“You’re seeing companies adapt and that’s exactly what’s going to have to happen in this economy,” financial expert Tom Essaye said. “The state could open tomorrow, but that doesn’t necessarily mean people will flock to restaurants, the mall and bars…” Click here to read the full article.
Traders moved to “square their books into the end of the month,” said Tyler Richey, co-editor at Sevens Report Research.
Gold “bulls will want to see stable interest rates and renewed recovery in inflation expectations” in order for a rally in gold to continue…” and gave some traders an excuse to book profits into month end. Click here to read the full article.
According to Tyler Richie, co-editor at Sevens Report Research, “The report is weighing on optimism that the global economy would swiftly recover after being effectively closed for…” Click here to read the full article.
What’s in Today’s Report:
Futures are sharply lower mostly on continuation from yesterday’s selling as markets digest the recent rally, although AAPL & AMZN earnings were mildly disappointing.
Economic data was soft again as the Japanese Manufacturing PMI (41.9 vs. (E) 44.8) and British manufacturing PMI (32.6 vs. (E) 32.9) both missed estimates.
On earnings, AAPL & AMZN numbers weren’t bad, but AAPL didn’t provide updated guidance while AMZN cited a significant coronavirus expense increase in Q2.
Today the key report will be the ISM Manufacturing Index (E: 39.0) and the key here is that it isn’t too much worse than estimates (if it is, that’ll increase concern about how deep the economic hole has become). Additionally, today is “May Day” and many of the world’s markets (EU, Hong Kong, China) are closed, so there will be a lack of volume/liquidity and that could exacerbate today’s volatility and any declines.
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’s in Today’s Report:
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.
What’s in Today’s Report:
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.
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.
“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.
“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.
