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.
What’s in Today’s Report:
Futures are slightly higher following a generally quiet night of news.
Economically, the only notable report was the Chinese December Manufacturing PMI, which declined from November but slightly beat estimates at 51.9 vs. (E) 51.5.
On the stimulus front, despite the recent drama of the last few days, the payouts to people in the stimulus bill will not be increased to $2000. However, if Democrats win the Senate, expect this issue to come up again in early 2021.
Today focus will be on Jobless Claims (E: 830K) and markets will want to see continued improvement in that weekly data to imply the economic recovery has not lost meaningful momentum. Outside of that and some year-end positioning, today should be a generally quiet day (although markets will get busy again starting next week).
What’s in Today’s Report:
S&P futures are trading higher while international markets were mixed overnight as investors continue to weigh stimulus hopes against negative pandemic developments.
COVID-19 hospitalizations hit a record in the U.S. yesterday and Colorado reported the first domestic case of the rapidly spreading “U.K. strain,” however news that Britain approved AstraZeneca’s vaccine is helping offset that news.
Today, there are two economic reports to watch: International Trade in Goods (E: -$82.0B) and Pending Home Sales (E: 0.0%) while there are no Fed officials scheduled to speak.
That will leave markets largely focused on Capitol Hill once again as investors look for clarity on the size of individual stimulus checks which has been the most notable driver of equity markets this week.
Still, there exists some probability of a bear market. Factors that could send stocks south include the emergence of a vaccine-resistant, Covid-19 strain, or other bad news on the vaccine front, Tom Essaye, founder of Sevens Report Research, wrote in a Monday research note…Click here to read the full article.
“Investors continue to weigh stimulus hopes against negative pandemic developments,” Tom Essaye, a former Merrill Lynch trader wrote to clients. “Markets have aggressively priced in a lot of positive resolution to these…” Click here to read the full article.
Despite Trump’s implied veto threats, not everyone was so worried. Per CNBC, Tom Essaye, founder of the Sevens Report, wrote “all the bluster neither significantly changed…” Click here to read the full article.
The market rally we’ve seen over the past few weeks has been driven by five factors, Tom Essaye, founder of Sevens Report Research, explained in a note Monday. Stimulus from the Federal Reserve…Click here to read the full article.
“All the bluster neither significantly changed to outlook for stocks, as markets still expected (and ultimately received) stimulus of a minimum…” wrote Tom Essaye, founder of The Sevens Report. Click here to read the full article.
What’s in Today’s Report:
There is a clear risk-on tone to markets this morning with U.S. equity futures tracking global shares higher while the dollar tests recent lows on hopes for more stimulus in thin holiday trading volumes.
Yesterday, the House overwhelmingly passed a bill proposing stimulus checks be increased from $600 to $2,000, which now moves to the Senate with an uncertain fate but there is growing optimism it will pass.
From a catalyst standpoint, today is lining up to be relatively slow as there is just one lesser followed economic report: Case-Shiller House Price Index (E: 0.7%) and there are no Fed speakers.
The Treasury will hold a 7-Yr Note Auction at 1:00 p.m. ET which could impact the yield curve but it is unlikely to be a large enough move to affect equity markets.
That will leave trader focus on Capitol Hill once again as the bill to increase stimulus payments moves to the Senate. While it is relatively unlikely to pass, the Presidential support for the increase is helping drive optimism that it does and such a large increase in individual payments would be a clear positive for risk assets (and dollar negative), especially given this week’s thin attendance and light volumes.