“By now, we are all used to companies beating analyst estimates,” said Tom Essaye, founder of Sevens Report. “The key …” Click here to read the full article.
Tom Essaye, Founder and President of Sevens Report Research, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss market outlook, bank earnings, and the latest economic data and more…Click here to read the full article.
What’s in Today’s Report:
Stock futures are wavering between gains and losses this morning as a spike in COVID-19 cases in several global “hot spots” is raising concerns about the future of the economic recovery while NFLX earnings disappointed yesterday.
A sharp rise in COVID cases in Japan and India caused Asian markets to decline overnight amid the threat of new lockdowns and ultimately a slower than expected economic normalization process.
There are no economic reports or Fed speakers today but there is a 20-Year T-Bond auction at 1:00 p.m. ET that could move Treasury markets.
Aside from coronavirus developments, market focus will remain on earnings today following yesterday’s disappointing results by NFLX. Notable companies releasing Q1 results today include: VZ ($1.29), NEE ($0.61), CMG ($4.88), DFS ($2.88), LVS (-$0.28), and CP ($3.46).
What’s in Today’s Report:
U.S. stock futures are trading lower with most overseas markets as investors digest the recent run to fresh records amid rising COVID-19 cases and mostly upbeat earnings.
German PPI was hotter than expected o/n with a headline of 0.9% (E: 0.5%) but the report is not materially moving markets.
Looking into the U.S. session today, there are no economic reports and no Fed officials are scheduled to speak. There is a 52 Week T-Bill Auction at 11:30 a.m. ET, however, that could influence bond yields and ultimately stocks if the results are far from expectations.
Earnings season will continue to pick up today with JNJ ($2.31), LMT ($6.32), PG ($1.19), and TRV ($2.44) releasing Q1 results ahead of the bell while NFLX ($2.98), CSX ($0.95), and IBKR ($0.90) will report after the close.
Bottom line, markets have been trading with a risk-off tone so far this week amid a resurgence in COVID-19 cases in several global hotspots. And if the news flow regarding the latest regional outbreaks continues to deteriorate, stocks could continue to decline, potentially sharply, as the health of the recovery will come into question.
There is some chatter about demand concerns “with new lockdown measures being imposed in India and other COVID-19 hotspots around the globe, however…” Tyler Richey, co-editor at Sevens Report Research, told MarketWatch. Click here to read the full article.
The yield fell to 1.55% from 1.63%. Once it fell below 1.60%, those who were short the bonds rushed to buy them back, according to Sevens Report Research. That sent the price higher and…Click here to read the full article.
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What’s in Today’s Report:
Futures are modestly lower as markets digest last week’s rally following a quiet weekend of news.
There was no notable domestic or international economic data or central bank speak over the weekend.
Bitcoin volatility is weighing slightly on some momentum stocks like TSLA as Bitcoin fell more than 19% at the lows this weekend, although it’s since recovered somewhat. However, the decline came on very low trading volumes.
Today there are no economic reports and no notable Fed speak, so focus will be on Treasury yields and if they can continue to stay low, and in doing so help support this rally in stocks. Earnings season also continues to move forward, with some notable reports today: KO ($0.50), IBM ($1.67), UAL (-$6.97).
What’s in Today’s Report:
Futures are moderately higher following a solid start to earnings season (GS/WFC/ABB/TSMC/LVMH all posted good results) and ahead of a lot of economic data later today.
Speaking of today’s data, the key reports to watch today are (in order of importance): Jobless Claims (E: 695K), Empire State Manufacturing Index (E: 17.0), Philadelphia Fed Manufacturing Index (E: 43.0), Retail Sales (E: 5.6%) and Industrial Production (E: 2.8%). As has been the case, markets will want to see solid activity to imply the economic recovery is on-going, but also no hints of building inflation pressures.
There are also several Fed speakers including Bostic (11:30 a.m. ET), Daly (2:00 p.m. ET) and Mester (4:00 p.m. ET). Yesterday Vice Chair Clarida got more forcefully dovish, so we’ll see if that sentiment is echoed by other Fed members today.
Finally, earnings season continues to roll on and we get several notable reports this morning including: BAC ($0.65), C ($2.56), TSM ($0.95), PEP ($1.12), UNH ($4.41), DAL (-$2.94), AA ($0.48), PPG ($3.67).
When it dips just below $60, it tends to edge higher. “As long as demand expectations don’t deteriorate materially, oil should be able…” Tom Essaye, the founder of Sevens Report Research, wrote in a note. Essaye has a Neutral recommendation on crude oil, though he told Barron’s it could go…Click here to read the full article.
What’s in Today’s Report:
Futures are little changed following a quiet night as markets wait for the latest reading on inflation via this morning’s CPI report.
Economic data was mixed overnight. UK Industrial Production was better than feared (-4.2% vs. (E) -5.1%) while the German ZEW Economic Sentiment slightly missed expectations (70.7 vs. (E) 77.0) but neither number is moving markets.
Today there are two notable events and both pertain to Treasury yields. First, we get Core CPI (E: 0.2% m/m, 1.6% y/y) and later this afternoon there is a 30 year Treasury auction. If CPI comes in hot and there’s tepid demand at the auction, Treasury yields will likely rise and that should be a headwind on stocks. Conversely, if CPI is tame and the auction is solid, yields will likely be little changed, and stocks should be able to grind higher.
We also have several Fed speakers today: George, Daly, Harker, Barkin (12:00 p.m. ET) and Bostic (3:15 p.m. ET) but unless they give us more insight into tapering requirements (like Bullard did yesterday) they shouldn’t move markets.