“While the early use authorization for plasma is clearly a positive, from a market standpoint a vaccine remains a true…” says Tom Essaye, editor of the Sevens Report. Click here to read the full article.
”Futures are moderately higher on Covid-19 treatment optimism following the FDA’s authorization of plasma treatment…” wrote The Sevens Report’s Tom Essaye before the open. Click here to read the full article.
Tom Essaye interviewed with Ben Lichtenstein from TD Ameritrade Network to discuss consumer-oriented earnings, treasury, stocks, and more…Click here to watch the full interview.
What’s in Today’s Report:
Stock futures are rallying this morning suggesting that the S&P 500 will open at a fresh record high today while global shares rose overnight on easing geopolitical tensions.
Late yesterday, high-level officials from the U.S. and China including Secretary Mnuchin and Vice Premier Liu He held a “constructive” virtual meeting during which both sides reiterated commitment to the Phase-One trade deal.
Economic data largely met expectations overnight and did not materially affect markets with a focus on improving relations between the U.S. and China.
Looking into today’s session, the focus will remain on the apparent progress on trade between the U.S. and China however there are a few additional catalysts to watch.
Economically, we will get three reports on the housing market: Case-Shiller House Price Index (E: 0.1%), FHFA House Price Index (E: 0.3%), and New Home Sales (E: 774K) but Consumer Confidence (E: 93.0) will be the most important release to watch (it hits shortly after the bell at 10 a.m. ET).
There is also one Fed speaker late in the day: Daly (3:25 p.m. ET). Beyond that, the market will remain sensitive to any news regarding the Congressional stalemate over the stimulus bill and any new progress will be well received by markets.
What’s in Today’s Report:
Futures are moderately higher on COVID-19 treatment optimism following the FDA’s authorization of plasma treatment for severely ill COVID patients.
President Trump announced on Sunday that the FDA has granted “Early Use Authorization” (EUA) for use of plasma from recovered COVID patients on severely ill patients. The EUA will increase the availability of this treatment.
While the EUA for plasma is clearly a positive, from a market standpoint a vaccine remains a true “silver bullet” that could super charge a rally. So, while positive, the plasma news is not a bullish gamechanger (although it does add to the feeling of FOMO (fear of mission out)).
Outside of the plasma news it was a quiet weekend, as there was no economic data nor any progress on stimulus.
Today will be a generally quiet day as there are no economic reports and no notable Fed speakers (the Jackson Hole conference is later in the week), so focus will remain on COVID treatment optimism.
What’s in Today’s Report:
Futures are marginally lower mostly on continued momentum from Wednesday’s late-day market decline.
It was a quiet night of news and “Fed disappointment” is the most used excuse for the decline in stocks, although the FOMC Minutes largely met expectations (more on that in the report).
Stimulus chatter about a “skinny” stimulus bill (worth $500/bln) continues to grow. If that becomes reality, it will be a big disappointment (remember markets have priced in a $1.5T bill).
Today the key reports will be Jobless Claims (E: 963K) and Philadelphia Fed Survey (E: 21.5), and the point here is clear: Markets will want to see continued improvement in the data in August, reflecting the fact that the loss of stimulus isn’t causing the economic recovery to slow or pause. Finally, there’s one Fed speaker today, Daly (1:00 p.m. ET), but he shouldn’t move markets.
What’s in Today’s Report:
Stock futures are trading modestly higher this morning as investors digest yesterday’s new record highs in the S&P after a mostly quiet night of news.
Traders remain optimistic for a stimulus deal however there were no positive developments overnight while economic data was sparse and did not move markets.
Looking into today’s session, there are no economic reports to watch and the calendar is fairly quiet in the morning.
Potential market catalysts do pick up in the afternoon as the Treasury will hold a 20-Yr Bond auction at 1:00 p.m. ET which has the potential to move rates, the yield curve and ultimately impact equity markets.
Later in the afternoon, the minutes from the most recent Fed meeting will be released at 2:00 p.m. ET before Richmond Fed President Barkin speaks at 3:00 p.m. ET.
The market’s primary focus right now however remains the stimulus package and with rising chatter about potential concessions in the front half of the week, the prospects for a deal have improved. And any additional positive news regarding a stimulus deal should help the market continue to grind to new record levels.
“There are clearly a lot of similarities between the market dynamics in the late 90s and current market dynamics. And, for those of us that…” said Tom Essaye, editor of The Sevens Report investing newsletter. Click here to read the full article.
Tom Essaye, Sevens Report Research Founder, joins Yahoo Finance’s The First Trade with Alexis Christoforous and Brian Sozzi to discuss what’s moving the markets on Monday morning. Click here to watch the full interview.
What’s in Today’s Report:
S&P 500 futures are slightly higher, trading within 10 points of their record high this morning after a mostly quiet night of news.
U.S.-China tensions remain elevated following the Commerce Department’s new tighter restrictions on Chinese telecom giant, Huawei Technologies, but for now the impact on the broad markets has been limited.
There were no notable economic reports overnight and no material developments regarding the next coronavirus relief bill.
Today is lining up to be another relatively slow day in the markets as there is only one economic report: Housing Starts (E: 1.240M) and there are no Fed officials scheduled to speak. The quiet calendar will leave investors largely focused on the status of the stimulus bill negotiations in Congress which remain in a stalemate.