“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.
Tom Essaye interviewed with Ben Lichtenstein from TD Ameritrade Network, discussing EV companies, TSLA, NIO, NKLA, semiconductor industries & more. Click here to watch the full interview.
What’s in Today’s Report:
Futures are modestly lower this morning as yesterday’s record highs are digested while more positive vaccine news is being offset by yesterday’s mixed stimulus headlines.
News broke overnight that the U.K. approved Pfizer’s COVID-19 vaccine for emergency use as early as next week, although the market reaction was limited as vaccine hopes are already largely priced in with stocks at or near records.
Economic data was mostly upbeat overnight with German Retail Sales and Eurozone Unemployment both beating estimates however the stimulus stalemate continues to weigh on the global growth outlook right now.
Today, there are two economic reports to watch as the ADP Employment Report (E: 420K) kicks off jobs week while Motor Vehicle Sales (E: 16.1M) will be released later in the morning.
There are multiple Fed speakers today including: Quarles (9:00 a.m. ET), Williams (9:00 a.m. ET & 1:00 p.m. ET), and Powell (10:00 a.m. ET) with the bulk of the focus remaining on the Fed chair’s second day of testimony before Congress.
Bottom line, investors are focused on stimulus right now, underscored by the fact that there was not a more pronounced reaction to the Pfizer vaccine approval news overnight, so until we gain more clarity on the size and scope of the next coronavirus aid package, it may be difficult for stocks to continue to grind to new record highs in the very near term.
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.
What’s in Today’s Report:
Equity futures are broadly higher as this week’s positive vaccine news and strong PMI data spur optimism for continued growth as we start the final month of the year.
November Manufacturing PMIs across Asia and Europe largely topped estimates overnight suggesting economic growth is continuing to firm despite the lack of stimulus.
Looking into today’s session, traders will look for a continued trend of better than expected economic data in the two notable reports due to be released: ISM Manufacturing Index (E: 57.5) and Construction Spending (E: 0.8%) as underwhelming data will rekindle fears that the recovery is losing steam, especially in the U.S. where coronavirus statistics are concerningly elevated.
There are also several Fed speakers today: Powell (10:00 a.m. ET), Brainard (11:00 a.m. ET), Daly (1:15 p.m. ET), and Evans (3:00 p.m. ET) however the focus will clearly be on Chair Powell’s Congressional testimony, alongside Treasury Secretary Mnuchin, regarding the CARES Act as investors assess the outlook for more stimulus in the months ahead.
What’s in Today’s Report:
Futures are modestly lower following a quiet weekend as markets digest last week’s rally.
Chinese November PMIs were solid (manufacturing PMI 52.1 vs. (E) 51.5 and Services PMI 56.4 vs. (E) 56.2) implying the economic recovery is on going, which is a general positive for global growth.
Coronavirus cases and the amount/intensity of lockdowns appear to be leveling off in the near term, although at very elevated and stringent levels (and there are fears of a post-Thanksgiving spike in infections over the coming weeks).
Today there is just one economic report, Pending Home Sales (E: 2.0%) and no Fed speakers, so we can expect markets to focus on any headlines regarding the two key macro variables: Stimulus (when and how much?) and Lockdowns (will there be more?).
“Negative COVID headlines/increased economic lockdowns (especially in NYC and LA County) are starting to offset vaccine optimism, and…” wrote Tom Essaye, founder of The Sevens Report. Click here to read the full article.
“Negative COVID headlines/increased economic lockdowns (especially in NYC and LA County) are starting to offset vaccine optimism…” wrote Tom Essaye, founder of The Sevens Report. Click here to read the full article.
What’s in Today’s Report:
Stock futures have pulled back from overnight highs as yesterday’s run to fresh record levels is digested amid concerning coronavirus trends and fading vaccine optimism.
COVID-19 related hospitalizations reportedly hit a new high for the 15th consecutive day yesterday while deaths spiked to the highest level since May, rekindling concerns that more lockdowns may be implemented.
Today’s economic calendar is very busy with several notable and potentially market moving reports due to be released including: Durable Goods Orders (E: 0.9%), Q3 GDP (33.1%), Jobless Claims (E: 730K), New Home Sales (E: 970K), Consumer Sentiment (E: 77.7), and the Core PCE Price Index (E: 1.4%).
Beyond the morning data dump, there are no Fed speakers but the most recent FOMC Meeting Minutes will print at 2:00 p.m. ET and any hawkish hints in the release could weigh on this seemingly tentative run to new records, especially given thin volumes and low attendance this week.
Finally, additional negative news regarding the second wave of the coronavirus outbreak, including new or extended lockdown measures, could trigger more profit taking into the Thanksgiving holiday.
“Negative Covid headlines/increased economic lockdowns (especially in NYC and LA County) are starting to offset vaccine optimism, and that’s…” Tom Essaye, founder of The Sevens Report, said. Click here to read the full article.
