“U.S./China trade talks are officially scheduled for October 10 and 11th and rhetoric from both sides remains positive ahead of the event. “At this point, a pretty comprehensive…” writes The Sevens Report’s Tom Essaye. Click here to read the full article.
“I think I would stay away from it [Peloton] for now, that’s for sure. That was not a successful deal for anyone other working at Peloton in the beginning,” said Sevens Report Research founder Tom Essaye on Yahoo Finance’s The First Trade.
Essaye added, “I think part of the failure of some of these high-flying IPOs is making me a little nervous. I don’t have any hard or fast…” Click here to watch the full video.
What’s in Today’s Report:
Futures are modestly higher on more U.S./China optimism following a quiet night of actual news.
U.S./China trade talks are officially scheduled for October 10th and 11th and rhetoric from both sides remains positive ahead of the event. At this point, a pretty comprehensive U.S./China trade truce is fully expected by the market.
Economically, EU Economic Sentiment and Chinese Industrial Profits both slightly missed estimates although neither number is moving markets.
Today there are two notable economic reports, Durable Goods (E: -1.2%) and Core PCE Price Index (E: 0.2% m/m, 1.8% y/y) and we need to see a “Goldilocks” result of solid Durable Goods (to ease fears about business spending and investment) and tame inflation (Core PCE Price Index is the Fed preferred measure of inflation and it needs to print sub 2%).
There are also two Fed speakers today, Quarles (8:30 p.m. ET) and Harker (12:00 p.m. ET), but neither should move markets.
Economic expert Tom Essaye with Sevens Report Research said this type of ‘voluntourism’ might be what it takes to make a difference in the Bahamas.
“Anything we can do now to help get them started is important,” he said. “We’ve got to break the idea that, ‘Hey I’m just not going to the Bahamas for a year or two.’ Because if everyone says that, it’s just going to make things worse…” Click here to watch the full interview.
In fact, the market seems to be worrying more about China and the state of the U.S. economy than impeachment, according to Sevens Report’s Tom Essaye. U.S./China trade remains the singular most important issue facing this market, and as long as markets have ‘hope’ of a U.S./China trade ‘truce,’ it’ll be hard to…” he writes.
Tyler Richey interviewed with Mid-Day Movers from TD Ameritrade discussing Nike, Foot Locker, Under Armour earnings, markets, and more…Click here to watch the full video.
U.S. supplies rose more than expected last week, though was “largely offset by the less-bearish to mildly bullish inventory statistics for the refined products…” said Tyler Richey, co-editor of Sevens Report Research. Click here to read the full report.
“Futures are higher with most overseas markets thanks to positive trade headlines…” writes the Sevens Reports’ Tom Essaye. Click here to read the article.
What’s in Today’s Report:
Stock futures are extending losses this morning and international equity markets were broadly lower overnight as political and trade uncertainties weigh on sentiment.
Speaker of the House, Nancy Pelosi, formally announced an impeachment inquiry regarding President Trump’s interactions with the President of Ukraine which has added to an already crowded list of potential market headwinds.
Otherwise, it was a relatively quiet night of news with no material economic data releases and no trade war developments.
Today, there is one economic report to watch: New Home Sales (E: 665K) and a relatively busy schedule of Fed speakers: Evans (8:00 a.m. ET), George (10:00 a.m. ET), and Kaplan (7:00 p.m. ET). There is also a 5-Yr Treasury Note Auction at 1:00 p.m. ET and based on yesterday’s very solid 2-Yr Auction that helped steepen the yield curve, the results could once again influence the stock market.
Beyond those scheduled market catalysts, investors will be focused on the fluid impeachment situation as well as sensitive to any trade war developments.
“Gold has fallen into a broad, near-term trading range between support at $1,500 and resistance above at $1,560. There are multiple influences on gold right now that could trigger…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
