Why Tech Is Outperforming Again

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What’s in Today’s Report:

  • Why Tech Is Outperforming Again
  • A Correction to the “Is FAANGM Now GARP?” Section
  • Consumer Confidence – Chart

Stock futures are trading modestly higher this morning while international markets are mixed as inflation and taper fears continue to ease ahead of key economic data due later in the week.

The only economic report overnight was the French Business Climate Indicator which came in at 107 vs. (E) 105 but the release did not materially move markets.

Today, there are no economic reports due to be released and just one Fed official is scheduled to speak: Quarles (10:00 a.m. and 3:00 p.m. ET).

There is a 5-Yr Treasury Note Auction at 1:00 p.m. ET and as has been the case for most of this year, any significant surprises in the results could move both stock and bond markets significantly, but that is less likely today given focus is on Friday’s inflation data.

Sevens Report Co-Editor Tyler Richey Quoted in MarketWatch on May 24, 2021

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Oil futures moved sharply higher on Monday, with U.S. prices posting their highest settlement in a week, buoyed by some doubts that an Iran nuclear deal will be reached anytime soon. A lack of cooperation by Iran, as well as “skeptical comments about Iranian compliance” by U.S. Secretary of State Antony Blinken, both “lower the odds that a new agreement is…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.

Tyler Richey

Sevens Report Co-Editor Tyler Richey Quoted in MarketWatch on May 24, 2021

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Oil prices up sharply as U.S. official raises doubt that Iran will comply with nuclear commitments

“The general optimism about the economic reopening process, especially in the U.S.,” buoyed all risk assets Monday, “especially oil and refined products as traders look ahead to the unofficial start of the summer driving…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.

Is FAANGM Now GARP?

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What’s in Today’s Report:

  • Is FAANGM Now GARP?
  • Chart: The 10-Yr Note Yield Is Approaching Key Trend Support

U.S. stock futures are extending yesterday’s gains this morning as easing inflation concerns and more accommodative Fed chatter are fueling a rebound in tech shares.

The German Ifo Survey topped estimates overnight offering further evidence that the economic recovery is accelerating in the EU.

This morning, there are several housing market reports to watch: Case-Shiller Home Price Index (E: 1.3%), FHFA House Price Index (E: 0.9%), and New Home Sales (E: 957K), before May Consumer Confidence data (E: 119.0) is released shortly after the bell.

Additionally, there is a 2-Yr Treasury Note Auction at 1:00 p.m. ET that could impact Fed policy expectations (a weak auction could rekindle taper fears) and one Fed official is scheduled to speak: Quarles (10:00 a.m. ET).

Tom Essaye Quoted in ETF Trends on May 24, 2021

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Why Are Commodities Having Such a Spectacular Year?

Commodities are the basic input for global growth and contribute and correlate with inflation. Consequently, related ETFs would typically…explained Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here to read the full article.

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Tom Essaye Quoted in Bloomberg on May 24, 2021

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Tech Leads Gains in Stocks as Inflation Fears Ease: Markets Wrap

Until then, expect a more volatile market, but at this point, strong policy support for stocks remains very much in place, and that’s a good thing…according to Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here to read the full article.

Tom Essaye Quoted in ThinkAdvisor on May 24, 2021

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Cathie Wood Trims Her Biggest Stakes as Ark Funds Stumble

This is an evolution a bit — Ark accepting it’s a large fund-family now, it makes sense that especially in some of the smaller cap names they are reducing…said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here to read the full article.

Tom Essaye Quoted in Barron’s on May 20, 2021

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Virgin Galactic Soars, Merck Falls, and Stocks Are Down Again

“Futures are marginally lower as markets digested the slightly hawkish FOMC minutes,” writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

Tom Essaye Quoted in Bloomberg on May 23, 2021

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Nasdaq 100 Rallies 2% as Inflation Concerns Ebb: Markets Wrap

Inflation fears will remain a headwind for stocks until it becomes clear that price pressures are temporary. “Until then, expect a more volatile market, but at this point, strong policy support for…” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here for the full article.

Tom Essaye Quoted in Bloomberg on May 20, 2021

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U.S. Stocks Are Mixed; Bitcoin Resumes Decline: Markets Wrap

“For people to say Bitcoin shouldn’t influence equity prices on a short-term basis, that’s crazy. We live in a 24/7 market and at least in the short term…” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here for the full article.