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Two Analogies to Explain Tariffs to Clients

What’s in Today’s Report:

  • Two Analogies to Explain Tariffs to Clients
  • Weekly Market Preview:  How Does Iran Respond? (And Does That Increase Worries About the Conflict Spreading?)
  • Weekly Economic Cheat Sheet:  More Important Growth Data This Week

Futures are slightly higher despite an increase in geopolitical tensions over the weekend.

The U.S. attacked and destroyed three Iranian nuclear facilities over the weekend. But, despite ominous headlines, we are not seeing an increase in oil prices or geopolitical tensions in the markets as fears of the conflict spreading remain low.

Today focus will remain on geopolitics and specifically how Iran responds to the direct U.S. attack.  Despite the headlines about this event, from a market standpoint, unless investors fear the conflict will spread and engulf the entire region and dramatically reduce oil supplies, then rising geopolitical tensions won’t be a material negative on this market.

Economically, there are two notable reports today: Flash Manufacturing PMI (E: 51.1) and the Flash Services PMI (E: 52.9) and markets will want to see stability in both to push back on slowdown fears. On the Fed front, there are multiple speakers today including Bowman (10:00 a.m. ET), Goolsbee (1:10 p.m. ET), Kugler & Williams (2:30 p.m. ET). But, with Powell’s testimony before Congress starting tomorrow, these speakers shouldn’t move markets.

FOMC Technical Preview

What’s in Today’s Report:

  • FOMC Technical Preview
  • Retail Sales Data Takeaways – Signs of Weakness in Consumer Spending

Futures are higher as investors continue to monitor the geopolitical tensions in the Middle East and digest largely as expected European inflation data ahead of the Fed.

Economically, Eurozone HICP fell to 1.9% from 2.2%, as expected, while UK CPI edged down to 3.4% vs. (E) 3.5% which is supporting a bid in the global bond market with yields falling moderately in premarket trade.

Today, there are two economic reports to watch: Jobless Claims (E: 244K) which come a day early, and Housing Starts and Permits (E: 1.360M, 1.430M). Another sharp rise in jobless claims could bolster concerns about the health of the labor market but a big reaction from markets is unlikely given the looming Fed decision.

Speaking of which, the primary focus of today’s session will be the FOMC Announcement (2:00 p.m. ET) and Fed Chair Powell’s press conference (2:30 p.m. ET) as investors look for clarity on the future path of monetary policy.

There are two late season earnings releases to watch as well: ACB ($0.11) and KFY  ($1.25) but with the Fed in focus, neither should materially move markets today.

FOMC Meeting Preview

What’s in Today’s Report:

  • FOMC Preview
  • Empire State Manufacturing Survey Takeaways

Futures are lower amid an elevated sense of market uncertainty after President Trump left the G-7 summit early as tensions between Israel and Iran remain elevated.

Economically, Economic Sentiment within the latest German ZEW Survey rose from 25.2 to 47.5 vs. (E) 31.3, however European stocks are trading with a heavy tone amid the elevated geopolitical tensions in the Middle East.

Today, there are several noteworthy economic reports to watch including: Retail Sales (E: -0.6%), Import & Export Prices (E: -0.3%, -0.1%),  Industrial Production (E: 0.1%), Business Inventories (E: 0.0%), and the Housing Market Index (E: 36).

Beyond the economic data, the June FOMC meeting gets underway today which should prompt a sense of “Fed paralysis” as investors await clarity on the future path of monetary policy.

Finally, there are two late-season earnings releases to watch: JBL ($2.15) and LZB ($0.93) but neither should move the broad markets as focus shifts to the Fed decision.

Why Are Markets Ignoring Scary Headlines?

What’s in Today’s Report:

  • Why Are Markets Ignoring Scary Headlines?
  • Weekly Market Preview: Does the Fed Signal Rate Cuts Ahead?
  • Weekly Economic Cheat Sheet: Is Consumer Spending Losing Momentum?

Futures are modestly higher as geopolitical risks didn’t rise substantially over the weekend while Chinese economic data was stronger than expected.

Geopolitically, the Israel/Iran conflict escalated as the two countries exchanged attacks over the weekend, but there are no signs it’s spiraling into a broader regional conflict and that’s keeping geopolitical concerns anchored.

Economically, Chinese retail sales rose 6.4% y/y vs. (E) 4.9%, pushing back on concerns of a dramatic slowdown.

Today focus will remain on geo-political headlines but as long as the conflict stays limited between Israel and Iran, it’s unlikely to materially impact the markets.  Outside of geopolitics, the notable report today is the June Empire Manufacturing Survey (-7.3) and markets will want to see stable data and declining prices (further pushing back on stagflation fears).

Reset the trade relationship back to where it was

Reset the trade relationship back to where it was: Tom Essaye Quoted in Barron’s


Netflix and 6 More Winning Stocks to Sell Now

The White House now says that trade negotiations with China are over, even though the latest agreement from London “did little other than to reset the trade relationship back to where it was following the Geneva talks and, importantly, didn’t result in any further tariff reduction,” notes Sevens Report President Tom Essaye.

