Your Tuesday Blip 2/9/21

Your Tuesday Blip 2/9/21

After hitting record levels yesterday markets traded in mixed fashion with the Dow down and the NASDAQ up. At the close the Dow was off 9.9 points to 31,375 on lighter trading volume. Both IBD and BTS (Not the Korean Boy Band!) continue to be positive on the markets. Isaac at BTS said high yield markets are showing strength which is indicative of an improving economy.
While the core CPI increased 1.6% for the year through December, pricing action in Treasury markets continue to indicate increasing odds for higher inflation. With the Federal Reserve continuing its easy money policies and Treasury Sec. Janet Yellen making the case for President Biden’s stimulus package many are starting to ask if 2021 will be the year that marks a shift in inflationary trends where rising prices become the norm.
Simon Property Group, owner or shopping malls and retail outlets across the US reported earnings yesterday and in doing so gave a glimpse of how the hard hit sector is doing. SPG said they collected 90% of net billed rents for Q2, Q3 and Q4 combined and that while current revenue and profit results missed guru estimates CEO David Simon said that he was confident they had turned a corner and are expecting growth in earnings and cash flow in 2021. The company raised its forward guidance and shares moved higher in market action.
Speaking of real-estate, The Puget Sound Business Journal had a story about downtown Seattle companies relocating north to Edmonds and Snohomish County. The main reason cited is street crime and employers are concerned for the safety of workers. Seattle’s office vacancy rate has recently risen to a 5 year high and sits at 12.3%. While the downtown condo and office markets are soft, surrounding areas like east King County and Snohomish County are seeing robust demand.