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Market Multiple Table: August Update

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What’s in Today’s Report:

  • Market Multiple Table: August Update

Futures are rallying on optimistic comments from Secretary Mnuchin about a new stimulus deal being reached by the end of the week as well as upbeat economic data.

Composite PMIs were mostly in line with expectations overnight but EU Retail Sales notably rose 1.3% vs. (E) 0.2% Y/Y in June, a recovery to pre-pandemic levels that is rekindling hopes for a V-shaped economic recovery.

This morning, investor focus will be on economic data early as we get the first look at July jobs data via the ADP Employment Report (E: 1.888M) ahead of the bell while International Trade (E: -$50.3B) and the ISM Non-Manufacturing Index (E: 55.0) will both be released after the open.

Earnings season is still in full swing as well with several companies due to report Q2 results today including: CVS ($1.93), MRNA (-$0.36), HUM ($10.34), ROKU (-$0.55), MET ($0.96), ADT ($0.27).

Beyond economic data and earnings, the market’s main focus is clearly the stimulus bill and any news of further progress will be a tailwind for stocks while any new “roadblocks” will likely trigger some risk-off money flows across asset classes.

Tom Essaye on Yahoo Finance on July 16, 2019

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“Looking at this earnings season, the key question is: Will trade uncertainty cause businesses to pullback on spending and…” said Tom Essaye, founder of the Sevens Report, in a note. Click here to read the full Yahoo Finance article.

Stock Trading Floor

Tom Essaye Quoted in MarketWatch on April 17, 2019

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What is the health-care sector doing these days. Tom Essaye quoted in MarketWatch on April 17, 2019. He talks about this topic, earnings season and more. Read the full article here.

Tom Essaye Quoted on Market Watch on April 12, 2019

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Tom Essaye quoted in MarketWatch to share his view on earnings season. “Bottom line, this earnings season is make or break for this market, because we need earnings growth to resume if the S&P 500 is going to…” Click here to read the full article.

Earnings Season Preview (Market or Break for the Bull Market)

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What’s in Today’s Report:

  • Earnings Season Preview:  Two Important Factors

Futures are slightly lower despite generally good news overnight, as markets continue to digest the recent rally.

The U.S. & China announced the next round of trade talks will occur Jan 30/31 in Washington, which is a mild positive (although it was largely expected and mostly priced in).

Economically, data was mixed Japanese Household Spending rose 1.1% vs. (E) 0.2%, while UK Industrial Production dropped –0.3% vs. (E) 0.4%.

Today is all about the CPI  report (E: -0.1% m/m, 1.9% y/y).  Both the headline and core need to stay around 2.0% yoy for this “dovish” Fed narrative to continue to grow, as a hot CPI report could undo some of the rally markets have enjoyed since last Friday.