Tom Essaye quoted in Axios on May 30, 2019. “The 2019 rally has been driven by 1) A dovish pivot by the Fed (no more hikes), 2) An expected U.S.-China trade deal, 3) Stable U.S. and global economic growth and…” Click here to read the full article.
The Federal Reserve has been on cruise control thus far in 2019 with respect to interest rate policy, opting to keep the federal funds rate untouched. However, the bond markets are screaming for a rate cut, according to Sevens Report Research. Click here to read the full article.
Tom Essaye was quoted in Markets Insider on May 15, 2019. The red metal has been the “single-best leading indicator for stocks over the past 18 months,” and is flashing a warning sign for…” Click here to read the full article.
Sevens Report founder Tom Essaye says the market can still rally despite disappointing bank earnings. Watch the full clip here.
What’s in Today’s Report:
Futures are flat following a quiet weekend as markets digest last week’s rally.
Expectations of a U.S./China trade deal continue to rise, with some anticipating an announcement this week. The WSJ, Reuters and others had positive articles this morning. But, as a reminder, the market has already priced in a deal, so the real focus of any announcement will be when tariffs are removed, and the sooner, the better.
There was no notable international or U.S. economic data overnight.
Today there is one notable economic report, Empire State Manufacturing Index (E: 6.8) and one Fed speaker, Evans at 8:30 a.m. & noon. Given that somewhat light calendar, focus will be on earnings, and some numbers we are watching today include: C ($1.78), GS ($5.05), JBHT ($1.25). If data and earnings are solid, this rally can continue.
Tom Essaye was quoted in Axios to share his take on U.S./China trade deal, the big picture and more. Read the full article here.
U.S. Trade Representative, Robert Lighthizer, urged caution on China while testifying before Congress. Tom Essaye, Founder of the Sevens Report Research, joined Cheddar to discuss the contradicting narratives coming from President Trump, market and…Watch the entire interview here.
What’s in Today’s Report:
Futures and global markets are moderately higher following positive reports on U.S./China trade and the potential for economic stimulus in the EU.
Reuters and Axios both had positive U.S./China trade articles this morning, with Axios reporting Trump & Chinese President Xi may meet in mid-March in Florida. That’s particularly notable because it’s assumed the two leader’s won’t meet until a trade deal is effectively done. So, if the report proves to be true, there’s an end in sight which is an incremental positive.
There were also numerous reports that the ECB is considering re-introducing TLTROs (a type of cheap loan to spur economic activity) to combat slowing EU growth.
Today there are no economic reports or Fed speakers so I’d expect a generally quiet trading day unless we get surprise political (possible government shutdown Friday) or geo-political (more U.S./China trade) headlines.
Sevens Report’s Tom Essaye quoted in Axios on January 30, 2019. Read the full article here.
