Political risks to this market, futures are sharply lower (about 1%), Chinese Retail Sales (8.1% vs. (E) 9.0%) and Industrial Production (5.4% vs. (E) 5.9%) both badly missed estimates, geopolitically it was a quiet night although Chinese officials confirmed the reduction of auto tariffs to 15% from 40% (this was already pledged but it is good to see it will be enacted on Jan 1.) and more.
Dow Theory: first bearish signal since July 2015, futures are enjoying a bounce this morning, there is only one economic report: PPI (E: 0.0%) however inflation has been an important topic recently and a material “miss” or “beat” could move markets and more.
Why stocks dropped (new reason) and how markets stabilize, weekly market preview, weekly economic cheat sheet (CPI Wed. and lots of data Friday), futures and global markets are modestly lower due to momentum from Friday’s sell off and more.
Market technical update (encouraging signals), why the yield curve has flattened SO quickly (Blame Oil), futures are modestly lower as markets digest yesterday’s late day rally and look ahead to this morning’s jobs report, geopolitically, initial reports imply the U.S./China trade talks will continue despite the Huawei CFO arrest, why stocks rebounded yesterday and more.
Why markets are dropping again (And Why We Don’t Think It’s a Bearish Gamechanger), what needs to happen in the short term for markets to stabilize, jobs report preview, futures are sharply lower as the arrest of the Huawei CFO in Canada has added to uncertainty on U.S./China trade, while oil is down sharply due to OPEC disappointment and more.
Sevens Report’s Tom Essaye quoted in USA TODAY on December 4, 2018. His take on markets, price action, S&P 500 and more.
OPEC’s Catch-22 Explained, ISM Manufacturing PMI Analysis, futures are modestly lower as the Trump-Xi “trade truce” continues to be digested this morning while the yield curve flattened further overnight, underscoring growth concerns, the major underlying story this morning is the yield curve as the 2’s-10s spread compressed to new lows overnight (13bp) and the 2’s-5’s actually inverted. and more.
What The U.S./China Trade Truce Means for Markets, Four Keys to A Bottom Updated: Getting Closer, but Not There Yet, Weekly Market Preview, Weekly Economic Cheat Sheet (All About Growth and Jobs) and more.
Trump/Xi Meeting Preview: The Good, the Expected & the Ugly, there are no economic reports today and just one Fed speaker, Williams (1:00 p.m. ET), but he won’t move markets. So, markets should be in a general holding pattern ahead of the G-20 and I’d expect a quiet day and more.
Sevens Report’s Tom Essaye appeared in Yahoo Finance on November 23, 2018. His take on oil, market volatility, stocks and more.