“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.
What’s in Today’s Report:
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, 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.
“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.
“Looking ahead, it’s still all about demand for oil right now, and so far there is little evidence to support the idea…” said Tom Essaye, founder of The Sevens Report. Click here to read the full article.
What’s in Today’s Report:
Futures are moderately higher as markets are extending Friday’s rally following a very quiet weekend.
Anticipation for the reopening of the U.S. and global economy is the “reason” for the rally this morning, although nothing new occurred on that front over the weekend. Instead, there was just a lot of chatter about reopening in the media, and that is helping stocks rally absent any other important news.
There were no economic reports overnight.
Notably, markets are ignoring a greater than 10% drop in oil prices this morning, as oil markets digest last week’s volatility (and late week rally).
Today there are no economic reports and no Fed speakers, so markets will remain focused on the rollout of reopening plans by states (larger states matter most), and the results from a Remdesivir trial, which will come literally any day this week. The Remdesivir trial results need to meet optimistic expectations, otherwise we’ll likely see another drop in stocks similar to what we say last week.
“The oil market is sending a bold warning that economic growth may not recover nearly as quickly as some equity investors would hope…” wrote Tom Essaye, president of the Sevens Report, in a Tuesday note to clients. Click here to read the full article.
“The oil market is sending a bold warning that economic growth may not recover nearly as quickly as some equity investors would hope,” wrote Tom Essaye, president of the Sevens Report, in a Tuesday note to clients. “The S&P 500 is pricing a relatively quick return to a normal economy…” Click here to read the full article.
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 week in 2019…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Futures are moderately higher following a quiet night of news.
Economic data was disappointing, again, as British Retail Sales dropped –5.1% vs. (E) -3.5%, while German Ifo Business Expectations declined to 69.4 vs. (E) 75.0. But, once again markets are looking past current data and instead focusing on hope that the worst is behind us.
There was no notable coronavirus news overnight.
Today focus will be on economic data, specifically Consumer Sentiment (E: 68.1) as it offers us a more “real-time” gauge of economic activity. Durable Goods (E: -11.4%) will also be closely watched, although it’s a March report so it won’t reflect the depths of the slowdown in business spending.