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Why Are Markets Ignoring Scary Headlines?

What’s in Today’s Report:

  • Why Are Markets Ignoring Scary Headlines?
  • Weekly Market Preview: Does the Fed Signal Rate Cuts Ahead?
  • Weekly Economic Cheat Sheet: Is Consumer Spending Losing Momentum?

Futures are modestly higher as geopolitical risks didn’t rise substantially over the weekend while Chinese economic data was stronger than expected.

Geopolitically, the Israel/Iran conflict escalated as the two countries exchanged attacks over the weekend, but there are no signs it’s spiraling into a broader regional conflict and that’s keeping geopolitical concerns anchored.

Economically, Chinese retail sales rose 6.4% y/y vs. (E) 4.9%, pushing back on concerns of a dramatic slowdown.

Today focus will remain on geo-political headlines but as long as the conflict stays limited between Israel and Iran, it’s unlikely to materially impact the markets.  Outside of geopolitics, the notable report today is the June Empire Manufacturing Survey (-7.3) and markets will want to see stable data and declining prices (further pushing back on stagflation fears).

Reset the trade relationship back to where it was

Reset the trade relationship back to where it was: Tom Essaye Quoted in Barron’s


Netflix and 6 More Winning Stocks to Sell Now

The White House now says that trade negotiations with China are over, even though the latest agreement from London “did little other than to reset the trade relationship back to where it was following the Geneva talks and, importantly, didn’t result in any further tariff reduction,” notes Sevens Report President Tom Essaye.

That means consumers will face at least 30% tariffs on Chinese imports and additional 25% on select goods and “according to the administration, they are going to stay there in perpetuity,” he notes. “Yes, ultimately Chinese tariffs were lower compared to the 145% absurdity in early April. But, they are much, much higher than at the start of the year.”

Also, click here to view the full article featured on Barron’s published on June 13th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.


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What is the Shadow Fed?

What’s in Today’s Report:

  • What is the Shadow Fed?

Futures are modestly lower as geopolitical concerns offset more strong tech earnings.

Geo-politically, multiple news outlets reported that Israel is preparing for a strike on Iranian nuclear facilities, which is boosting gold prices and weighing on global markets.

Oracle (ORCL) beat earnings on continued robust demand for AI infrastructure (the stock is up 7% pre-market).

Today focus will be on economic data via Jobless Claims (E: 243K) and PPI (E: 0.2% m/m, 2.6% y/y).  Claims have ticked higher in the last few weeks and if that continues, it will slightly increase economic anxiety and (slightly) pressure stocks.  On inflation, PPI is viewed as a loose leading indicator of CPI so if PPI can remain subdued, it’ll boost confidence inflation remains under control.

Finally, notable tech earnings continue today with ADBE ($4.01).

June MMT Chart

What’s in Today’s Report:

  • June MMT Chart

Stock futures are modestly lower this morning as the “framework agreement” from the U.S.-China trade talks is digested ahead of today’s critical U.S. CPI report.

Economically, Japanese CPI favorably fell from 4.1% in April to just 3.2% in May, below estimates of 3.5%.

Today, focus will be on the latest U.S. inflation data with CPI (E: 0.2% m/m, 2.5% y/y) and Core CPI (E: 0.3% m/m, 2.9% y/y) figures due to be released before the open.

There are no other economic reports today and no Fed officials are scheduled to speak which leaves a 4-Month Treasury Bill auction at 11:30 a.m. ET and a 10-Yr Treasury Note auction at 1:00 p.m. ET as the only other notable market catalysts on the calendar today.

Finally, two late season earnings releases that could move markets after the close include: CHWY ($0.16), ORCL ($1.30).

June Market Multiple Table (All About TACO)

What’s in Today’s Report:

  • June Market Multiple Table Update – All About “TACO”

Futures are slightly higher this morning as traders remain optimistic about progress in the ongoing U.S.-China trade talks ahead of the May CPI release tomorrow.

Economically, the NFIB Small Business Optimism Index rose 3 points to 98.8 in May, topping estimates of 95.9 which is supporting modest gains in U.S. equity futures.

There are no additional economic reports today and no Fed officials are scheduled to speak which limits potential catalysts to today’s Treasury auctions which include 6-Week and 52-Week Bill auctions at 11:30 a.m. ET and a (more important) 3-Yr Note auction at 1:30 p.m. ET.

Late season earnings continue to trickle in as well with: ASO ($0.84), SJM ($2.25), UNFI ($0.24), GME ($0.08), and PLAY ($0.96) all due to report Q1 results today.

