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Today, we’re in a very, very classic ‘bad is good’ reaction to the Flash PMIs

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Today, we’re in a very, very classic ‘bad is good’ reaction to the Flash PMIs: Sevens Report Editor, Tom Essaye, Quoted in Barron’s

Weak Manufacturing Data Is Lifting the Stock Market, Sending Yields Lower

Sevens Report Research’s Tom Essaye told Barron’s that though upbeat earnings reports set a positive tone, the market was gaining after the S&P Global Flash U.S. Composite PMI came in lower than expectations. The US Manufacturing PMI fell to a four-month low of 49.9 in April from 51.9 in March.

“Today, we’re in a very, very classic ‘bad is good’ reaction to the Flash PMIs,” Essaye says. “So now you’re seeing yields off and stocks rebound—so kind of a reverse of what we’ve seen in the last two and a half weeks.”

Essaye says the latest earnings reports are helping, though he doesn’t believe it’s the reason stocks are up across the board.

“I don’t think earnings would cause this rally if the PMIs had been strong, or the price metrics were higher or anything like that,” he says. “But given the soft data, I think that earnings are adding fuel to the fire. And I think that’s a positive for markets.”

Also, click here to view the full Barron’s article published on April 24th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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It’s very early in the quarter, but it’s not off to a great start

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It’s very early in the quarter, but it’s not off to a great start: Sevens Report Editor, Tom Essaye, Quoted in Barron’s

S&P 500 Slides for Sixth Straight Day. Tech Stocks Are Struggling.

Sevens Report Research’s Tom Essaye told Barron’s that traders that have been worried about soaring tech valuations took the first wave of earnings reports as an opportunity to sell.

“It’s very early in the quarter, but it’s not off to a great start,” Essaye says. “And I think that it’s giving people an excuse to lighten up.”

Super Micro Computer shares also sank after investors wondered why the firm didn’t preannounce March quarter results as it has tended to do ahead of strong reports.

As for the broader market, Essaye thinks the S&P 500 was due for a pullback, and could fall further before valuations start looking attractive.

“The problem now is that news isn’t necessarily turning really bad, it’s forcing the market to realize that they were too aggressive in their positive expectations,” Essaye says. “And this is all being unwound.”

Also, click here to view the full Barron’s article published on April 19th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.

As you see people reducing tech exposure, you’re getting the whole gamut being sold

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As you see people reducing tech exposure, you’re getting the whole gamut being sold: Sevens Report Editor, Tom Essaye, Quoted in Barron’s

Why the Dow and Nasdaq Are Going in Different Directions

Sevens Report Research’s Tom Essaye told Barron’s that earnings this week in the tech space haven’t been good. Netflix was the latest nail in the coffin ahead of major big tech players next week.

“As you see people reducing tech exposure, you’re getting the whole gamut being sold,” Essaye says. “And we know that’s really what’s happening, because the Dow is up on the day. And the S&P 500, if you were to pull tech out, wouldn’t be doing that bad.”

Also, click here to view the full Barron’s article published on April 19th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.

A lot of that news has been digested by markets during this pullback

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A lot of that news has been digested by markets during this pullback: Sevens Report Editor, Tom Essaye, Quoted in Barron’s

Dow Closes Flat Ahead of CPI Report

Sevens Report Research’s Tom Essaye told Barron’s that the move seemed to be a bounce after a string of down days, since none of the data out Thursday were particularly upbeat. He points to a hot Philly Fed index, mixed earnings, and hawkish comments from New York Fed President John Williams.

“But, a lot of that news has been digested by markets during this pullback and because it’s nothing new, we’re seeing a bit of a relief rally,” Essaye says. “However, none of today’s headlines solve any of the problems the market has been dealing with so I don’t think this is a bounce that will last, barring a positive surprise on inflation, geo-politics or earnings.”

Also, click here to view the full Barron’s article published on April 18th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.

“Intraday market movement matters,” Tom Essaye says.

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“Intraday market movement matters”: Tom Essaye Quoted in Barron’s

The S&P 500 Keeps Starting Strong But Finishing Down

“That’s not what you want to see because what it tells you is you have a bunch of people who own stocks who are looking for an excuse to sell them,” Sevens Report Research’s Tom Essaye told Barron’s. “And the higher price gives them that excuse early.”

