Why Stocks Dropped Yesterday

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What’s in Today’s Report:

  • Why Stocks Dropped Yesterday

Futures are weaker this morning but off session lows as investors digest underwhelming earnings from AI-sensitive SMCI and AMD ahead of key economic data today.

Economically, the Eurozone’s Final Composite PMI firmed to 52.5 vs. (E) 52.2 in October from 51.2 in September which is helping to ease concerns about a global economic slowdown.

Today, focus will be on economic data early with the ADP Employment Report (E: 28K), Flash Composite PMI (E: 54.8), and ISM Services PMI (E: 51.0) all due to be released by 10:00 a.m. ET.

There are no Fed officials scheduled to speak today but there is a 4-Week Treasury Bill auction at 11:30 a.m. ET that could shed light on investor expectations for a December rate cut.

Earnings season continues as well today with notable companies reporting including: NVO ($0.77), MCD ($3.35), HUM ($2.91), HOOD ($0.51), APP ($2.37), IONQ ($-0.44), and QCOM ($2.33).

 

New Sevens Report Special Report Coming Next Wednesday: How Bad Is the U.S. Debt Situation?

We’re continuing our Sevens Report Special Report series, and in the latest release, we’ll be taking an in-depth look at one of the most important, and popular, topics among investors: The U.S. debt situation.

We’ve all heard the warnings: The U.S. debt situation is unsustainable and a long-term threat to the markets and the economy. Well, your clients and prospects have heard these warnings too, so we wanted to produce an in-depth special report that takes an independent, fact-based look at the U.S. debt situation.

In this Sevens Report Special Report we: 1) Take a comprehensive look at the U.S. $37.4 trillion debt burden, 2) Explore historical comparisons to rising and declining empires, 3) Examine the implications of the looming $9.2 trillion “maturity wall” and 4) Evaluate threats to dollar dominance.

Like previous Sevens Report Special Reports, this report will both be branded as Sevens Report Research and as a “white labeled” version, allowing you to brand this robust and in-depth report as your own using your firm’s logo and other marketing materials. Both versions are included with a purchase.

Bottom line, the U.S. debt situation will be a major long-term influence on markets and investor portfolios, and the level of interest in U.S. debt, especially among more sophisticated investors, is high.

This special report can not only help explain the situation and put it in proper context, but also differentiate you from the competition by showing you’re focused on both the near-term and long-term risks to clients’ wealth. Please email info@sevensreport.com to learn more or to pre-order this special report.

 

Tesla Investors Should ‘Write the Check’ for Musk’s Pay Package: Essaye Interviewed on Yahoo Finance

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Tom Essaye says shareholders should back Elon Musk’s $1 trillion compensation plan and let him “do his thing.”

Tesla investors should ‘write the check’ for Musk’s pay package

Tesla (TSLA) shareholders will be voting on Tesla CEO Elon Musk’s $1 trillion pay package ahead of the company’s annual shareholder meeting on Thursday, Nov. 6. Sevens Report Research founder Tom Essaye tells Yahoo Finance that shareholders should “write the check” and let Musk “do his thing.”

Also, click here to view the full interview on Yahoo Finance published on November 3rd, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye warns that most S&P 500 stocks are lagging as the index hits new highs.

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S&P 500’s Gains Look Deceptive Despite 16% Yearly Rally

SPX: Two Concerning Trends to Watch as Stocks Hit New Highs

The S&P 500 slipped 0.9% last Thursday, a modest pullback given its 16.2% year-to-date gain. But according to Tom Essaye, president of Sevens Report Research, that strength is “more than a little bit deceiving.”

Of the 503 companies in the index, only 144 — or 28.6% — are outperforming, while 227 are down for the year. Essaye noted that this imbalance raises questions about how sustainable the rally really is.

He also highlighted that the NYSE Advance-Decline Line fell to a 12-week low last week, even as the S&P 500 posted 14 record closes since September — a signal that far fewer stocks are moving higher during the rally.

Essaye concluded that while concentrated leadership is normal during long market advances, current extremes suggest risks are building beneath the surface.

Also, click here to view the full article on Moneyshow.com published on November 3rd, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

The Companies Financing AI: Tom Essaye Interviewed on Yahoo Finance

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Tom Essaye joins Yahoo Finance to discuss Big Tech names financing artificial intelligence (AI) buildouts with debt

Google, Meta finance AI with debt: Why it’s ‘bullish’ for now

Sevens Report Research founder Tom Essaye, Yahoo Finance Senior Reporter Ines Ferré, and Yahoo Finance Senior Reporter Brooke DiPalma join Opening Bid host Brian Sozzi to discuss the Big Tech names financing artificial intelligence (AI) buildouts with debt.

Also, click here to view the full interview on Yahoo Finance published on November 3rd, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Putting the Tech Sector Dominance in Real Numbers

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What’s in Today’s Report:

  • Putting the Tech Sector Dominance in Real Numbers
  • ISM Manufacturing PMI Takeaways

Markets are risk-off this morning with stock futures down ~1% while bonds are bid thanks to the combination of cautious comments from banking executives at a global conference overnight and disappointing PLTR earnings (shares down 7%+ in premarket trade).

Looking into today’s session there are a handful of economic releases to watch today including: International Trade in Goods (E: $-64.1B), Factory Orders (E: 0.2%), and JOLTS (E: 7.3 million) assuming none are delayed due to the government shutdown.

There is one Fed speaker on the calendar as well as Bowman began speaking at 6:35 a.m. ET at the Santander International Banking Conference in Spain.

Finally, we will get earnings and guidance figures from more important multi-national companies today, including UBER ($0.67), SPOT ($1.87), AMD ($0.97), SMCI ($0.19), AXON ($0.07), AMGN ($5.00), and PFE ($0.66), and based on the risk-off money flows related to the soft PLTR release that is weighing on equities today, investors will want to see better numbers, especially out of tech-focused firms.

