Tom Essaye, Sevens Report Research Founder and President, joins Yahoo Finance Live to discuss the market reaction to earnings season thus far, outlook on inflation… Click here to see the full interview.
What’s in Today’s Report:
Stock futures are little changed this morning as investors digest recent gains and await more important earnings results.
On the inflation front, German PPI ran hot (2.3% vs. E: 1.0%), but EU HICP (their CPI) met estimates of 0.5% which is helping ease some price related concerns this morning (yields are off the overnight highs).
Looking into today’s session, there are no notable economic reports but multiple Fed speakers including: Bostic (12:00 p.m. ET), Kashkari (12:00 p.m. ET), Evans (12:00 p.m. ET), Quarles (1:00 p.m. ET), Bullard (1:45 p.m. ET), and Daly (8:35 p.m. ET).
Looking to earnings, focus will be on: VZ ($1.36), WGO ($1.98), and ABT ($0.92) reporting pre-market and then TSLA ($1.49), IBM ($2.49), PPG ($1.56), and DFS ($3.38) releasing results after the close.
What’s in Today’s Report:
U.S. stock futures are pointing to a higher open today as bond markets remain largely steady and investors continue to focus on the solid start to Q3 earnings season.
There were no notable economic reports or market-moving headlines overnight.
Looking into today’s session, there is one economic report to watch: Housing Starts (E: 1.621M) and several Fed officials are scheduled to speak: Daly (8:00 a.m. ET), Harker (8:50 a.m. ET), and Bostic (1:00 p.m. & 2:50 p.m. ET). But as long as there are no major, hawkish shifts in tone by the Fed speakers, the market impact should be limited with the focus increasingly on earnings.
On the earnings front, we will get results from JNJ ($2.37), PG ($1.59), BK ($1.02), TRV ($2.04), SYF ($1.43) ahead of the bell, and then NFLX ($2.56), and UAL (-$1.65) after the close. The important thing investors will be looking for is any new insight on the impact of inflation and margin compression on earnings and importantly forward guidance.
What’s in Today’s Report:
Futures are modestly higher mostly on momentum from Thursday’s earnings-driven rally.
Alcoa (AA) was the only notable earnings report overnight but like most reports on Thursday, it beat estimates. While it’s very, very early in earnings season, so far the results are better than feared and that’s driving the rally.
Today is another busy day of economic data, Fed speak, and earnings. Economically, the three key reports are Retail Sales (E: -0.1%), Empire State Manufacturing Index (E: 25.0), and Consumer Sentiment (E: 74.0). Markets will want to see stability in the first two, and the focus will be on inflation expectations in the third (they need to stay close to last month’s readings).
On the earnings front, we have three notable reports today: GS ($9.78), PNC ($3.64), JBHT ($1.77), and we also get two Fed speakers, Bullard (11:45 a.m. ET) and Williams (12:20 p.m. ET), with the latter being the more important of the two.
What’s in Today’s Report:
Futures are modestly lower on a resumption of the commodity rally following an otherwise quiet weekend.
Energy prices (oil, natural gas, coal) are all rallying again (up 2% – 3%) and that’s increasing global inflation anxiety, which is weighing moderately on futures.
Global bond yields are also rising as two hawkish Bank of England members warned of a possible rate hike this year, although that is not the consensus expectation (although a rate hike from the BOE in early 2022 is looking more likely).
Today is Columbus Day and the U.S. bond markets are closed and there are no economic reports today, although there is one Fed speaker: Evans (6:00 p.m. ET). So, commodity prices are Treasury yields should drive trading today. The more they rise, the stronger the headwind on stocks will become.
How the Fed tapers is the next major variable for this market…wrote Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter. Click here to read the full article.
At the end of the day, the stock market is driven by two things: 1) Earnings and…Tom Essaye, founder of Sevens Report, said in a note. Click here to read the full article.
On the earnings front, most of the systemically important companies are behind…wrote Tom Essaye in a recent memo. Click here to read the full article.
Stock futures are rebounding following yesterday’s losses as positive earnings help offset…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Stock futures are little changed this morning after a quiet night of news as markets look ahead to key economic data in the U.S. and the latest commentary from Fed leadership.
Economically, Composite PMI data overseas largely met estimates and therefore did not materially impact markets.
Looking into today’s session, focus will be on the ADP Employment Report (E: 715K) which is due out at 8:15 a.m. ET as investors look for the latest insights to U.S. labor market trends (important for Fed policy) and then the ISM Services Index (E: 60.4) which will hit shortly after the open (important regarding the health of the broader economic recovery).
Attention will then turn to Fed Vice Chair Clarida’s speech at 10:00 a.m. ET in which the market will be looking for further reiteration that the labor market has a ways to go before any policy changes will occur (so basically just repeating Powell’s recent comments). Any hawkish surprises could result in a spike in yields and pullback in stocks as policy expectations are very dovish right now.
Finally, earnings season continues with: CVS ($2.07), GM ($1.89), RCL (-$4.26), and KHC ($6.54) reporting before the bell while ROKU ($0.13), UBER (-$0.53), and EA ($1.28) will release Q2 results after the close.
