Tom Essaye Interviewed with WPTV Channel 5 on April 28, 2020
Tom Essaye interviewed with WPTV Channel 5 discussing entrepreneurial ventures see increase in demand amid COVID-19. Click here to watch the full interview.
What Yesterday’s Fed Decision Means for Markets
What’s in Today’s Report:
- FOMC Takeaways: The Fed Put Is Alive And Well
- How Bad Was Q1 GDP?
- Oil Update & Inventory Analysis
Futures are little changed as strong tech earnings are helping markets digest yesterday’s big rally.
Economically, the Chinese manufacturing PMIs were “ok.” The government number was again above 50 (50.4) while the research firm Ciaxin’s manufacturing PMI was a slight disappointment at 49.4 vs. (E) 50.1. Bigger picture, while it would have been nice to see a stronger recovery this month, it is still encouraging to see activity returning to “normal” just a few months after the height of the outbreak.
Facebook and MSFT earnings were strong after hours and commentary was cautiously positive (activity is stabilizing in April after sharp declines in March).
Today the key report is again Jobless Claims (E: 3.5MM) and as has been the case, any significant decline from the previous week will a marginal positive despite the absolute numbers still being historically high.
Other events today include the Fed’s preferred measure of inflation, the Core PCE Price Index (E: -0.1%) and an ECB Rate Decision (7:45 a.m. ET). The ECB may increase its QE program, but that is already expected at some point this year, so even if they do later today it shouldn’t move markets too much.
Seizing Long Term Opportunities in Energy
What’s in Today’s Report:
- Seizing Long Term Opportunities in Energy
Futures are higher this morning while international equity markets are mixed as strong tech earnings offset soft economic data ahead of the FOMC Announcement today.
GOOGL is up 8% in pre-market trade after reporting strong Q1 results after the close yesterday while the European Commission’s Economic Sentiment Index fell more than expected, down to 67.0 vs. (E) 75.0 as the fallout from the coronavirus pandemic has weighed heavily on business activity.
Today, there are two economic reports to watch: GDP (E: -3.8%) and Pending Home Sales Index (E: -5.4%) but the main focus during the primary session will be on the FOMC Meeting Announcement (2:00 p.m. ET) followed up by Fed Chair Powell’s Press Conference (2:30 p.m. ET).
Earnings season also remains in full swing with: BA (-$2.04), MA ($1.72), HUM ($4.84), NOC ($5.42), YUM $0.64), SHW ($4.01), and VLO (-$0.19) all reporting ahead of the bell while MSFT ($1.27), FB ($1.72), QCOM ($0.80), and TSLA (-$0.53) release their Q1 results after the close.
The main thing investors are looking for today is reassurance from the Fed, specifically that they remain committed to doing “whatever it takes” to support the economy through the COVID-19 pandemic and are focused on restoring the economy to its previous state as quickly as possible.
Sevens Report Co-editor Tyler Richey Quoted in Hellenic Shipping News on April 27, 2020
Despite the drop in active rigs, the EIA on Wednesday showed domestic oil production “perfectly unchanged” at 12.2 million barrels per day, “relative to the corresponding…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
Tom Essaye Quoted in Yahoo Finance on April 27, 2020
“All the data is horrific. But it’s getting less bad than it was say a couple weeks ago and that’s especially true with…” said Sevens Report Research founder Tom Essaye on Yahoo Finance’s The First Trade. Click here to read the full article.
Tom Essaye Quoted in Barron’s on April 28, 2020
“Coronavirus headlines were mostly positive overnight as there were reports of expanded testing capabilities in the U.S., the growth rate of new cases continues to…” writes The Sevens Report’s Tom Essaye. Click here to read the full article.
Sevens Report Co-editor Tyler Richey Quoted in MarketWatch on April 28, 2020
“The report is weighing on optimism that the global economy would swiftly recover after being effectively closed for weeks due to…” said Tyler Richey, co-editor at Sevens Report Research, adding that the news helped gold bounce off its earlier lows. Click here to read the full article.
Fed Meeting Preview
What’s in Today’s Report:
- FOMC Preview
S&P futures are up 1% this morning, tracking European shares higher as economies around the globe begin to reopen while investor focus shifts ahead to the slew of earnings releases in the coming days as well as multiple central bank meetings this week.
Coronavirus headlines were mostly positive overnight as there were reports of expanded testing capabilities in the U.S., the growth rate of new cases continues to slow in the U.S., and states across the country are beginning the process of lifting COVID-19 containment policies.
The FOMC meeting begins today (concluding tomorrow) while there are a few notable economic reports to watch this morning: International Trade in Goods (E: -%51.5B), S&P CoreLogic Case-Shiller HPI (E: 0.4%), and Consumer Confidence (E: 95.0).
Investors will be increasingly focused on earnings this week as we approach the peak of the Q1 reporting season.
There are several major corporations, from manufacturing to tech sectors, releasing results today including: MMM ($2.02), PEP ($ 1.02), PFE ($0.71), UPS ($1.23), CAT ($1.77), MRK ($1.39), LUV (-$0.48), BP ($0.28), AMD ($0.18), GOOGL ($10.97), F (-$0.10), CHRW ($0.71).
Tom Essaye Interviewed with Yahoo Finance on April 24, 2020
Tom Essaye, The Sevens Report founder interviewed with Yahoo Finance’s Brian Sozzi and Alexis Christoforous discussing the market action, jobless claims, earnings and more. Click here to watch the full interview.
Tom Essaye Quoted in CNBC on April 21, 2020
“The historic drop by front month oil futures was largely due to logistical issues in the physical market, namely lack of available storage…” wrote Tom Essaye, founder of The Sevens Report. Click here to read the full article.
