Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Citi analyst Sathish Sivakumar sees no signs of improvement in global supply chain congestion,
“We update our weekly freight data tracker which covers both sea and air freight. In sea freight, US West Coast port congestion has continued to decrease compared to last week. The seven day moving average of vessel capacity at port/anchorage for this week is 0.80m TEU [20 foot equivalent unit] vs. last week’s 0.82m TEU. It is a similar on the US East Coast, with the seven day moving average for this week at 0.71m TEU vs. last week’s 0.74m TEU. However, according to the Marine Exchange of Southern California, at the end of last week, there were 94 container ships waiting for LA/LB berths. The backlog was 86 ships when the new system was introduced on November 16.”
“No signs of easing in global supply chain congestion” – (research excerpt) Twitter
The global industrials research team at BofA Securities warns of a global slowdown in manufacturing activity,
“The BofA Industrial Momentum Indicator resumed its downward trend following last month’s short-lived rebound. The Indicator has declined seven of the last nine months. The Indicator peaked in March and its downturn foreshadowed the pullback in cyclicals relative to defensives. The Indicator’s slide this month is due a lower copper price, positioning, and moderation in BofA Ken Hoexter’s Truck Shipper Survey. Indicator leads Global PMI and industrial sales revisions The challenge for cyclicals in the near-term is that the Indicator suggests negative revisions ahead and PMIs to slow. This is on top of rising COVID cases and lingering supply chain issues. Additionally, BofA’s macro indicator, the Global Wave, has peaked and BofA’s strategists prefer high quality/defensive bias. While the Indicator’s downward trend resumes (signal to cyclicals), fundamental analysts highlight NOC, FTV, CSX, and WCN. If the Indicator stabilizes and regains its upward trajectory, fundamental analysts highlight RTX, EMR, FDX, and CNH.”
“BofA warns of a slowdown for global industrials” – (research excerpt) Twitter
Wells Fargo U.S. strategists published their top picks for dynamic growth which includes Canada’s Shopify Inc.,
“The Dynamic Growth Equity List focuses on companies that we believe offer above average growth potential and may be on track to become leaders in the markets they serve. Our objective is to offer investors a list of stocks thay can use to build a well-diversified portfolio or to fill holes in an existing portfolio.”
Companies on the 38-member list that are likely of most interest to Canadian investors include Electronic Arts Inc., Amazon.com Inc., Nike Inc., Planet Fitness Inc., Tesla Inc., Estee Lauder Companies Inc., ABIOMED Inc., Danaher Corp., Illumina Inc., Keysight Technologies Inc., NVIDIA Corp., salesforce.com Inc., Shopify Inc., Splunk Inc., Visa Inc., and Ecolab Inc.
“Wells Fargo Dynamic Growth List part 1″ – (table) Twitter
“Wells Fargo Dynamic Growth List part 2″ – (table) Twitter
Newsletter: “A ‘rude wake-up call’ for buy-the-dip investors” – Globe Investor
Diversion: “The 20 Best Books of 2021″ – The Atlantic
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