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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.

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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.

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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.

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Tom Essaye interviewed by Barron’s

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 Durable-goods number showed stable growth: Tom Essaye Interviewed by Barron’s

Market’s Spirit Isn’t Dampened by Mixed Economic Data

In an interview with Barron’s, Tom Essaye of Sevens Report Research said the durable-goods number showed stable growth while the consumer confidence reading was light.

“Every time the market is reminded that we’ve got stable growth, still falling inflation, a looming rate cut —which was reinforced last week—and positive AI headlines, the default reaction is to rally. And rightly so. And that’s exactly what’s happening today,” he said.

Essaye also called the collapse of Baltimore’s Francis Scott Key Bridge a “tremendous tragedy”and thinks the disaster could trickle into economic reports at a time when the Federal Reserve is watching all numbers closely.

“This is going to cloud some of the economic data, potentially, which has some risk associated with it because the data is really important right now,” Essaye said. “It will probably send some noisiness into the data. We’re just going to have to look through that as best we can over the next couple of months. That’s something to pay attention to.”

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.

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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.

Growth is holding up, and that’s the key

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Growth is holding up, and that’s the key: Tom Essaye Quoted in Barron’s

S&P 500 Marks Record Close. Tech Stocks Rebound.

Sevens Report Research’s Tom Essaye told Barron’s that markets can rally higher on developments in the artificial intelligence world and signs of continued economic growth, even in the face of diminished hopes for imminent rate cuts.

“Growth is holding up, and that’s the key,” Essaye says. “It’s when growth begins to roll over that rate cuts really matter. And we’re not there yet. We’re getting hints of it. But we’re not there yet.”

Also, click here to view the full Barron’s article published on March 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.

The major question for tomorrow’s meeting is what do the dots say?

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The major question for tomorrow’s meeting: two or three rate hikes? Tom Essaye Quoted in Barron’s

Dow Turns Higher. Tech Stocks Pull Back.

“I think what we’re seeing today is just a little bit of hedging by investors,” Sevens Report Research’s Essaye told Barron’s in a phone interview.

Essaye says that ahead of the Fed meeting, traders may be looking at defensive stocks on the chance that the Federal Open Market Committee’s March meeting sends stocks lower or pushes yields lower.

“The major question for tomorrow’s meeting is what do the dots say: two or three rate hikes?” Essaye says. “That’s really gonna determine how the market reacts to this meeting.”

“AI enthusiasm has been a major factor in this rally, and as long as nothing else is particularly negative, AI enthusiasm can continue to push markets higher,” Essaye says. “That’s what happened yesterday. Today, we don’t have that sort of new shiny object in AI to focus on, and we have the Fed decision tomorrow.”

Also, click here to view the full Barron’s article published on March 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.

The March FOMC meeting begins today

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The March FOMC meeting begins today: Tom Essaye Quoted in Barron’s

Stocks Open Lower Ahead of Fed Meeting

The FOMC’s March meeting kicks off on Tuesday. While a rate cut has been ruled out by traders, they will pay close attention to Federal Reserve Chair Jerome Powell’s press conference on Wednesday.

“The March FOMC meeting begins today and barring any material ‘tape bombs’ the markets should fall into a familiar positioning churn ahead of tomorrow’s policy announcement and Powell’s press conference,” writes Sevens Report Research’s Tom Essaye.

Also, click here to view the full Barron’s article published on March 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.

The key is growth, it’s not rate cuts

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The key is growth, it’s not rate cuts: Tom Essaye Quoted in Barron’s

S&P 500 Edges Higher. Tech Still Lags.

Stocks have been holding up in recent weeks even though expectations for a rate cut sooner rather than later have dipped.

“The key is growth, it’s not rate cuts,” Sevens Report Research’s Tom Essaye told Barron’s. “As long as growth is stable, the markets can tolerate fewer rate cuts—up to a certain point.”

Also, click here to view the full Barron’s article published on March 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.

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Easing growth concerns surrounding the world’s second largest economy

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Easing growth concerns surrounding the world’s second largest economy: Tom Essaye Quoted in Barron’s

Asian Stocks Gain Amid Positive Chinese Data, Bank of Japan Expectations

“Chinese retail sales rose 5.5% [versus expectations of 5.2%] and industrial output jumped 7% [versus expectations of 5%] to start 2024, easing some growth concerns surrounding the world’s second largest economy, however property sector woes persist,” said Tom Essaye, the founder of Sevens Report Research.

Also, click here to view the full Barron’s article published on March 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.

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Retail Sales Is The Next Big Number

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This will be a potentially busy week of catalysts: Tom Essaye Quoted in Barron’s

S&P 500 Notches Record Close as Stocks Rally

Retail sales and producer price inflation later this week could serve as the next major test for stocks, as traders continue to hope interest rate cuts will begin in the second half of the year.

“Retail sales is the next big number and then we’ll go from there,” Sevens Report Research’s Tom Essaye told Barron’s. “But for now, the script is still in place. The issue markets have is that it’s already also priced in, so we need to find the next news catalyst.”

Also, click here to view the full Barron’s article published on March 13th, 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.

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