We’re only halfway through the month, so there are plenty of opportunities to top that figure. The most it’s happened in a month going back to 2008 was in December 2012, when it occurred 8 different times.

“Intraday market movement matters,” Essaye says. “The ideal scenario is you open lower and you climb out of the hole. We’re doing the opposite here. … It does speak to further technical weakness, and that’s why I believe we aren’t done yet. We probably need to go a bit lower.”

Also, click here to view the full Barron’s article published on April 16th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.

Over the past two weeks, we’ve seen deterioration on multiple fronts

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Over the past two weeks, we’ve seen deterioration on multiple fronts: Tom Essaye Quoted in Barron’s

Nasdaq Off Lows as Bond Yields Pull Back

Sevens Report Research’s Tom Essaye told Barron’s in a phone interview that markets had a rosy outlook two weeks ago as traders bet on solid growth, stable yields, and hopes of near-term rate cuts.

“Over the past two weeks, we’ve seen deterioration on multiple fronts,” Essaye says. “Yields are now much higher, the Fed is not going to cut nearly as much as expected, and geopolitical risks are now bubbling up again.”

Essaye believes higher yields and worries that the Federal Reserve will turn to fewer rate cuts than expected has been the biggest problem for markets.

“The market was extremely aggressive on valuation, and central to that valuation is the idea of Fed rate cuts and lowered yields,” Essaye says. “Because that has been removed, the valuation for markets must come down. And that’s exactly what’s happening.”

Also, click here to view the full Barron’s article published on April 16th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.

Tom Essaye Quoted in Barron’s on April 9th, 2024.

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Sevens Report Research’s Tom Essaye told Barron’s that with not much on the calendar Tuesday

Dow Closes Flat Ahead of CPI Report

Sevens Report Research’s Tom Essaye told Barron’s that with not much on the calendar Tuesday, traders were looking ahead to Wednesday’s consumer price index report, as well as updates on producer prices and the start of earnings season on Thursday and Friday, respectively.

“The Wednesday-Thursday-Friday of this week has the potential to provide some surprises or, conversely, reinforce what everybody hopes is going to happen,” Essaye says. “I think that what we’re seeing today is people just sort of biding their time, doing a little bit of positioning, making sure their risk tolerance is appropriate as we head into tomorrow’s 8:30 a.m. CPI release.”

Also, click here to view the full Barron’s article published on April 9th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.

The Fed is going to cut at some point—but nobody knows when

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The Fed is going to cut at some point—but nobody knows when: Tom Essaye Quoted in Barron’s

Dow Drops 300 Points as Indexes Turn Down

Traders were looking ahead to Wednesday’s consumer price index. Sevens Report Research’s Tom Essaye says traders seem to be biding their time, making sure their risk tolerance is appropriate heading into the 8:30 a.m. CPI release, especially with not much in the way of economic data or earnings in the meantime.

“We’re at this point where we all know the Fed is going to cut at some point—but nobody knows when—and it’s all going to be up to the data,” he says. “And there’s really not a lot else to focus on. So we’re all just sort of lurched from one data point to the other in this market right now. This is the way it gets when you get to long drawn out transitions in policy.”

Also, click here to view the full Barron’s article published on April 9th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.

The key for the ISM manufacturing survey is stability

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The key for the ISM manufacturing survey is stability: Tom Essaye Quoted in Barron’s

Stock Futures Point to Record Highs as Investors Mull Cuts to Interest Rates

“The key for the ISM manufacturing survey is stability. An in-line or better than expected result will further reinforce that growth is resilient and likely support the early rally,” said Tom Essaye, founder of Sevens Report Research.

Also, click here to view the full Barron’s article published on April 1st, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.

Any surprises could move yields and impact equities

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Any surprises could move yields and impact equities: Tom Essaye Quoted in Barron’s

The Market Kicks Off the Day in the Green

“There are no Fed officials scheduled to speak today but there is a 5-Yr Treasury Note auction at 1:00 p.m. ET,” wrote Sevens Report Research’s Tom Essaye. “With the elevated level of market anxiety surrounding Friday’s Core PCE release (when markets will be closed) any surprises via strong or weak demand in the auction could move yields and impact equities.”

Also, click here to view the full Barron’s article published on March 26th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to RallyIf you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

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.