 

Sevens Report Warns Weak Market Breadth Threatens S&P 500 Rally

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Tom Essaye cautions that rising concentration and falling participation raise risks of another sharp pullback.

Pay attention to these ’concerning’ market developments

U.S. equities fell Thursday as investors shifted focus from the Trump-Xi summit to surging bond yields and lackluster mega-cap tech earnings. The S&P 500 dropped nearly 1%, closing at weekly lows. While still up 16.25% year-to-date, Tom Essaye of Sevens Report Research said the rally is “deceiving,” with market breadth weakening beneath the surface.

Essaye noted that the top 10 companies now make up 40.5% of the S&P 500’s value — surpassing the tech bubble peak — with Nvidia alone at 8% after surpassing a $5 trillion market cap. Only 28.6% of S&P components are outperforming the index, and just 53% remain above their 200-day moving average. The NYSE Advance-Decline Line has also hit a 12-week low.

He warned that without a rebound in market breadth, risks of another “air pocket-style” drop or April-like correction are rising. “A broad-based rebound is needed to confirm that the bull market remains alive and well,” Essaye wrote.

Also, click here to view the full article published in Investing.com on November 1st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report: Oil Market Faces Record Surplus Despite U.S.-China Trade Truce

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Tyler Richey warns crude prices could fall to mid-$30s as 2026 supply glut looms.

An oil supply glut could sink prices to $35 a barrel next year. Why the U.S.-China trade truce won’t change that.

While President Trump’s trade truce with China offered a brief dose of optimism, Sevens Report Research warns it won’t offset an impending record oil surplus. Co-editor Tyler Richey told MarketWatch that the deal “does not change the current physical market math,” which still points to a 2026 supply glut averaging 4 million barrels per day, according to World Bank and IEA data. Richey cautioned that WTI crude could drop to the mid-$30s if forecasts hold, echoing the 2010s OPEC price war. Despite the tariff resolution, oil prices barely moved, as analysts see little change in supply-demand dynamics. Richey said only a major geopolitical shock or a global growth surge could shift the bearish outlook, noting fundamentals “remain tilted in favor of the oil bears.”

Also, click here to view the full article published in MarketWatch on October 30th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Updated Market Outlook (Post Earnings, Trade Truce and Fed Decision)

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What’s in Today’s Report:

  • Updated Market Outlook (Post Earnings, Trade Truce and Fed Decision)
  • Weekly Market Preview:  Will the Shutdown End This Week? (If Not, Possible Market Headwind)
  • Weekly Economic Cheat Sheet:  ISM PMIs and ADP Are Important This Week

Futures are solidly higher mostly on momentum following a generally quiet weekend of news.

There was no disruptive news over the weekend so investors focused on the results of last week:  1) Continued AI Enthusiasm, 2) Trade truce and 3) Fed rate cut/end of QT.

Economically, EU and UK manufacturing PMIs met expectations (50 and 49.7 respectively).

Today we do get some potentially important economic data via the ISM Manufacturing PMI (E: 49.4) and markets will want to see stability (so not falling too far from 50).  On the Fed front, there are two speakers today, Daly (12:00 p.m. ET) and Cook (2:00 p.m. ET) and the more dovish their commentary, the better for markets (given recent uncertainty around a December rate cut).

Finally, on the earnings front, ON ($0.59), PLTR ($0.12) and two moderately important AI linked tech companies, so markets will want to see solid results from both.

 

Sevens Report Warns of Rising Risks as S&P 500 Breadth Weakens

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Tom Essaye cautions that half of S&P 500 stocks are down YTD despite record-level index.

Why risks of a stock-market drop are rising amid extreme concentration in the S&P 500, Sevens Report warns

Nearly half of S&P 500 stocks are posting year-to-date losses even as the index trades near record highs, according to Sevens Report Research. Founder Tom Essaye warned this divergence signals growing market fragility. “That is not so healthy,” he said, noting the risk of another sharp “air pocket” drop or a broader April-style pullback is rising daily. The top 10 S&P 500 companies now make up 40.5% of the index—surpassing the concentration seen during the 2000 tech bubble. Essaye also flagged weakening market breadth, with the NYSE Advance-Decline Line hitting a 12-week low and only 53% of S&P 500 stocks trading above their 200-day moving averages, the lowest since June.

Also, click here to view the full article published in MarketWatch on October 31st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Fed Caution, AI Bubble Warnings, and Trade Tensions Shape Market Mood

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Tom Essaye warns of rising correction risks as the Fed tempers rate-cut expectations.

Navigating the Aftermath: Market Outlook Post-Declines Amidst Trade Truce and Rate Uncertainty

September 2025 marked the start of the Federal Reserve’s rate-cutting cycle with a 25-basis-point reduction, but optimism quickly faded. In early October, warnings of a potential “AI bubble” intensified, with Sevens Report’s Tom Essaye cautioning that a burst could drag the S&P 500 down 10%–20%. JPMorgan CEO Jamie Dimon also warned of a possible sharp correction.

By October 29, the Fed cut rates again to a 3.75–4.00% range, but Chair Jerome Powell’s statement that a December cut was “not a foregone conclusion” cooled expectations. The cautious tone, combined with ongoing U.S.-China trade tensions and Trump’s tariff threats, weighed on sentiment.

Tech giants like Nvidia, AMD, Amazon, Meta, Microsoft, and Alphabet remain at the center of investor focus as their valuations drive market direction. Meanwhile, analysts and policymakers alike are watching whether Fed policy, AI enthusiasm, and trade diplomacy can keep markets stable through year-end.

Also, click here to view the full article on WRAL.com published on October 30th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.