That means consumers will face at least 30% tariffs on Chinese imports and additional 25% on select goods and “according to the administration, they are going to stay there in perpetuity,” he notes. “Yes, ultimately Chinese tariffs were lower compared to the 145% absurdity in early April. But, they are much, much higher than at the start of the year.”

Also, click here to view the full article featured on Barron’s published on June 13th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.


If 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.

What is the Shadow Fed?

What’s in Today’s Report:

  • What is the Shadow Fed?

Futures are modestly lower as geopolitical concerns offset more strong tech earnings.

Geo-politically, multiple news outlets reported that Israel is preparing for a strike on Iranian nuclear facilities, which is boosting gold prices and weighing on global markets.

Oracle (ORCL) beat earnings on continued robust demand for AI infrastructure (the stock is up 7% pre-market).

Today focus will be on economic data via Jobless Claims (E: 243K) and PPI (E: 0.2% m/m, 2.6% y/y).  Claims have ticked higher in the last few weeks and if that continues, it will slightly increase economic anxiety and (slightly) pressure stocks.  On inflation, PPI is viewed as a loose leading indicator of CPI so if PPI can remain subdued, it’ll boost confidence inflation remains under control.

Finally, notable tech earnings continue today with ADBE ($4.01).

Any materially positive or negative trade-talk headlines could meaningfully move markets

Any materially positive or negative trade-talk headlines could meaningfully move markets: Sevens Report Founder, Tom Essaye Quoted in Swissinfo.ch


S&P 500 Gains as Lutnick Signals US-China Progress

“Any materially positive or negative trade-talk headlines out of London, where US and Chinese negotiations remain underway, could meaningfully move markets,” said Tom Essaye at The Sevens Report.

Also, click here to view the full article, published on June 10th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.


If 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.

June MMT Chart

What’s in Today’s Report:

  • June MMT Chart

Stock futures are modestly lower this morning as the “framework agreement” from the U.S.-China trade talks is digested ahead of today’s critical U.S. CPI report.

Economically, Japanese CPI favorably fell from 4.1% in April to just 3.2% in May, below estimates of 3.5%.

Today, focus will be on the latest U.S. inflation data with CPI (E: 0.2% m/m, 2.5% y/y) and Core CPI (E: 0.3% m/m, 2.9% y/y) figures due to be released before the open.

There are no other economic reports today and no Fed officials are scheduled to speak which leaves a 4-Month Treasury Bill auction at 11:30 a.m. ET and a 10-Yr Treasury Note auction at 1:00 p.m. ET as the only other notable market catalysts on the calendar today.

Finally, two late season earnings releases that could move markets after the close include: CHWY ($0.16), ORCL ($1.30).

Halfway to a Soft Landing?

What’s in Today’s Report:

  • Halfway to a Soft Landing?
  • Weekly Market Preview:  Does Trade Progress Actually Occur? (Where Are the Trade Deals?)
  • Weekly Economic Cheat Sheet:  Focus on Inflation (The Lower, the Better)

Futures are flat following a mostly quiet weekend as investors await the results of the latest U.S./China trade talks.

A meeting between U.S. and Chinese trade officials in London should end shortly and markets are waiting for the results (the meeting could see more on Chinese efforts to curb fentanyl shipments to the U.S.).

Economically, Chinese exports missed expectations (4.8% y/y vs. (E) 6.0%) underscoring economic headwinds.

Today focus remain on trade and any positive (or negative) headlines from the U.S./China meeting in London will move markets.  Outside of trade, focus will be on the N.Y. Fed 1-Year Consumer Inflation Expectations (E: 3.6%).  These have cooled lately as the trade war has de-escalated and further cooling would be a positive for markets.

What Is the “TACO Trade?”

What’s in Today’s Report:

  • The “TACO Trade” and Why It Matters to You
  • Durable Goods Orders Show Cracks Emerging in Business Spending
  • Consumer Confidence Rebounds – Chart

Equity markets initially traded with a risk-off tone overnight thanks to a rise in global bond yields on the back of a soft Japanese government debt auction, but futures are back to flat ahead of the Fed minutes this afternoon and NVDA earnings after the close.

There is one lesser followed economic report today: Richmond Fed Manufacturing Index (E: -9.0), but barring a major surprise, the releasee is unlikely to materially move markets given other catalyst in focus.

One of those catalysts will be the Fed minutes release this afternoon at 2:00 p.m. ET as traders will look for any fresh insight as to when the next rate cut will occur or clarity on the FOMC’s outlook for the economy/inflation in the quarters ahead.

As mentioned, a soft JGB auction overnight weighed on global risk assets. As such, today’s Treasury auctions, the first for 4-Month Bills at 11:30 a.m. ET and the second for 5-Yr Notes at 1:00 p.m. ET both have potential to impact equity trading today (recall it was a 20-Yr auction that sparked last week’s mid-week selloff).

Finally, one of the last major earnings releases of the season will hit after the close with NVDA (E: $0.80) reporting post-market. A few other noteworthy late-season reports today include:  DKS ($3.37), ANF ($1.36), M ($0.14), CRM ($1.87), and ELF ($0.57).