“Looking at this earnings season, the key question is: Will trade uncertainty cause businesses to pull back on spending and investment enough so that it begins to weigh on earnings?” Tom Essaye, founder of the Sevens Report, said in a note. Click here to read the full article.
What’s in Today’s Report:
Futures are modestly lower this morning as the market digests several disappointing earnings releases (notably CSX and NFLX) while U.S.-China trade concerns linger after multiple negative news articles were released overnight.
Economically, U.K. Retail Sales beat (1.0% vs. E: -0.3%), which is helping the pound recover from fresh 2019 lows.
News flow will remain steady today with two economic reports to watch: Jobless Claims (E: 215K) and Philadelphia Fed Business Outlook Survey (E: 4.5) while there is one Fed official scheduled to speak: Williams (2:15 p.m. ET).
Over the last 24-36 hours, earnings became a more significant driver of the broader stock market so today’s corporate results will be important to watch. Before the bell UNH ($3.46), MS ($1.13), HON ($2.08), and UNP ($2.12) all release results and MSFT ($1.21), and COF ($2.84) will report after the bell.
“Looking at this earnings season, the key question is: Will trade uncertainty cause businesses to pullback on spending and…” said Tom Essaye, founder of the Sevens Report, in a note. Click here to read the full Yahoo Finance article.
Tyler Richey, co-editor at Sevens Report Research wrote in a note to clients, “Near term, the trend is still higher. But formidable technical resistance…” Click here to read the full article.
Stocks fell from record highs on Tuesday after President Donald Trump cast doubt on the trade progress between China and the U.S. “Looking at this earnings season, the key question is: Will trade uncertainty cause businesses to pullback on spending and investment enough so that it begins to weigh on earnings?” said Tom Essaye, founder of the Sevens Report. Click here to read the full article.
What’s in Today’s Report:
Futures are trading modestly higher this morning as investors digest the mixed set of corporate earnings releases so far this week after an otherwise quiet night of macro news.
Eurozone inflation was 1.3% vs. (E) 1.2% year/year in June, but the slightly firmer than expected print was not enough to alter the outlook for ECB policy (the euro is flat).
Today, there is one economic report to watch: Housing Starts (E: 1.260M) and one Fed official scheduled to speak: George (12:30 ET).
With news-flow considerably slower today than yesterday, investor focus will remain on earnings as the reporting season continues to pick up.
Notable releases today include: BAC ($0.70), PNC ($2.83), USB ($1.07), BK ($0.94) before the open, and NFLX ($0.56), IBM ($3.06), EBAY ($0.62), AA (-$0.34), KMI ($0.23) after the close.
“Near term, the trend is still higher, but formidable technical resistance in the mid-$60s and persistent demand concerns due to…” Tyler Richey, co-editor at Sevens Report Research in Florida, wrote in a note to clients. Click here to read the full Bloomberg article.
What’s in Today’s Report:
Futures are flat as investors await earnings releases from several big banks this morning while the dollar is rallying after economic data in the EU missed expectations.
The German ZEW Survey showed deteriorating confidence among analysts for both the current state, and the future outlook of the German economy while the British Labour Market Report saw the largest jump in jobless claims since 2009 but also a sharp spike in wage growth (+3.4%). Both the euro and the pound are declining on the news, supporting a rally in the dollar.
From a news flow standpoint, it is lining up to be a very busy day.
Beginning with economic data, Retail Sales (E: 0.1%), Import & Export Prices (E: -0.5%, -0.1%), Industrial Production (E: 0.1%), and the Housing Market Index (E: 65) are all due to be released by 10:00 a.m. ET. Retail Sales will be the most important report to watch, but all of the data has the ability to move markets today.
Turning to the Fed, there are multiple speakers today: Bowman & Bostic (8:15 a.m. ET), Kaplan (12:20 p.m. ET), Powell (1:00 p.m. ET), and Evans (3:30 p.m. ET). Focus will clearly be on Powell in the early afternoon, but any other commentary that wavers from the markets expectations for a 25 basis point rate cut at the FOMC meeting this month could trigger some volatility.
Lastly, the earnings calendar picks up today and investors will be watching the several major banks due to release their Q2 results ahead of the bell: JPM ($2.50), GS ($4.82), and WFC ($1.16) very closely after yesterday’s mixed report from C.
JNJ ($2.42) is also due to report pre-market and we will get some transportation earnings after the close this afternoon: CSX ($1.11) and UAL ($$4.06).
Bottom line, earnings are in focus but even with solid corporate results, economic data will need to remain Goldilocks and Fed chatter needs to keep a dovish tone for stocks to continue to churn to fresh all time highs.
“There are a lot more risks underlying this market than the tape would imply. If global economic data does not stabilize, or…” wrote Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here to read the full article on Bloomberg.
What’s in Today’s Report:
S&P futures are modestly higher this morning while overseas markets were little changed overnight as mixed economic data was digested ahead of a busy week of earnings.
Chinese GDP slowing to 6.2% vs. (E) 6.3% initially caught investors’ attention but Fixed Asset Investment, Industrial Production, and Retail Sales all solidly beat expectations, helping Chinese shares recover 1.5%+ to close with a modest gain.
Looking into today’s session, there is one economic report to watch: Empire State Manufacturing Survey (E: 0.5) and one Fed official is scheduled to speak: Williams (8:50 a.m. ET).
Meanwhile, market focus is shifting to earnings as the Q2 reporting season gets underway this week. Today, there are just two notable reports with C (E: $1.78) ahead of the bell and JBHT (E: -$0.08) after the close.