Vaccine Mandates vs. Mask Mandates

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What’s in Today’s Report:

  • Vaccine Mandates vs. Mask Mandates
  • Durable Goods Data Takeaways

U.S. equity futures are little changed this morning as Chinese markets began to stabilize amid easing concerns about increased regulation while focus turns to the Fed.

In company specific news, MSFT and GOOGL are trading higher after reporting record earnings while AAPL is down on disappointing guidance.

There are no notable economic reports today which will leave markets focused on the FOMC Decision (2:00 p.m. ET) and Fed Chair Powell’s Press Conference (2:30 p.m. ET). But as long as there is not a materially hawkish shift in tone, the market reaction should be relatively muted.

Additionally, there are some major companies releasing Q2 earnings results today including: PFE ($0.98), BA (-$0.65), MCD ($2.12), GD ($2.52) before the open, and FB ($3.03), PYPL ($1.14), and QCOM ($1.67) after the close.

FOMC Preview

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What’s in Today’s Report:

  • FOMC Preview
  • Positive COVID News?

Futures are modestly lower again for the same reasons as Monday:  Global equity pressure following another sharp decline in Chinese shares (Hang Seng was down 4% again).

There was no new regulatory news from China overnight but fears remain and sellers remained aggressive.

There were no notable economic reports overnight.

Today there are three notable economic reports, Durable Goods (E: 2.1%), Cash-Shiller Home Price Index (E: 1.5%) and U.S. Consumer Confidence (E: 124.9) but unless there’s a major surprise from one or more, I don’t expect them to move markets and with the Fed looming tomorrow and key earnings after the close, today shouldn’t be too volatile.

On the earnings front, today is probably the biggest single day of earnings of the season, and key reports (mostly after the close) include:  AAPL ($1.00), AMD ($0.54), MSFT ($1.90), GOOGL ($19.89), UPS ($ 2.75), and MMM ($2.25).

All About Demand

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What’s in Today’s Report:

  • All About Demand
  • Weekly Market Preview:  The Fed and Inflation
  • Weekly Economic Cheat Sheet:  Fed Meeting, Core PCE Price Index and GDP.

Futures are marginally lower as increased concerns about regulation in China caused a sharp drop in Chinese shares, and that’s weighing on global equities.

The Hang Seng dropped more than 4% on Monday on fears of increased regulation from the Chinese government, following reports China was going to make the education business sector “not for profit.”

COVID headlines remained generally unchanged over the weekend as cases continued to rise in the U.S, although governments continue to resist restrictions and lockdowns.

Today there’s only one notable economic report, New Home Sales (E: 800k), and that shouldn’t move markets.  On the earnings front, the key report today comes after the close (TSLA $0.96), so focus will be on COVID headlines and if there are any reports of increased restrictions or lockdowns here in the U.S., that will hit stocks.

Tom Essaye Quoted in Coinspeaker on July 22, 2021

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Wall Street Keeps Up with Upward Momentum for Second Consecutive Day, Dow Jones Up 280 Points

In a report on Wednesday, Thomas Essaye of Sevens Report Research said “Tuesday was a textbook oversold bounce following Monday’s…” Click here to read the full article.

Tom Essaye Quoted in Report Door on July 20, 2021

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Stock market is at risk of a correction if this happens amid the spread of the Delta variant

This market is vulnerable to a bigger pullback or correction if there’s a new negative…warns Sevens Report Research founder Tom Essaye in a research note to clients. Click here to read the full article.

Tom Essaye Quoted in Barron’s on July 21, 2021

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Chipotle Rises, Netflix Falls, and the Dow Continues Rebounding

Futures are modestly higher thanks to continued momentum from Tuesday’s…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

Tom Essaye Quoted in Barron’s on July 21, 2021

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Stocks Close Up. Investors Focus on Earnings and Covid.

Companies like Chipotle and United Airlines said the increase in COVID cases was not…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

 

Tom Essaye Interviewed by BNN Bloomberg on July 22, 2021

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I’d buy COVID dips in this market: Sevens Report Research’s Tom Essaye

Tom Essaye, founder and president of Sevens Report Research, joins BNN Bloomberg with his market outlook. He says he’d buy… Click here to watch the full interview.

Tom Essaye Quoted in Barron’s on July 22, 2021

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CSX Rises, Las Vegas Sands Falls, and Stocks Are Wavering

Futures are marginally higher following another night of…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

ECB Decision Takeaways (Not Dovish Enough, Again)

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What’s in Today’s Report:

  • ECB Decision Takeaways (No Dovish Enough, Again)
  • Updated Oil Outlook

Futures are moderately higher thanks to solid economic data and better than expected earnings.

The EU flash PMI was stronger than expected at 60.6 vs. (E) 60.0, while good UK Retail Sales (0.5% vs. (E) 0.4%) helped offset the soft UK flash PMI (57.7 vs. (E) 61.9).  But, on an absolute basis the numbers were good, and importantly the economic recovery is still on going and has good momentum.

Earnings were good in aggregate overnight with strong reports from TWTR and SNAP, among others.

Today the key number will be the July Flash Composite PMI (E: 63.4) and markets will want “Goldlocks” data.  Specifically, that means strong activity that implies the rise in COVID cases isn’t hurting the recovery, while at the same time, activity that isn’t so strong it makes the Fed think about tapering sooner than expected, or more forcefully.

Earnings season also continues today, and four reports we’ll be watching include: NEE ($0.67), AXP ($1.64), SLB ($0.25), and HON ($1.94).