Seizing Long Term Opportunities in Energy

/in /by

What’s in Today’s Report:

  • Seizing Long Term Opportunities in Energy

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.

Sevens Report Co-editor Tyler Richey Quoted in Hellenic Shipping News on April 27, 2020

/in , /by

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.

Tyler Richey

Tom Essaye Quoted in Yahoo Finance on April 27, 2020

/in /by

“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.

Tom Essaye Quoted in Barron’s on April 28, 2020

/in /by

“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.

New York Stock Exchange

Sevens Report Co-editor Tyler Richey Quoted in MarketWatch on April 28, 2020

/in /by

“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.

Gold

Fed Meeting Preview

/in /by

What’s in Today’s Report:

  • FOMC Preview

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 Interviewed with Yahoo Finance on April 24, 2020

/in /by

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.

Tom Essaye Quoted in CNBC on April 21, 2020

/in /by

“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.

Tom Essaye Quoted in CNBC on April 24, 2020

/in /by

“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.

CNBC_Graph

What the Bulls Need to Believe

/in /by

What’s in Today’s Report:

  • What the Bulls Need to Believe
  • Weekly Market Preview:  The Remdesivir trial results are the biggest event this week.
  • Weekly Economic Cheatsheet:  Fed meeting Wednesday (will they reiterate the promise to do whatever it takes to support the markets?)

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.