Commodities are an input to the global growth engine that tend to contribute to…according to Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here to read the full article.
Going forward, investors should monitor the 10-year Treasury yield to see if it goes above 1.74%, wrote Tom Essaye, founder of Sevens Report Research in a note. That’s the bond’s recent closing high, “and if the 10-year yield breaks those levels we can…” Essaye wrote. Click here to read the full article.
What’s in Today’s Report:
Futures are moderately higher as markets ignore more Bitcoin volatility following a generally quiet weekend.
Bitcoin volatility remained elevated, with the cryptocurrency falling more than 10% over the weekend, and then bouncing back more than 5% this morning, but markets are ignoring the volatility so far today.
There were no notable economic reports over the weekend, nor any notable central bank speak.
Today there are multiple Fed speakers but we’ll be watching Brainard (9:00 a.m. ET) and Mester (11:00 a.m. ET) specifically to see if there’s any reference to thinking about tapering (if there is look for a small hawkish response from markets). Bostic (12:00 p.m. ET) and George (5:30 p.m. ET) also speak today but shouldn’t move markets.
Tom Essaye interviewed with Seana Smith and Adam Shapiro from Yahoo Finance to discuss the latest market actions. Click here to watch the full interview.
What’s in Today’s Report:
Stock futures are tracking global equities lower this morning with tech shares leading to the downside as inflation fears continue to grip markets ahead of the Fed minutes.
Economically, the U.K. PPI report for April notably showed input prices jumped a staggering 9.9% y/y vs. (E) 4.4% which further stoked inflation fears overnight.
There are no notable economic reports today leaving investors to focus on the release of the Minutes to the April FOMC Meeting at 2:00 p.m. ET.
Additionally, there are two Fed officials speaking mid-morning: Bullard (10:00 a.m. ET) and Quarles (10:00 a.m. ET) however it is rather unlikely that either will say anything market moving given the looming release of the Fed minutes this afternoon.
Don’t get blindsided by market volatility. We can help you learn more about markets and save time. To start your free two week trial of The Sevens Report, click here and enter your email address.
What’s in Today’s Report:
Futures are trading modestly higher in sympathy with global shares which rallied on rising re-opening bets overnight while economic data came in largely as expected.
Economically, Japanese and Eurozone GDP data as well as the U.K. Labour Market Report all printed largely in-line with estimates o/n and did not materially move markets.
Today, there is one economic report: Housing Starts (E: 1.715M) but it should not have a major impact on markets while the Treasury will hold a 52-Week Treasury Bill auction at 11:30 a.m. ET (these shorter duration auctions will become increasingly important as investors gauge the market’s taper/tightening expectations).
Turning to Fed, there are two speakers to watch today: Bostic (11:00 a.m. & 12:30 p.m. ET) and Kaplan (11:05 a.m. ET).
You can receive the Sevens Report for free, click here to take advantage of this offer.
Oil futures climbed on Friday, erasing previous losses to finish higher for the week. “The Colonial Pipeline debacle got most of the attention from energy traders this week…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Futures are modestly lower following disappointing Chinese economic data.
Chinese economic data joined recent U.S. data in hinting at a possible plateauing recovery and building inflation pressures. Industrial Production rose 9.8% vs. (E) 10.0% while Retail Sales gained 17.7% vs. (E) 25%. Housing Prices, meanwhile, rose 0.48% vs. (E) 0.41%.
Today the Empire Manufacturing Survey (E: 25) is the key report and markets will want to see solid data and stable prices indices. We also get the Housing Market Index (E: 83) but that shouldn’t move markets.
From a Fed standpoint, Clarida (10:05 am ET) is the headliner today while Bostic (10:00 a.m. ET) will also provide comments.
“Futures are moderately higher on momentum from Thursday’s rebound combined with a drop in industrial metals’ prices…” writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Futures are moderately higher on momentum from Thursday’s rebound combined with a drop in industrial metals’ prices, which is helping to ease some anxiety on inflation.
Iron ore prices dropped sharply overnight as Chinese officials stated they would take measures to curb price increases in various industrial metals and that headline is pushing back on the “surging inflation” narrative (although it doesn’t change the inflation outlook).
There was no notable economic data overnight nor any important central bank speak (outside of the China metals news it was a quiet night).
Today we get several notable economic reports including Retail Sales (E: 1.0%), Industrial Production (E: 1.2%), and Consumer Sentiment (E: 90.3). In general, the stronger the better for these reports but we’ll be watching the inflation expectations component of the Consumer Sentiment Index – if it runs “hot” expect a headwind on stocks. There’s also one Fed speaker, Kaplan (1:00 p.m. ET), but he shouldn’t move markets.