A Unique ETF Focused on Managing Tax Liabilities

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A Unique ETF Focused on Managing Tax Liabilities : Start a free trial of The Sevens Report.

What’s in Today’s Report:

  • A Unique ETF Focused on Managing Tax Liabilities
  • JOLTS Data Takeaways – Another Goldilocks Report

Futures are higher with tech shares leading thanks to solid earnings reports after the close yesterday as investors look past political turmoil overseas.

Politically, lawmakers in South Korea moved to impeach President Yoon for implementing martial law yesterday while the French government faces a no-confidence vote today. Neither situation is a material negative for markets but both are weighing on sentiment.

In corporate news, CRM and OKTA (a newer cloud software focused company) both posted solid earnings after the close yesterday which is bolstering the broader tech sector in premarket trade today.

Today, we will get two more important economic reports: The ADP Report (E: 165K) and the ISM Services PMI (E: 55.5). Factory Orders (E: 0.4%) will also be released but is less likely to move markets than the first two data points.

The Fed’s Musalem is scheduled to speak at 8:45 a.m. ET, however the market’s main focus today will be Powell’s commentary (1:45 p.m. ET) as he could shed light on December rate cut plans or the policy rate path in 2025. Any hawkish surprise from the Fed Chair could spur volatility today.

Finally there is one notable earning release today from discount retailer DLTR ($1.07) that could offer insight into consumer spending habits.

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Sentiment Divergence Between Advisors and Investors

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Sentiment Divergence Between Advisors and Investors: Start a free trial of The Sevens Report.

What’s in Today’s Report:

  • Sentiment: Divergence Appearing Between Investors and Advisors
  • ISM Manufacturing PMI Takeaways

Futures are little changed amid escalating U.S.-China trade tensions and ongoing political turmoil in Europe.

Overnight, China announced an export ban of specific rare minerals with military applications to the U.S. in the latest escalation of trade tensions between the two countries.

EU shares edged higher ahead of the French government’s “vote of no confidence” (tomorrow) linked to ongoing budget turmoil.

Looking into today’s session, there are two economic reports to watch: JOLTS (E: 7.49 million) and Motor Vehicle Sales (E: 16.0 million). Investors will want to see more “Goldilocks” data to support post-election growth optimism.

Additionally, there are two Fed speakers to watch: Kugler (12:35 p.m. ET) and Goolsbee (1:30 p.m. ET and 3:45 p.m. ET), and as long as they do not offer any hawkish surprises, stocks should be able to extend gains to new record highs today.

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One Last Hurdle for the Santa Rally

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What’s in Today’s Report:

  • One Last Hurdle for the Santa Rally
  • Weekly Market Preview: Can Goldilocks Data Offset Political Volatility?
  • Weekly Economic Cheat Sheet: The Last Big Week of 2024

Futures are slightly lower on political volatility as Trump issued more tariff threats and made another unorthodox cabinet appointment while President Biden pardoned his son Hunter.

Trump threatened 100% tariffs on BRICs countries (Brazil, Russia, India, China) if they abandon the U.S. dollar. In addition, Trump made another unorthodox cabinet pick with Kash Patel as FBI Director.

Finally, President Biden reversed course and gave an unconditional pardon to his son Hunter, sparking bi-partisan criticism.

Today focus will turn from politics to actual economic data and the key report today is the ISM Manufacturing PMI (E: 47.6).  As has been the case, an in-line to slightly soft number would be the best case for stocks as it wouldn’t signal any further deterioration in the manufacturing sector and, at the same time, keep a Fed rate cut more likely than not.

We also have two Fed speakers today, Waller (3:15 p.m. ET) and Williams (4:30 p.m. ET) and any commentary that makes a December rate cut more likely will be a positive for markets.

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