Posts

Why Tech Is Driving This Selloff

/in , /by

Why Tech Is Driving This Selloff: Start a free trial of The Sevens Report.

What’s in Today’s Report:

  • Why Tech Is Driving This Selloff
  • S&P 500 Weekly Chart: Not A Setup You Want To See

Futures are moderately higher on solid tech earnings and optimism there won’t be a government shutdown drama.

On earnings, AMZN and INTC both posted solid numbers (up 6% and 7% after hours respectively). And that’s helping the tech sector and broader market bounce.

Politically, Speaker Johnson publicly supported passing a short term spending bill. This possibly avoids another shutdown drama.

Today focus will be on inflation, namely the Core PCE Price Index (E: 0.3% m/m, 3.7% y/y) and the five-year University of Michigan Inflation Expectations (E: 3.0%).  Lower than expected numbers will remind markets that inflation is falling and depress Treasury yields, and that should extend today’s early rally.  Conversely, if the inflation data is higher than expected, don’t be shocked if these early gains are erased as yields rise.

Why Tech Is Driving This Selloff

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here. 

Jobs Day

/in , /by

What’s in Today’s Report:

  • Jobs Report Preview (Abbreviated Version)

Futures are slightly higher thanks to good AMZN earnings and solid EU economic data.

AMZN and AAPL, the last two big earnings reports for Q2, were mixed but generally fine. AMZN posted strong results (stock up 8%) while AAPL’s numbers were slightly underwhelming, but nothing terrible (stock down 1%).

Economically, EU data was solid as German Manufacturers’ Orders and EU Retail Sales beat estimates.

Today focus will be on the jobs report and estimates are as follows:  Job Adds, 200k.  Unemployment Rate, 3.6%.  Wages, 0.3% m/m, 4.2% y/y.  The key for markets today is the reaction of the 10-year yield to the jobs report.  If the jobs report is “Too Hot” then 10-year Treasury yield will rise and it’ll likely pressure stocks.  Conversely, if we get a Goldilocks number, then the 10-year yield should fall modestly and stocks can extend this early rally.