“In the immediate term, markets are pricing in more stimulus. From an equity standpoint, that means tech underperformance and cyclical/value outperformance…” Tom Essaye, founder of Sevens Report, said in a note. Click here to read the full article.
What’s in Today’s Report:
Futures are modestly higher after Congress certified the Presidential election results late Wednesday night.
Following the chaos at the Capital yesterday, Congress certified Joe Biden’s election win and President Trump committed to an orderly transition. That will help markets continue to look past the political and civil unrest related to the election, because none of it will ultimately change the outcome and Biden will be inaugurated on January 20th.
Economic data was mixed as EU Retail Sales collapsed (-6.1%) while German Manufacturers Orders beat estimates, but neither number is moving markets.
With the Presidential transition now largely settled, focus will turn back towards economic data and the two key reports today are Jobless Claims (E: 855K) and the ISM Services Index (E: 54.5). Both are equally important, and markets will want to see continued improvement in claims and stability in the services PMI, as that would imply the economic recovery isn’t losing too much momentum in the face of still surging COVID cases. Outside of economic data, we also have several Fed speakers including: Harker (9:00 a.m. ET), Bullard (12:00 p.m. ET), Evans (1:00 p.m. ET) and Daly (3:00 p.m. ET), but none of them should move markets.
Tom Essaye intereviewed with Ben Lichtenstein from TD Ameritrade, discussing the recent oil rally, solar sector, Goldman Sachs and more. Click here to watch the full interview.
What’s in Today’s Report:
Stock futures are modestly higher in cautious trade this morning as investors are largely focused on the Senate runoffs in Georgia today while mostly negative COVID-19 developments continue to weigh on sentiment.
Economically, German data was, on balance, positive o/n, as the unemployment rate held steady at 6.1% as expected while Retail Sales jumped 1.9% vs. (E) -2.0%.
Looking at today’s calendar, there are two domestic economic data points to watch this morning: ISM Manufacturing Index (E: 56.5) and Motor Vehicle Sales (E: 15.7M), and two Fed officials are scheduled to speak in the afternoon: Evans (3:45 p.m. ET) and Williams (3:45 p.m. ET).
But, the markets will remain most interested in the Georgia Senate runoffs today as the threat of a “Blue Wave” outcome would mean potentially higher taxes and more regulation which would largely offset hopes for more, massive stimulus measures.
COVID-19 has also had an impact on markets so far this week as new lockdowns in the U.K. and the discovery of the faster spreading strain of the coronavirus in upstate New York have weighed on sentiment and threaten to become increasing market headwinds in early 2021.
What’s in Today’s Report:
Futures are starting the new year moderately higher despite mixed economic data, as momentum from the end of 2020 is continuing to push stocks higher.
Economic data was mixed as the EU final manufacturing PMI missed estimates (55.2 vs. (E) 55.5) while the UK reading slightly beat estimates (57.5 vs. (E) 57.3).
Politically, some Republicans will challenge the election result, but Biden will be certified the winner and the key political event this week remains the Georgia Senate run-off (and it could provide a potential surprise).
Today focus will be on the December PMI Manufacturing Index (E: 56.5) because it’ll give us more insight into just how much momentum the U.S. economy has lost during this recent COVID spike. There are also three Fed speakers, Evans & Bostic at 10:00 a.m. and Mester at 12:15 p.m., but they shouldn’t move markets.
“Investors continue to weigh stimulus hopes against negative pandemic…” Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter, wrote to clients. Click here to read the full article.
“Investors continue to weigh stimulus hopes against negative pandemic developments. Markets have aggressively priced in a lot of positive…” the note added.” Tom Essaye, “The Sevens Report” newsletter founder, said in a note. Click here to read the full article.
“Investors continue to weigh stimulus hopes against negative pandemic…” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, wrote to clients. Click here to read the full artile.
As Tom Essaye, founder of The Sevens Report said :
“The five pillars of the rally (Federal stimulus, FOMC stimulus, vaccine rollout, divided government and…” Click here to read the full article.
“All the bluster did not change in a significant way to the perspective of the actions, since the markets were still waiting (and finally received) the stimulus…”, points Tom Essaye, founder of The Sevens Report, as collected CNBC. Click here to read the article.