Bottom line, today is lining up to be fairly quiet as far as scheduled catalysts are concerned. However, any materially positive or negative trade talk headlines out of London where U.S. and Chinese negotiations remain underway, could meaningfully move markets today before focus turns to tomorrow’s critical May CPI release.

Hard Landing/Soft Landing Scoreboard: May Update

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.

Tariff/Trade-War Update

What’s in Today’s Report:

  • Where Do We Stand With Tariffs and How Important Are They for Markets?
  • Weekly Economic Preview: ISM Data and May Jobs Report in Focus

Futures are lower with global markets amid a combination of escalating trade war tensions and an unexpected intensification in the Russia-Ukraine war over the weekend.

President Trump doubled tariffs on steel to 50% which dampens hopes for an EU trade deal while rhetoric between the U.S. and China deteriorated since Friday’s close.

Ukraine surprisingly struck Russian air base targets over the weekend in what military officials said was their large drone attack so far in the multi-year conflict. The escalating geopolitical tensions has reignited a fear bid in oil with futures prices up nearly 4% this morning.

Today kicks off a busy week of economic data with the most important release coming just after the open via the ISM Manufacturing PMI (E: 48.5). Construction Spending (E: 0.2%) will also be released after the open but is less likely to impact markets.

There are also multiple noteworthy Fed officials scheduled to speak today including, Logan (10:15 a.m. ET), Goolsbee (12:45 p.m. ET), and most importantly Powell (1:00 p.m. ET). Any fresh insight on policy plans has the potential to materially move markets (hawkish commentary would influence risk-aversion while dovish comments would support a continuation of the May rally).

Volatility Update

What’s in Today’s Report:

  • Volatility Update

Futures are slightly lower following a mostly quiet night of news ahead of the holiday weekend.

Politically, the Supreme Court issued a ruling overnight that implies the President does not have the authority to fire the Fed Chair and this is a general positive for markets (it mostly removes Trump firing Powell as a threat).

Economically, data was better than expected as UK retail sales and German GDP both beat estimates.

Today focus will be on New Home Sales (E: 700K) and there is one Fed speaker, Cook (12:00 p.m. ET).  But, given the looming holiday weekend, expect trading to be quiet barring any surprises.

What the Moody’s Downgrade Means for Markets (Two Important Charts)

What’s in Today’s Report:

  • What the Moody’s Downgrade Means for Markets
  • Two Important Charts: Interest Expense and Deficits

Futures are modestly lower this morning as the S&P 500’s six-day rally is being digested amid a steadying Treasury market after the Moody’s downgrade of the U.S. last week.

There were positive trade war headlines out of Japan, Vietnam, and India overnight helping global stocks rally while economically, German PPI favorably fell -0.9% vs. (E) -0.5%.

Looking into today’s session, there are no notable economic reports in the U.S., however the Treasury will hold a 6-week Bill auction at 11:30 a.m. ET which could shed light on the market’s near-term Fed policy expectations, but barring any big surprise, the auction is not likely to move markets.

There are a handful of Fed speakers today including: Barkin & Bostic just ahead of the bell (9:00 a.m. ET), and Musalem in the early afternoon (1:00 p.m. ET). A “higher-for-longer” shift in Fed policy outlook has been priced in recently, so any dovish commentary out of the Fed officials would be well received.

Finally, some late season earnings will continue to be released today including: HD ($3.59), PANW ($0.41), TOL ($2.86).

Highlighting the Value of International Diversification

What’s in Today’s Report:

  • Highlighting the Value of International Diversification

Futures are extending Thursday’s rally mostly on momentum, following a quiet night of news.

Economically, the only notable report was Italian CPI which, like other recent EU inflation metrics, was better than expected (2.0% vs. 2.1% y/y) and is helping EU shares extend the recent rally as well.

Today there are several economic reports including Housing Starts (1.362M), Import & Export Prices (E: -0.3% m/m, -0.3% m/m) and Consumer Sentiment (E: 53.0, 1-Yr Inflation Expectations: 6.6%).  But, the focus will really be on inflation as the cool CPI and PPI this week have been the most important positives for this market.  If the University of Michigan 5-Year Inflation Expectations don’t rise from last month (4.4% y/y), that will be an additional positive for stocks as it will further push back on inflation fears.

Finally, there are two Fed speakers today, Barkin (6:40 p.m. ET) and Daly (8:40 p.m. ET), but they shouldn’t move markets.