Oil prices had spent the front half of the week moving lower “largely thanks to lingering oversupply concerns and a continued unwind of the geopolitical fear bid that was triggered by the U.S.-Iran…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
“Phase one is behind us and it met market expectations,” said Tom Essaye, founder of The Sevens Report, in a note. “Now the very real question of whether phase one results in an uptick in economic growth lies in front of us, and the truth is it’s unclear. Nothing in phase one…” Click here to read the full article.
What’s in Today’s Report:
Futures are modestly higher again after Chinese economic data beat expectations.
Chinese Fixed Asset Investment (5.4% vs. (E ) 5.2%, Industrial Production (6.9% vs. (E ) 5.9%, and Retail Sales (8.0% vs. (E ) 7.8%) all beat estimates, raising hopes for a global economic rebound.
Today focus will again be on economic data and earnings, and like yesterday, the stronger the data, the better. Industrial Production (E: -0.3%) and Consumer Sentiment (E: 99.3) are the two key reports today, while we also get Housing Starts (E: 1.373M).
On the earnings front, industrial results have been mixed this week so the market will want to see solid results from SLB ($0.37), FAST ($0.31) and JBHT ($1.55).
Finally, there are two Fed Speakers today: Harker (9:00 a.m. ET) and Quarles (12:45 p.m. ET), but neither should move markets.
“The modern economy is powered by semiconductors,” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “Semiconductors are extremely important and that’s one of the things I put, from a short-term standpoint…” Click here to read the full article.
Sevens Report Founder Tom Essaye and Invesco Investment Strategist Tim Horsburgh join Yahoo Finance’s Alexis Christoforous, Brian Sozzi and Jared Blikre to discuss the latest market action on The First Trade. Click here to watch the full interview.
What’s in Today’s Report:
Futures are modestly higher following a quiet night of news as markets continued to digest that the actual text of the phase one trade deal largely meet expectations.
Economic data was sparse as the only report was German CPI and it met estimates at 1.5% yoy.
Today focus will be on economic data and earnings, as there are several important economic reports including (in order of importance): Retail Sales (E: 0.3%), Philly Fed (E: 3.4), Jobless Claims (E: 214K), and Housing Market Index (E: 75). There is also one Fed speaker, Bowman (10:00 a.m. ET), but he shouldn’t move markets.
On the earnings front, results have been mixed so far this week, and focus will turn more towards earnings now that phase one is a done deal. Some important reports we’ll be watching today include: MS ($0.98), SCHW ($0.64), BK ($0.99), TSM ($0.72), CSX ($0.97), PPG ($1.35).
Tom Essaye, president of the Sevens Report, said in a note to clients that the near 10% rally the S&P 500 pulled off in the fourth quarter of last year was driven by the idea that “the U.S.-China trade truce combined with global central bank easing (and specifically the Fed being very dovish)…” as reported by MarketWatch. Click here to read the full article.
What’s in Today’s Report:
Futures are slightly lower while international equity markets were little changed overnight as investors look ahead to the signing ceremony of the phase-one trade deal between the U.S. and China and await more earnings.
Economically, Eurozone Industrial Production for the month of November was a mild miss coming in at 0.2% vs. (E) 0.3% which is modestly weighing on EU shares today.
Looking into today’s session, there are two economic reports to watch: PPI (E: 0.2%) and Empire State Manufacturing Index (E: 3.5) and two Fed officials are scheduled to speak: Harker (11:00 a.m. ET) and Kaplan (12:00 p.m. ET).
Investors however will remain focused on earnings with: BAC ($0.74), UNH ($3.90), GS ($5.20), and BLK ($7.67) all due to release results this morning.
What’s in Today’s Report:
International markets were mixed overnight and stock futures are slightly lower as investors digest Chinese trade data and look ahead to the start of earnings season.
Final Chinese trade data from 2019 revealed a rise of just 0.5% in exports while imports dropped 2.8% on the year versus double digit gains in each in 2018. The trade figures underscore the detrimental effects of the trade war on the Chinese and broader global economies.
Looking into today’s session, focus will be on the unofficial start to earnings season as several major corporations are due to report, including three big banks: JPM ($2.32), DAL ($1.40), C ($1.82), and WFC ($1.12).
Beyond earnings, there is one key economic report to watch: CPI (E: 0.3%), while two Fed officials are scheduled to speak: Williams (9:00 a.m. ET) and George (E: 1:00 p.m. ET).
For investors, the wage number will be the key point in this report, said Tom Essaye, a former Merrill Lynch trader who founded the “Sevens Report” newsletter. Assuming annual pay gains hold around 3.1% and hiring is strong, stocks should rally: “The market will love it because…” he said. Click here to read the full article.
