As Tom Essaye, founder of The Sevens Report said :
“The five pillars of the rally (Federal stimulus, FOMC stimulus, vaccine rollout, divided government and…” Click here to read the full article.
“All the bluster did not change in a significant way to the perspective of the actions, since the markets were still waiting (and finally received) the stimulus…”, points Tom Essaye, founder of The Sevens Report, as collected CNBC. Click here to read the article.
Tom Essaye, the founder of the Sevens Report, was more cautious, however, commenting:
‘At this point, markets have priced in and are expecting stimulus near term, so if that really does not happen…’ Click here to read the full article.
“At this point, markets have priced in and are expecting stimulus near term, so if that really does not happen by the…” for risk assets, wrote Tom Essaye, founder of The Sevens Report. Click here to read the full article.
What’s in Today’s Report:
Futures are modestly higher following reports that the stimulus bill might be broken up into two parts (with the larger part passing before year-end).
Congress is going to try and pass two stimulus bills, the first a $750 billion-ish relief bill, and after that, a 200 billion-ish bill that deals with stickier issues of state funding and COVID liability. The market is rallying on this news because it increases the chances of near-term stimulus (although even if this happens, and it’s not a done deal, it’s already priced into stocks).
Economic data was sparse as EU Industrial Production was in-line with estimates at 2.1% vs. (E) 2.0%.
Today there are no economic reports and no Fed speakers so stimulus headlines will drive trading. The key will be Pelosi as she’s not been in favor of a two-part bill before, so her support (or not) will be critical to the chances of stimulus actually happening. Bottom line, if she’s for it, expect a further rally. If she’s not, expect stocks to turn negative on the news.
What’s in Today’s Report:
Futures are slightly higher following Wednesday’s tech-driven declines as markets wait for the ECB decision and more clarity on stimulus and Brexit trade negotiations.
Economic data was sparse overnight, as the only notable report was UK Industrial Production which beat estimates (1.3% vs. (E) 0.3%).
There was no notable news or progress on stimulus (still no deal) or Brexit (still no trade deal) overnight, although the “deadlines” for both events were either moved, or about to be moved, implying that negotiations on both stimulus and Brexit will continue for the coming days (this is what the market expected and already priced in).
Today could be a sneakily busy day with the ECB Announcement (E: € 500 bln Increase in QE), CPI (E: 0.1%/1.1%) and Jobless Claims (E: 724K) all coming today.
Regarding the ECB, the risk here is of a “not dovish enough” outcome as they’ve allowed expectations to get pretty high, and if that happens look for mild stock losses and higher yields global bond yields (including Treasuries).
CPI should stay tame at this point, but we’ll be watching this closely going forward. Finally, weekly jobless claims are “noisy” right now because of the Thanksgiving holiday, but the bottom line is markets want to see claims moving lower, and a break below 700k would be a tailwind on stocks.
“We proceed to suppose the rotation to value must be centered on making a extra balanced value/development portfolio, and never abandoning…,” stated Tom Essaye, editor of The Sevens Report investing publication, in a report Tuesday. Click here to read the full report.
“We continue to think the rotation to value should be focused on creating a more balanced value/growth portfolio, and not…” said Tom Essaye, editor of The Sevens Report investing newsletter, in a report Tuesday. Click here to read the full article.
“We continue to think the rotation to value should be focused on creating a more balanced value/growth portfolio…” said Tom Essaye, editor of The Sevens Report investing newsletter, in a report Tuesday. Click here to read the full article.
Sevens Research Report Founder and President Tom Essaye interviewed with BNN Bloomberg, says the clarity in the Biden administration and on vaccine development that took place in November is giving investors…Click here to watch the full interview.
