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What to Buy If You Want to “Dip a Toe”

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What’s in Today’s Report:

  • What to Buy If You Want to “Dip a Toe”
  • Flash Composite PMI Data Takeaways

Futures are higher with global shares while oil and bond yields are both sharply lower as investors react to a potential 1-month ceasefire deal between the U.S. and Iran.

Economically, Germany’s Ifo Survey was mixed with Current Conditions flat at 86.7 but Business Expectations fell to 86.0 vs. (E) 88.0 while U.K. CPI was in-line at 3.0% Y/Y.

Today, focus will remain primarily on the U.S.-Iran ceasefire headlines and any further, concrete details surrounding the prospects for a deal will continue to support risk-on money flows.

Additionally, there is one second tiered economic report (delayed due to the government shutdown) due to be released with Import Prices (E: 0.6% m/m) poised to hit ahead of the bell.

There is also a 5-Yr Treasury Note auction at 1:00 p.m. ET, and if demand for the Notes is as weak as it was during yesterday’s 2-Year auction, yields could begin to bleed lower and act as a renewed headwind on equity markets.

Finally, there is one Fed speaker after the bell: Miran (4:10 p.m. ET) and a handful of late season earnings reports that are unlikely to materially impact markets given the geopolitical development of the last 24 hours. Companies reporting include: CHWY ($0.09), PAYX ($1.68), and CTAS ($1.23).

 

Key Technical Signals and Correction Territory

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What’s in Today’s Report:

  • Key Technical Signals and Correction Territory
  • Weekly Market Preview:  All About Iran – Do We See De-escalation?
  • Weekly Economic Cheat Sheet:  Any Signs Higher Oil Is Impacting Growth?

Futures have reversed this morning’s losses and are sharply higher after President Trump announced a pause in strikes on energy infrastructure and cited “productive” talks with Iran.

This comes after President Trump threatened to “obliterate” Iran’s power plants if the Strait of Hormuz was not reopened to ship traffic (he implied a Monday night deadline).

Oil prices fell sharply in response to the U.S-Iran update from the President this morning.

Today focus will remain on the U.S./Iran war and we can continue to expect stocks to trade inversely to the price of oil. So, any signs of de-escalation (including social media posts or actual events) should make oil drop and stocks rebound while any signs of further escalation (again, including social media posts or actual events) will put more pressure on stocks.

Outside of geopolitics, there is one economic report today, Construction Spending (E: 0.1%), but that shouldn’t move markets.

 

3 Market Headwinds, 3 Indicators to Watch

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What’s in Today’s Report:

  • Three Market Problems, Three Indicators to Watch
  • Weekly Market Preview: De-escalation or Not?
  • Weekly Economic Cheat Sheet: FOMC Decision the Key Event

Futures are modestly higher after several tankers transited the Strait of Hormuz over the weekend, raising hopes the key oil route could reopen.

Rhetoric from both sides continues to downplay the chances of near-term negotiations while reports say the U.S. may form a coalition to escort ships through the Strait.

There were no notable economic reports overnight.

Today focus will be on Empire Manufacturing, Industrial Production (E: 0.1%), and the NAHB Housing Market Index (E: 37). Markets will want to see stable growth data as investors monitor oil prices.

Beyond the data, the Treasury will auction 3 & 6-Month Bills at 11:30 a.m. ET while earnings today include DLTR ($2.53) and BEKE ($0.07).

 

The Two Specific Reasons Stocks Dropped Last Week

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What’s in Today’s Report:

  • The Two Specific Reasons Stocks Dropped Last Week
  • Weekly Market Preview: Will Oil Keep Rising? (The Sooner the Strait of Hormuz Reopens, the Better)
  • Weekly Economic Cheat Sheet: CPI in Focus on Wednesday (Markets Need a Tame Number)

Futures are sharply lower on surging oil prices (oil is above $100/bbl) as there was no progress on a ceasefire between the U.S. and Iran or reopening the Strait of Hormuz.

Iran selected the Ayatollah’s son, Mojtaba Khamenei, as supreme leader, confirming that headliners are still in charge and reducing hopes of a near term ceasefire.

Iran damaged a desalination plant in Bahrain, continuing attacks on neighbor’s energy and general infrastructure (this is contributing to the rise in oil).

Today there are no economic reports so focus will remain squarely on Iran.  Any headlines that imply de-escalation should trigger a solid rebound from the early lows while any new attacks on energy infrastructure will boost oil prices and weigh on stocks.

What the U.S./Iran Conflict Means for Markets

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What’s in Today’s Report:

  • What the U.S./Iran Conflict Means for Markets
  • Weekly Market Preview: Does the Conflict Stay Contained?
  • Weekly Economic Cheat Sheet: An Important Week for Growth (Jobs Report on Friday)

Futures are moderately lower on geopolitical concerns following the U.S./Israeli attack on Iran over the weekend.

