Sevens Report’s Tom Essaye quoted in MarketWatch on October 25, 2018. He wrote in a note to clients that so far, third-quarter earnings have been disappointment and that “peak earnings is a potential reality” that investors are now struggling with. Read the full article here.
Sevens Report’s Tom Essaye quoted in CNBC on October 25, 2018.
“What happened yesterday was the market got way oversold,” said Tom Essaye, founder of The Sevens Report. “Was a decline on earnings warranted? Yes, but not 10 percent.” Read the full article here.
What’s in Today’s Report:
Futures are bouncing from yesterday’s carnage following good earnings reports overnight.
MSFT, F, V, XLNX, TSLA and WHR all posted solid earnings and that is helping stocks to bounce moderately.
Economic data was sparse as German IFO Business Expectations was the only report and it slightly missed estimates.
Today there are actually multiple macro events including an ECB Decision (No Change is expected to rates or QE but we’ll be watching to see if Draghi notes equity market volatility), Durable Goods Orders (E: -1.4%), Jobless Claims (E: 212K) and Pending Home Sales (E: 0.0%) plus there are two Fed speakers: Clarida (12:15 p.m. ET), Mester (7:00 p.m. ET).
But, despite that busy calendar, barring dovish commentary from the ECB or Fed speakers (which isn’t expected) focus will remain on earnings, and this market needs more solid results to break the current negative feedback loop.