I am impressed by soaring oil production in the US, which rose to a new cyclical high of 7.3mbd in mid-May. This output boosts industrial production. It also has been a windfall for the railroad industry where weekly car loadings of petroleum and chemical products has soared 41% over the past four years to a record high of 43,085 units in mid-May. That activity is helping to stoke the forward earnings of the S&P 500 Railroads into record territory.
Today's Morning Briefing: Great Rotations. (1) Breaking up is hard to do. (2) Rotating or reaching for yield? (3) April was good for dividend yielders. May was not. (4) Two scenarios for the summer: good vs. weak growth. (5) Are record new home prices auguring the end of negative home equity? (6) Railroads benefiting from oil boom. (7) Data support the Great Releveraging more than the Great Rotation. (8) Emerging market bonds are hot, stocks are not. (9) Focus on underweight-rated Telcom Services and Utilities. (10) The Federator. (More for subscribers.)