“Stocks are grinding relentlessly higher into year-end on continued momentum from the positive resolution of four key events: A phase one trade deal…” says Sevens Report founder Tom Essaye. Click here to read the full article.
Shares of the beleaguered aviation company make up 20% of the iShares U.S. Aerospace & Defense ETF ITA, -0.11%, pointed out Tom Essaye, president of the Sevens Report, in a research note out Tuesday. The exchange-traded fund has gained 31% in the year to date, even though Boeing shares are up less than 5%.
And Essaye thinks there’s room for Boeing to gain altitude. “I’m not a Boeing analyst,” he cautions, but lays out a strong case for upside. The decision to halt production on the 737 may have been negative…Click here to read the full article.
“Stocks are grinding relentlessly higher into year-end on continued momentum from the positive resolution of four key events: A phase one trade deal…” Tom Essaye, the founder of Sevens Report, said in a note. Click here to read the full article.
What’s in Today’s Report:
Futures are marginally higher following a good report on retail sales by Mastercard. Trading is quiet, however, as most of Europe, Hong Kong and Australia are closed for Boxing Day.
Mastercard (MA) posted preliminary estimates for 2019 holiday spending and they appear stronger than expectations, and that’s helping send futures higher.
There was no “Christmas surprise” from North Korea although a missile launch is still expected in the coming days (but even if it happens, it shouldn’t impact markets much).
The only notable number out today is Jobless Claims (E: 223K), and we’ll want to see the continued unwind of the Thanksgiving spike higher in claims that occurred two weeks ago.
“Stocks are grinding relentlessly higher into year-end on continued momentum from the positive resolution of four key events: A phase one trade deal, a dovish Fed…” Tom Essaye, founder of Sevens Report, said in a note on Monday.
What’s in Today’s Report:
U.S. stock futures are marginally higher this morning while international markets were little changed overnight as news wires were very quiet and attendance is notably thin ahead of the Christmas holiday.
There were no economic reports overnight and no market-moving headlines have crossed since yesterday’s close.
Looking into today’s holiday-shortened session (the NYSE will close at 1:00 p.m. ET), there are no notable economic releases and no Fed officials are scheduled to speak.
The only potential market catalyst on the calendar is a 5-Yr Note Auction by the Treasury at 10:00 a.m. ET. Any significant moves in the belly of the yield curve could affect stocks today as computer trading will dominate the price action due to the low attendance ahead of Christmas.
What’s in Today’s Report:
Futures are slightly higher thanks mostly to momentum from last week’s rally as the weekend was a quiet one.
On trade, the WSJ reported China has reduced additional tariffs on some goods, but this is all part of the existing phase one deal and it’s not an incremental positive.
Economic data was sparse overnight, and none of the numbers are moving markets.
Today we get the most important economic report of the week, New Orders for Non-Defense Capital Goods ex-Aircraft (E: 0.0%), which is a proxy for business spending – something that should start to rise now that we have a phase one trade deal. As has been the case, the stronger this number, the better for stocks.
Beyond today, this week would have been a quiet one even if there wasn’t a holiday, but it should be even more so as the economic calendar is very sparse. Geo-politically, North Korea could launch a missile or test a nuclear bomb this week, but while it might cause temporary volatility, that won’t derail this rally. So, as long as there are no negative trade surprises, the path of least resistance for stocks remains higher into year-end.
What’s in Today’s Report:
Futures are little changed this morning following another quiet night of news as markets digest the Q4 gains.
On trade, the House of Representatives passed the USMCA, as was widely expected and already priced in.
Economic data was largely in-line as Japanese CPI (0.5%) and German GfK Consumer Climate (9.7 vs. (E) 9.6) both met expectations.
Today focus will remain on economic data, and we have several more notable reports including, in order of importance: Core PCE Price Index (E: 0.2%), Consumer Sentiment (E: 99.2), Final Q3 ‘19 GDP (E: 2.1%). The Core PCE Price Index, which is the Fed’s preferred measure of inflation, needs to continue to show subdued inflation pressures, as a sudden surge in inflation is the only thing that could get the Fed to become more hawkish. Finally, today is a quadruple witching options expiration so don’t be shocked if there’s elevated volumes and some volatility into the close.
What’s in Today’s Report:
Futures are flat following a very quiet night of news.
Economic data was mixed as Australian jobs adds beat expectations (39k vs. (E) 18k) while British retail sales badly missed estimates in November (-0.6% vs. (E) 0.5%. But, neither number is moving markets.
On the earnings front, Micron (MU) had positive commentary and the stock rallied 5% after hours, and that’s helping broader market sentiment this morning (it’s the single biggest reason stocks are flat).
Today’s focus will remain on economic data, and there are three notable reports including (in order of importance): Jobless Claims (E: 221K), Philly Fed (E: 8.5) and Existing Home Sales (E: 5.450M).
As has been the case, the stronger the data, the better, and if we get decent prints from these reports, we’ll be looking at 3200 in the S&P 500 shortly after the open.
What’s in Today’s Report:
It is another slow morning in the markets as stock futures are tracking the modest gains of overseas equities amid good economic data but underwhelming earnings news.
FDX shares are down 7% in pre-market trading after the company missed on earnings and lowered 2020 guidance.
The German Ifo Survey showed improving economic sentiment in Europe’s largest economy with both Current Conditions and Business Expectations figures topping estimates which is helping EU stocks edge higher this morning.
Looking into today’s session, it is lining up to be another quiet day as there are no economic reports and only one Fed official is scheduled to speak: Evans (12:40 p.m. ET).