Then value stocks started to look alive in the later part of 2020. Using Vanguard Value ETF (VTV) for value and Vanguard Growth ETF (VUG) for growth, Tom Essaye, editor of The Sevens Report newsletter notes from Aug. 31 to Nov. 30, value outperformed growth, 6.4% to 2.1%. But…Click here to read the full article.
“Gold finally found its footing as a steep drop in the dollar and firming inflation outlook…,” resulting in a rally on Tuesday, said analysts in the latest newsletter for Sevens Report Research. Click here to read the full article.
“We continue to think the rotation to value should be focused on creating a more balanced value/growth portfolio, and not…” said Tom Essaye, editor of The Sevens Report investing newsletter, in a report Tuesday. Click here to read the full article.
What’s in Today’s Report:
Futures are marginally higher ahead of the jobs report on more positive stimulus commentary overnight.
More Dems and Republicans voiced support for the $900-billion-ish stimulus bill overnight, and some, or all, of the bill could be passed by next Friday (the budget deadline).
Economic data was again solid overnight as German Manufacturers’ Orders beat estimates (2.9% vs. (E) 1.5%).
Today focus will be on any more stimulus headlines and the Employment Situation report.
Expectations for the jobs report are: Job Adds: 500K and U.E. Rate: 6.8%. Anything above 250kish jobs adds should be “fine” for the market, especially given the stimulus momentum and it’d likely take a negative number to hit stocks.
Finally, there are several Fed speakers today including: Williams (8:05 a.m. ET), Evans (9:00 a.m. ET) and Bowman (10:00 a.m. ET), but none of them should materially move markets.
What’s in Today’s Report:
Futures are little changed as overnight markets digested the week’s rally amidst better than expected economic data and more stimulus chatter.
Economic data was solid overnight as Chinese (57.8 vs. (E) 56.8), EU (41.7 vs. (E) 41.3) and British (47.6 vs. (E) 45.8) service sector PMIs all best estimates.
On stimulus, Democrat leader Pelosi and Schumer said the current $990 bln stimulus bill was a good “starting point.”
Today focus will be on economic data, especially Jobless Claims (E: 770K) because if they rise close to or above 800k, that will be more evidence the recovery is losing momentum. We also get the ISM Services Index (E: 56.1). Finally, stimulus chatter continues to heat up, and markets will embrace any further hints at negotiations (although a near-term deal still is very unlikely).
“We continue to think the rotation to value should be focused on creating a more balanced value/growth portfolio…” said Tom Essaye, editor of The Sevens Report investing newsletter, in a report Tuesday. Click here to read the full article.
Tom Essaye interviewed with Ben Lichtenstein from TD Ameritrade Network, discussing EV companies, TSLA, NIO, NKLA, semiconductor industries & more. Click here to watch the full interview.
What’s in Today’s Report:
Futures are modestly lower this morning as yesterday’s record highs are digested while more positive vaccine news is being offset by yesterday’s mixed stimulus headlines.
News broke overnight that the U.K. approved Pfizer’s COVID-19 vaccine for emergency use as early as next week, although the market reaction was limited as vaccine hopes are already largely priced in with stocks at or near records.
Economic data was mostly upbeat overnight with German Retail Sales and Eurozone Unemployment both beating estimates however the stimulus stalemate continues to weigh on the global growth outlook right now.
Today, there are two economic reports to watch as the ADP Employment Report (E: 420K) kicks off jobs week while Motor Vehicle Sales (E: 16.1M) will be released later in the morning.
There are multiple Fed speakers today including: Quarles (9:00 a.m. ET), Williams (9:00 a.m. ET & 1:00 p.m. ET), and Powell (10:00 a.m. ET) with the bulk of the focus remaining on the Fed chair’s second day of testimony before Congress.
Bottom line, investors are focused on stimulus right now, underscored by the fact that there was not a more pronounced reaction to the Pfizer vaccine approval news overnight, so until we gain more clarity on the size and scope of the next coronavirus aid package, it may be difficult for stocks to continue to grind to new record highs in the very near term.
Sevens Research Report Founder and President Tom Essaye interviewed with BNN Bloomberg, says the clarity in the Biden administration and on vaccine development that took place in November is giving investors…Click here to watch the full interview.
What’s in Today’s Report:
Equity futures are broadly higher as this week’s positive vaccine news and strong PMI data spur optimism for continued growth as we start the final month of the year.
November Manufacturing PMIs across Asia and Europe largely topped estimates overnight suggesting economic growth is continuing to firm despite the lack of stimulus.
Looking into today’s session, traders will look for a continued trend of better than expected economic data in the two notable reports due to be released: ISM Manufacturing Index (E: 57.5) and Construction Spending (E: 0.8%) as underwhelming data will rekindle fears that the recovery is losing steam, especially in the U.S. where coronavirus statistics are concerningly elevated.
There are also several Fed speakers today: Powell (10:00 a.m. ET), Brainard (11:00 a.m. ET), Daly (1:15 p.m. ET), and Evans (3:00 p.m. ET) however the focus will clearly be on Chair Powell’s Congressional testimony, alongside Treasury Secretary Mnuchin, regarding the CARES Act as investors assess the outlook for more stimulus in the months ahead.