories, mines and utilities was unchanged during November, as compared to the prior month, after increasing during each of the five prior...

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International Political Developments

Coronavirus Continues to Spread

02/26/20: The World Health Organization (“WHO”) reported today that approximately 81,109 people worldwide have now been infected with the coronavirus and that approximately 2,760 people worldwide have died from the disease, with 98% of those deaths occurring in China....

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Company and Stock News

January 15, 2021 Company and Stock News

  • Apple (AAPL) is considering launching a new subscription service that would focus on podcasts, according to several news services.
  • Duke Energy (DUK) plans to retire its Florida coal plants, modernize Florida’s electric grid, offer new electric vehicle charging stations, and support pilot programs for innovative technology, such as microgrids and floating solar pilot projects.
  • Wynn Resorts (WYNN) announced that its WynnBET mobile sports and casino betting application is now available in six U.S. states, including Colorado, Indiana, Iowa, Massachusetts, New Jersey, Nevada, and will soon be available for usage in Tennessee, Michigan and Virginia.
  • Digital Realty (DLR) will relocate its corporate headquarters from San Francisco, California to Austin, Texas.

Stock of Week

Mimecast Limited (MIME)

Mimecast Limited (MIME) is a global provider of cloud-based cyber-attack protection applications for business email, which is the number-one threat to businesses regarding their computer-based data. The company's customers include Barracuda Networks, Alphabet, Microsoft and Symantec Corporation. According to Mimecast’s management, none of the company’s competitors offer the fully-unified and integrated email protection application that it provides.

Composite Fundamental Rating Product Sales & EPS Growth (Qtrly) Profit Margins Financial Liquidity Long-term Debt Institution Buys to Sells
B- A A+ C B- C C

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Investors Monitor 20

Company NameTickerIndustryComposite RatingInvestors Monitor Grade
ProductSales & EPS GrowthProfit MarginsFinancial LiquidityLong-term DebtInstitution Buys to Sells
Alarm.Com HoldingsALRMHome SecurityB-ABCA+CB
Applied OptoelectronicsAAOIFiber OpticsA-A+A+B+A+A+B+
Arista NetworksANETNetwork AppsA+AA+AA+A+A
Control4 CorporationCTRLHome DevicesB-ACCA+A+A
Floor & Décor HoldingsFNDHome FlooringB-AA+CB-C-B+
General ElectricGEConglomerateBAC+B-A+CA
GrubHubGRUBMobile OrdersB+A+AB+A+BC
Malibu BoatsMBUUBoat Mfg.C+ACB-B-C-D
Masimo CorpMASIMedical DevicesA-ABAA+A+B
Micron Technology MUSemiconductorsA-A+AA+A+A+D
Momo Inc. MOMOSocial MediaA+AA+A+A+A+D
Ollie's Bargain Outlet OLLIDiscount StoresB+B+AB+A+AC+
Qualys QLYSInternet SecurityA-AAB+A+A+C
SolarEdge TechnologiesSEDGSolar PanelsA+AAAA+AA
The Trade DeskTTDAdvertisingB+AAC+A+A+B
WalmartWMTRetail StoresB-A+C+CC+A-C+
Weibo CorporationWBSocial MediaA+AA+A-A+A+A
Winnebago IndustriesWGORV Mfg.C-ACCC+DC

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