Markets will want ‘Goldilocks’ data to start the quarter, in that the numbers show solid…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Stock futures are little changed with investors focused on OPEC+’s failure to reach a new output policy agreement yesterday while economic data was mixed overnight.
OPEC+ called off a follow-up meeting yesterday after the UAE would not agree to extending production cuts through 2022 which drove oil to new multi-year highs in overnight trading as current cuts will remain in place by default, deepening supply deficit expectations for the second half of the year.
Economically, Final Composite PMI reports were mostly as expected while EU Retail Sales topped estimates but none of the data materially moved markets overnight.
Today, there is just one notable economic report to watch: ISM Services Index (E: 63.5), and no Fed officials are scheduled to speak. That will leave investors focused on the oil market in the wake of the OPEC+ developments as well as awaiting any news on infrastructure as the calendar is otherwise fairly quiet as we start the holiday-shortened trading week today.
This is the first quarter where we can honestly say it looked more like the…says Tom Essaye, a former trader who writes the Sevens Report. Click here to read the full article.
Markets will want ‘Goldilocks’ data to start the quarter, in that the numbers show solid activity, but…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Futures are slightly higher ahead of the jobs report following a quiet night of news.
The only notable economic report overnight was Eurozone PPI, which rose 9.6% yoy vs. (E) 9.5% yoy. That report isn’t moving markets, but it’s the second inflation report in two days to imply inflation pressures haven’t peaked.
There were no new developments on infrastructure.
Today the jobs number is key and expectations are as follows: Job Adds 675K, UE Rate 5.7%, Wages yoy 3.1%. As long as the headline job adds number isn’t close to 1 million and the wages number doesn’t spike well above expectations, markets should be able to generally digest this report, even if it is a mild surprise.
Other economic indicators today include International Trade in Goods (E: -$71.2B) and Factory Orders (E: 1.3%) but we don’t expect them to move markets.
What’s in Today’s Report:
Futures are slightly higher following a night of mixed economic data.
Global June manufacturing PMIs were mixed as the Japanese (52.4 vs. 53.0) and UK (63.9 vs. (E) 64.2) PMIs missed estimates, while the EU manufacturing PMI beat expectations (63.4 vs. (E) 63.1.).
The net impact of the data is to show the global recovery is on going, but also that it has lost a bit of momentum.
Today’s focus will be on economic data, with the two important reports being Jobless Claims (E: 387K) and the June ISM Manufacturing Index (E: 61.1). As has been the case, markets will want “Goldilocks” data to start the quarter, in that the numbers show solid activity, but nothing that would make the Fed taper more aggressively. There’s also one Fed speaker, Bostic at 2:00 p.m. ET, but he shouldn’t move markets.
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What’s in Today’s Report:
U.S. equity futures are trading lower with most international markets while bond yields are falling amid growing concerns about the Delta variant of COVID-19.
The Stoxx 600 Travel and Leisure sector is down more than 5% WTD, underscoring market fears of new lockdowns or travel restrictions in Europe due to the Delta variant outbreak.
There was a slew of economic data from China to Europe released overnight however all of it largely met estimates and therefore is not materially moving markets this morning.
Today, focus will be on any new developments regarding the latest uptick in COVID-19 cases, fueled by the Delta variant, as well as the first look at the June jobs data via the ADP Employment Report (E: 533K) due out ahead of the bell.
There is also a report on Pending Home Sales (E: -1.0%) and two Fed speakers: Bostic (8:00 a.m. ET) and Barkin (1:00 p.m. ET), but unless there are any major surprises none of those should materially move markets.
S&P futures are trading solidly higher this morning amid infrastructure…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
An orderly move higher in yields should be welcomed by equity markets as it will underscore investor confidence in the Fed’s ability to…Richey says. Click here to read the full article.
If their comments are more hawkish than expected it will be a…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.