Market Multiple Table: April Update

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What’s in Today’s Report:

  • Market Multiple Table: April Update

Futures are modestly lower with European markets while oil rallies and global bond yields move higher amid simmering geopolitical tensions and lingering inflation fears.

Economically, Final Composite PMI data was mostly better than expected in Europe overnight but price measures continued to rise, suggesting inflation has still not peaked.

Today, we will get two economic reports starting with International Trade (E: -$88.8B), but the ISM Services Index (E: 58.5) will be the more important release to watch shortly after the opening bell as a continued rise in the price measures could further stoke inflation/stagflation fears.

Additionally, there are multiple Fed speakers today: Kashkari (10:00 a.m. ET), Brainard (11:05 a.m. ET), Daly (12:30 p.m. ET), and Williams (2:00 p.m. ET). And if their tone is more hawkish than current market expectations, that could send yields to new highs and pressure high growth tech names which would drag the broad market lower.

Tom Essaye Quoted in CNBC on March 31, 2022

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Dow drops to snap four-day winning streak, Nasdaq falls more than 1%

Above 4,600 in the S&P 500, markets have now traded through most fundamental bounds of valuation, and for this rally to continue, we’ll need to see real, actual positive events (not just events that aren’t as bad as feared)…Tom Essaye of The Sevens Report said in a note to clients Wednesday. Click here to read the full article.

Tom Essaye Quoted in Big News Network on March 31, 2022

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Above 4,600 in the S&P 500, markets have now traded through most fundamental bounds of valuation, and for this rally to continue, we’ll need to see real actual positive events…Tom Essaye of the Sevens Report. Click here to read the full article.

 

Tom Essaye Quoted in Forbes on April 1, 2022

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This Recession Indicator Is Flashing Warning Signs As Fed, War And Oil Threaten Economic Recovery

Instead, it’s a signal that the bull market’s time is now limited… said market analyst Tom Essaye of the Sevens Report. Click here to read the full article.

Staying Focused on What Really Causes Bear Markets

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What’s in Today’s Report:

  • Staying Focused on What Really Causes Bear Markets
  • Weekly Market Preview:  Can Oil Further Stabilize?
  • Weekly Economic Cheat Sheet:  Fed Minutes (Wednesday) Are the Key Report

Futures are slightly higher following a generally quiet weekend of news.

Geopolitically,  there are calls for more sanctions on Russia as the international community is now accusing Russia of war crimes following the discovery of a mass grave outside of Kiev. Oil, which is the key proxy for additional sanctions, is only slightly higher, however, implying the market isn’t expecting significant additional sanctions in the near term.

Economic data was sparse as the only notable report was German exports which rose solidly (up 6.4%).

Today there are no notable economic reports and no Fed speakers, so the focus will be on geopolitics, and again any hints of progress towards a ceasefire will help extend the recent rally.

Updated Jobs Report Preview

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What’s in Today’s Report:

  • Jobs Report Preview (Slightly Updated)

Futures are modestly higher ahead of today’s jobs report as markets bounce back from Thursday’s late-day selloff.

Markets dropped into the close yesterday but that was driven by quarter-end re-positioning and rebalancing, not be any news, so it’s being partially unwound this morning.

Economic data underwhelmed as the EU and UK March Manufacturing PMIs both slightly missed estimates.

Today’s focus will be on the Jobs Report and expectations are as follows: Job Adds:  490K, UE Rate:  3.7%, Wages: 0.4% m/m, 5.5% y/y).  The estimates for the jobs report have crept higher the past two days so we slightly revised our “Too Hot” and “Just Right” ranges for today’s jobs report, and they are included inside today’s Sevens Report.

Outside of the jobs report, we also get the ISM Manufacturing PMI (E: 58.6), and markets will want to see stability in the data above all else (so no big miss vs. expectations).  We also get one Fed speaker, Evans at 9:05 a.m. ET, but he shouldn’t move markets.

For Sevens Report Quarterly Letter subscribers, the Q1 ’22 Quarterly Letter and compliance back up will be delivered via email around mid-day today.  If you are not a subscriber and are interested in the letter, please click this link to learn more.

Finally, today is April Fools Day, so be extra wary of any preposterous declarations from your family, friends, or colleagues.