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Inflation Expectations

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What’s in Today’s Report:

  • Inflation Expectations

Stock futures are trading cautiously higher this morning while international markets were mixed overnight ahead of key U.S. inflation data.

Economically, the NFIB Small Business Optimism Index for August rose to 100.1 vs. (E) 99.0 which is helping U.S. equity markets edge higher in pre-market trade.

Today, there are no Treasury auctions or Fed officials scheduled to speak which will leave markets focused on the one major economic report today: CPI (E: 0.4%, 5.3%).

If the CPI report supports the transitory inflation narrative and suggests that price pressures have already peaked, stocks are likely going to be able to further stabilize after yesterday’s bounce. However, a “hot” print could easily trigger a wave of hawkish money flows and pressure the major indexes back down to fresh multi-week lows today.

Tom Essaye Quoted in Barron’s on August 30, 2021

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Affirm Holdings Soars, Moderna Falls — And What Else Is Happening in the Stock Market Monday

Futures are slightly higher mostly on momentum from Friday’s ‘dovish Powell’ rally, following…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

Tom Essaye Quoted in Barron’s on August 23, 2021

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Pfizer Climbs, Exxon Jumps — And What Else Is Happening in the Stock Market Monday

Futures are modestly higher on momentum from Friday’s rally and following mixed…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

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Tom Essaye Quoted in Barron’s on August 3, 2021

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Clorox Drops, Take-Two Interactive Falls, and the Stock Market Is Rising

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.

Tom Essaye Quoted in Barron’s on July 30, 2021

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Amazon Sinks, Chevron Pops, and the Nasdaq Is Down

Futures are moderately lower on disappointing earnings…wrote Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

Tom Essaye Quoted in Barron’s on July 21, 2021

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Chipotle Rises, Netflix Falls, and the Dow Continues Rebounding

Futures are modestly higher thanks to continued momentum from Tuesday’s…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

Tom Essaye Quoted in Barron’s on July 22, 2021

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CSX Rises, Las Vegas Sands Falls, and Stocks Are Wavering

Futures are marginally higher following another night of…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

Why Did Stocks Rally?

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What’s in Today’s Report:

  • Why Did Stocks Rally?

Futures are modestly higher thanks to continued momentum from Tuesday’s rebound combined with solid earnings reports.

Earnings overnight were good and importantly companies like CMG and UAL said the increase in COVID cases was not hurting business, which helped reassure markets that the Delta variant isn’t changing consumer’s behavior.

There were no economic reports overnight and there are no economic reports later today, so focus will remain on earnings and COVID trends.  If earnings are solid and commentary remains upbeat, and we don’t get any negative COVID headlines, then the rebound can continue today.

Some earnings we’ll be watching today include (in order of importance):  TXN ($1.82), JNJ ($2.28), KO ($0.57), VZ ($1.29), STX ($2.87), LVS (-$0.19), CSX ($0.37), DFS ($3.58).

Tom Essaye Quoted in Barron’s on July 12, 2021

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Virgin Galactic Soars, Rocket Cos. Drops, and Stocks Are Mostly Lower

Futures are slightly lower following a very quiet weekend of news as markets wait for…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.

What’s the State of Infrastructure?

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What’s in Today’s Report:

  • What’s the State of Infrastructure?

Stock futures are little changed near all-time highs in quiet trading this morning as concerns about the “Delta” variant of COVID-19 linger while investors look ahead to fresh economic data in the U.S.

Economically, Japanese Unemployment edged up to 3.0% in May from 2.8% in April but Retail Sales topped estimates while Eurozone June Economic Sentiment met expectations.

Looking into today’s session, there are two reports on real estate prices due this morning: Case-Shiller Home Price Index (E: 1.2%) and FHFA House Price Index (E: 1.0%), before the more important release on Consumer Confidence (E: 118.8) is due out shortly after the bell.

There is also one Fed officials scheduled to speak: Barkin (9:00 a.m. ET) but as long as there is not a notable hawkish shift in tone, the commentary should not impact stocks.

That will leave investors focused on any news or developments regarding the “Delta” variant of COVID-19, specifically if any government imposes new lockdowns as a result and infrastructure negotiations.