Sevens Report’s Tom Essaye quoted in CNBC on December 26, 2018
Sevens Report’s Tom Essaye quoted in CNBC on December 26, 2018. Click here to read the entire article.
Valuation Update
What’s in Today’s Report:
- Valuation Update and a New “Fair Value” Trading Range
Futures are extending the late Thursday gains and are modestly higher thanks to momentum.
Economically, Japanese data disappointed as the Unemployment Rate (2.5% vs. (E ) 2.4%) and Retail Sales (1.4% vs. (E) 2.2%) missed expectations.
Today investors will see if the year-end bounce can continue. There are a few economic reports including International Trade in Goods (E: -$75.7B), Chicago PMI (E: 62.4) and Pending Home Sales Index (E: 1.5%) but none of those should move markets materially.
Was that the Bottom? (Technical Update)
What’s in Today’s Report:
- Technical Update: Was that the Bottom?
Futures are lower and giving back about 1/3 of yesterday’s massive rally on digestion and potentially negative U.S./China headlines. There was no notable economic data overnight.
The Trump administration is considering an executive order banning U.S. companies from using Huawei and ZTE products (both Chinese firms). This represents a potential escalation in ongoing U.S,/China tech/trade conflict, although so far China has viewed the trade and tech issues separately, and that needs to continue otherwise this market will face additional headwinds.
Today markets will try and digest yesterday’s massive rally with the best case scenario being a continued rally that sees the Dow and S&P 500 close above near resistance levels. Economically, we do get multiple reports including Jobless Claims (E: 217K), FHFA House Price Index (E: 0.2%), New Home Sales (E: 560K) and Consumer Confidence (E: 134.0) although none of those should move markets materially.
More Unforced Errors
What’s in Today’s Edition:
- More Unforced Errors
Stock futures are bouncing modestly this morning after the worst Christmas Eve selloff in history took place on Monday which saw all of the major indexes fall well over 2%.
News flows were mostly quiet over the last 48 hours however President Trump did make supportive comments regarding Secretary Mnuchin after he spooked markets Monday and continued to blame the Fed for the recent selloff.
There were no economic reports overnight.
There is not a lot on the calendar today as there are no Fed officials scheduled to speak and there is just one economic report to watch: S&P Corelogic Case-Shiller HPI (E: 0.4%).
As a result, investor focus will remain on U.S. politics and global growth as they have been the main reasons for the most recent stock declines.
Long Term Entry Point?
What’s in Today’s Report:
- Why I’m Buying Some Stock in My IRA Today
- Weekly Economic Cheat Sheet
- Weekly Market Preview
Futures are seeing a modest oversold bounce following a generally quiet weekend.
If there is a “reason’ for this modest bounce in futures it was the administration trying to reassure investors over the weekend. Treasury Secretary Mnuchin tried to calm markets by 1) Stating Trump knows he can’t fire Fed Chair Powell and 2) Calling the heads of major U.S. banks to ensure there were no liquidity problems (there weren’t).
There was no notable economic data or U.S./China trade updates over the weekend.
Today there are no economic reports and no Fed speakers, and the markets close early (1:00 p.m. ET).
Sevens Report’s Tom Essaye quoted in The Wall Street Journal on December 12, 2018
Sevens Report’s Tom Essaye quoted in The Wall Street Journal on December 12, 2018. Read the full article here.
Sevens Report’s Tom Essaye quoted in Barron’s on December 12, 2018
Sevens Report’s Tom Essaye quoted in Barron’s on December 12, 2018. Read the full article here.
Sevens Report’s Tom Essaye quoted in Barron’s on December 13, 2018
Tom Essaye quoted in Barron’s on December 13, 2018. Read the full article here.
Sevens Report’s Tom Essaye appeared on Cheddar on December 12, 2018
Sevens Report’s Tom Essaye appeared on Cheddar on December 12, 2018. He breaks down how Trump’s optimism on trade talks, and impacted the markets.
Watch the entire clip here.