Oil (up 7%) and gold (up 3%) are sharply higher and global stocks are lower as markets price in greater geopolitical risk.  But, the moves are in line with expectations (so no worse than feared).

Economically, the UK Manufacturing PMI slightly missed estimates (51.7 vs. 52.0) while the EU reading met forecasts (52.0) but neither number is moving markets.

Today focus will be on geopolitics and specifically whether the U.S./Iran conflict widens.  If the conflict does start to widen (and bring in other countries and expand the number of combatants on both sides) that will be an incremental market negative.

Away from geopolitics, this is an important week for economic data and the first key report comes today via the ISM Manufacturing PMI (E: 51.8).  Simply put, the stronger this number, the better as markets need solid growth more right now than they need a sooner than expected rate cut.

 

January Market Multiple Table Chart

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What’s in Today’s Report:

  • Market Multiple Table Chart

Futures are modestly higher mostly on momentum from Thursday’s rally and following a quiet night that was devoid of any material earnings or economic data.

Oil is higher by 1% on reports the U.S. is moving military assets back into the Mid-East, implying the chances of a strike on Iran did not decrease as much as thought.

Today there are two economic reports, Industrial Production (E: 0.1%) and Housing Market Index (E: 40) as well as two Fed speakers: Bowman (11:00 a.m. ET) and Jefferson (3:30 p.m. ET), but barring a major surprise, none of that should move markets ahead of the long weekend.

Instead, focus will stay on Washington and any reports, headlines or social media posts that 1) Imply more attacks on the Fed or 2) Hint at military action in Iran, Greenland, Mexico, etc. will weigh on stocks.

Finally, on the earnings front, the week has been mostly focused on bank results and that continues this morning with several regional reports: PNC ($4.23), STT ($2.82), RF ($0.61), MTB ($4.44).

Sevens Report’s Tyler Richey Says Venezuela Tanker Seizure Won’t Spike Oil Prices

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Tyler Richey sees geopolitical risk rising, but limited impact unless exports are disrupted.

U.S. seizes oil tanker off Venezuela. Why one analyst says it’s ‘a smart move.’

Tyler Richey, co-editor of Sevens Report Research, said in an email Wednesday that disruptions to Venezuelan oil “would add another factor to the already present geopolitical fear” that has rattled the oil futures market for more than a year.

“The wild card to watch is whether or not Guyana’s oil production growth is impacted due to disputes over offshore oil resources” with Venezuela, Richey said. However, “barring a material impact on Venezuelan oil exports or Guyana oil production growth expectations, the price impact on oil should be limited.”

Also, click here to view the full article published in MarketWatch on December 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.

Oil Supply Surplus Concerns Pull Prices Down Says Tyler Richey

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Concerns over a supply surplus help pull oil prices to their lowest in 3 weeks

A monthly report from the Organization of the Petroleum Exporting Countries released Wednesday revealed a “fresh jolt of supporting evidence that the market is already in a physical surplus dynamic that is poised to worsen into 2026,” said Tyler Richey, co-editor at Sevens Report Research.

That comes as “global production is trending higher while demand growth is flattening out,” he said.

Also, click here to view the full article published in MarketWatch on November 13th, 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.

Tyler Richey Quoted in Troymedia.com as Oil Oversupply Pressures Grow

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OPEC+ blinks as oil oversupply pressures grow

The World Bank Group forecasts that excess global oil supply could average four million bpd by 2026. That kind of surplus has consequences. U.S. benchmark West Texas oil prices “could fall as low as the mid-US$30s within a year if the sizable physical market surplus expected in 2026 becomes reality,” said Tyler Richey, co-editor at Sevens Report Research.

Also, click here to view the full article on Troymedia.com published on November 4th, 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.

Sevens Report: Oil Market Faces Record Surplus Despite U.S.-China Trade Truce

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Tyler Richey warns crude prices could fall to mid-$30s as 2026 supply glut looms.

An oil supply glut could sink prices to $35 a barrel next year. Why the U.S.-China trade truce won’t change that.

While President Trump’s trade truce with China offered a brief dose of optimism, Sevens Report Research warns it won’t offset an impending record oil surplus. Co-editor Tyler Richey told MarketWatch that the deal “does not change the current physical market math,” which still points to a 2026 supply glut averaging 4 million barrels per day, according to World Bank and IEA data. Richey cautioned that WTI crude could drop to the mid-$30s if forecasts hold, echoing the 2010s OPEC price war. Despite the tariff resolution, oil prices barely moved, as analysts see little change in supply-demand dynamics. Richey said only a major geopolitical shock or a global growth surge could shift the bearish outlook, noting fundamentals “remain tilted in favor of the oil bears.”

Also, click here to view the full article published in MarketWatch on October 30th, 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.