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Fed Takeaways and Jobs Report Preview

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What’s in Today’s Report:

  • What the Fed Decision Means for Markets
  • FOMC Takeaways
  • Jobs Report Preview
  • Weekly EIA Data Takeaways and Oil Market Update

Futures are solidly higher as traders digest the largely benign July Fed decision amidst solid earnings and guidance from tech giants MSFT and META, which are trading higher by 8%+ and 12%+ in pre-market trade, respectively.

Today, focus will be on more key economic data early with Jobless Claims (E: 225K), and the Core PCE Price Index (E: 0.3% m/m, 2.7% y/y) being the key numbers to watch while the monthly Chicago PMI (E: 42.0) will also be released.

In the wake of the Fed decision yesterday, the Treasury’s 4-Week & 8-Week T-Bill auctions at 11:30 a.m. ET today could shed some light on market expectations for Fed policy rates between now and the end of the third quarter (the more dovish, the better).

Finally, earnings season continues in full force with multiple major global corporations reporting Q2 results today including CVS ($1.47), ABBV ($2.89), MA ($4.05), AAPL ($1.42), AMZN ($1.33), MSTR ($-0.12), COIN ($1.18), KKR ($1.03), and SO ($0.93). Strong mega-cap tech earnings have become largely expected rather than appreciated by this market so any disappointment in corporate news could spark a wave of profit taking into the end of the month.

 

FOMC Preview: Wildcard to Watch

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What’s in Today’s Report:

  • FOMC Preview: What’s Expected, Hawkish Scenario, Dovish Scenario
  • Fed Meeting Wildcard to Watch: Dovish Dissents

U.S. equity futures are tracking European shares higher this morning amid continued optimism surrounding the U.S.-EU trade deal and resilient earnings ahead of the Fed decision.

There were no noteworthy economic reports overnight which will leave focus on earnings and U.S. economic data today as the July Fed meeting gets underway in Washington.

Today’s economic calendar is a fairly busy one with several potential market-moving reports due to be released including: Consumer Confidence (E: 95.8), JOLTS (E: 7.4 million), Case-Shiller Home Price Index (E: 2.9%), and International Trade in Goods (E: $-99.0B).

Looking at earnings, the Q2 reporting season continues with notable companies releasing results today including: UNH ($4.84), SOFI ($0.06), BA ($-1.54), PG ($1.43), V ($2.86), MRK ($2.01), SBUX ($0.64).

Bottom line, investors will continue to look for resilient, yet not “too hot” economic data trends and upbeat earnings and guidance in order for stocks to hold yesterday’s record highs, however a familiar sense of “Fed Paralysis” is likely to grip markets ahead of tomorrow’s critical Fed decision.

 

What Trump vs. Powell Means for Markets (Three Scenarios)

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What’s in Today’s Report:

  • What the Trump vs. Powell Tensions Mean for Markets
  • EIA Data Takeaways and Oil Market Update

Futures are slightly higher after a mostly quiet newswires night of news as tech shares catch a bid on the back of solid earnings and optimistic guidance from global chip-making giant TSMC overnight.

Economically, Eurozone HICP (their CPI equivalent) met estimates at 2.0% y/y on the headline while the core figure edged up to 2.3%, also as expected.

Today, focus will be on economic data early with Jobless Claims (E: 233K), Retail Sales (E: 0.1%), the Philly Fed Surve (E: -0.4), Import and Export Prices (E: 0.2% m/m, -0.1% m/m), and the latest Housing Market Index (E: 33) all due to be released.

There are also multiple Fed officials scheduled to speak today including: Kugler (10:00 a.m. ET), Daly (12:45 p.m. ET), and Cook (1:30 p.m. ET).

Finally, earnings season continues with TSM ($2.37), GE ($1.43), PEP ($2.03), USB ($1.07), ABT ($1.25), NFLX ($7.07), and IBKR ($0.45) all scheduled to release quarterly reports today.

Bottom line, traders will want to see economic data that pushes back on the ideas of stagflation or a hard-landing (two economic worries of late) and hear a more dovish tone from Fed speakers amid more positive earnings news in order for stocks to extend the recent rally to new records.

ASX Nears Record Although U.S. Tariff Uncertainty Clouds Global Outlook

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Tom Essaye warns Fed may delay cuts until trade policy stabilizes

ASX on track to break record; big miners jump

AUSTRALIAN MINERS SURGE WHILE U.S. POLICY RISKS SIMMER

The ASX is on track to hit a new record as mining stocks jump, but U.S. trade and rate policy remain a source of global market concern.

According to Tom Essaye, author of the Sevens Report, Trump’s unpredictable tariff strategy could force the Fed to delay a rate cut beyond September.

“There’s zero chance we’ll have tariff clarity by August 1, which makes a July rate cut impossible.”
— Tom Essaye, Sevens Report

Even if Trump sticks to the current deadline, Essaye warns, markets expect a delay, which pushes rate decisions further into the year.

“The Fed will want to wait a few months to see what impact these new tariff rates have on the economy.”

Essaye also noted a potential political backlash if higher-for-longer rates persist, which could escalate tensions between Trump and Fed Chair Powell.

Also, click here to view the full article featured on Indopremier.com published on July 11th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Stocks Hit Highs as Airlines Lead But Tariff Delays Threaten Outlook

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Tom Essaye warns delayed trade policy could derail rate cut expectations

U.S. Stocks Reach New Highs as Airlines Soar, Trade Tensions Persist

TRADE POLICY CLOUDS THE OUTLOOK DESPITE STOCK GAINS

U.S. stocks reached new highs Thursday, boosted by a rally in airline shares, but analysts are sounding caution as tariff uncertainty lingers.

Tom Essaye, founder of The Sevens Report, warned that fluctuating trade policies are likely to impact Fed decisions in the coming months.

“The likelihood of a clear tariff policy before August 1 is zero… which means a July rate cut is off the table.”
— Tom Essaye, Sevens Report

Essaye emphasized that continued delays in trade clarity reduce the odds of a September cut and increase the risk of a longer high-rate environment.

“That raises the risk of economic slowdown.”

Despite bullish price action, underlying policy risks remain unresolved, keeping markets exposed to macro-driven pullbacks.

Also, click here to view the full article featured on AInvest.com published on July 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

Market Outlook: Positive News, but Investor Complacency is Surging

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What’s in Today’s Report:

  • Market Outlook: Positive News, but Investor Complacency is Surging
  • Weekly Market Preview: Tariff Updates – Is TACO Still Valid?
  • Weekly Economic Cheat Sheet: More Focus on the Labor Market This Week

Futures are moderately lower on an increase in trade anxiety as the July 9th reciprocal tariff deadline approaches.

President Trump threatened a 10% tariff for any countries that align with “anti-American” BRIC policies and that is reminding investors of ever-present trade tensions.

On reciprocal tariffs, Secretary Bessent said tariff rates won’t increase until August 1st but several countries would be notified of higher tariff rates this week.

Economically, UK retail sales & German IP beat estimates.

Today there are no economic reports nor any Fed speakers so focus will be on trade headlines.  Any reports of any more trade “deals” ahead of the July 9th deadline will be a positive for markets and help stocks recoup these early losses.

 

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FOMC Technical Preview

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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

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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.

Hard Landing/Soft Landing Scoreboard: May Update

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What’s in Today’s Report:

  • Hard Landing/Soft Landing Scoreboard: Hard Data Still (Mostly) Hanging in There
  • ISM Manufacturing Index Takeaways

Futures sold off overnight as a notably weak Chinese factory report offset a favorably cooler-than-anticipated EU CPI print.

China’s May Manufacturing PMI fell to 48.3 vs. (E) 50.7 while EU Core CPI encouragingly fell from 2.7% to 2.3% vs. (E) 2.5% last month.

Looking ahead to today’s session, there are a few noteworthy economic reports including Motor Vehicle Sales (E: 16.4M), Factory Orders (E: -3.0%),  and JOLTS (E: 7.1 million). The market could be particularly sensitive to a soft Job Openings print as a drop below 7 million could stoke worries about the health of the labor market ahead of Friday’s May jobs report.

Additionally, there are a handful of Fed speakers but unless any of them deviate from the “wait-and-see” narrative of late, their market impact should be limited. Speakers today include Goolsbee (12:45 p.m. ET), Cook (1:00 p.m. ET), and Logan (3:30 p.m. ET).

Finally, some late season earnings continue to trickle in with DG ($1.47), NIO ($-0.22), CRWD ($-0.28), and HPE ($0.28) all reporting Q1 results today.

With the ISM Services (tomorrow) and BLS jobs report (Friday) still looming large, today should be a relatively quiet day for markets as traders digest the big May rally however risks of profit taking exist if a negative headline crosses the wires.

What Is the “TACO Trade?”

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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).