Tyler Richey, co-editor of the Sevens Report said “As the developments have been digested today, the flurry of Trump tweets are being seen more as a negotiating tactic that has the potential to…” Click here to read the full MarketWatch article.
Tom Essaye, founder of The Sevens Report, said a modest but noticeable 539,000-barrel draw from the Strategic Petroleum Reserve — just the second time the US has tapped its SPR this year…Click here to read the full article.
“It’s been made clear that Trump is very serious about enforcement of the sanctions,” said said Tyler Richey, co-editor at Sevens Report Research in Palm Beach Gardens, Florida. “The question is how much will their exports fall versus how much and how quickly can Saudi Arabia and other…Click here to read the full article.
“There’s not many people who are willing to short this market. We could be near a market top…” Tyler Richey quoted in Bloomberg. Click here to read the full article.
What’s in Today’s Report:
Futures are modestly lower thanks to higher oil and new concerns about the longevity of Chinese economic stimulus.
The South China Morning Post released an article saying Chinese officials will again focus on structural economic reforms, which means limited future economic stimulus.
Oil is 2% higher following reports the Trump administration will not renew any Iranian import wavers.
Today there is only one economic report, Existing Home Sales (E: 5.30M), and that won’t move markets.
So, the key to trading today will be earnings, and here are the reports we’re watching: HAL ($0.23), KMB ($1.54), WHR ($3.04).
What’s in Today’s Report:
Futures are slightly lower following a night of mixed economic data.
EU flash composite PMIs missed estimates (51.3 vs. (E) 51.8) and that’s a disappointment given recent stabilization in China. But, not all the data was bad as UK Retail Sales rose 1.1% vs. (E) 0.2%, likely on Britons stocking up goods ahead of the hard Brexit deadline in late March.
Today is the eve of a three day weekend but it’s going to be busy as we get a lot of economic data and important earnings.
Important data today includes (in order of importance): PMI Composite Flash (E: 54.3), Retail Sales (E: 0.8%), Philly Fed (E: 10.2) and Jobless Claims (E: 206K). As we said in Monday’s report, the stronger the data, the better for stocks as there is no inflation threat right now (so good data won’t make the Fed hawkish).
On the earnings front, some releases we’ll be watching include: AXP ($2.00), PM ($1.00), SLB ($0.30) and HON ($1.83).
Tyler Richey, co-editor at Sevens Report in Palm Beach Gardens, Fla., said President Trump’s Twitter post last week saying oil prices were “getting too high,” and telling OPEC not to reduce production too much, will continue to work as a bearish counterweight to OPEC. “Trump’s tweet targeting OPEC+ policies from last week is still simmering…” Click here to read the full article.
Tyler Richey, co-editor of Sevens Report Quoted in MarketWatch on February 4, 2019.
“There have been a lot of shifting pieces in the oil market to start 2019 as a dovish [Federal Reserve], and subsequently weaker dollar, sanctions on Venezuela, and…” Read the full article here.
What’s in Today’s Report:
Futures are marginally weaker following a quiet night as markets as markets further digest the 2019 rally.
Economic data was sparse although Euro Zone Core HICP (their CPI) met expectations at 1.0%, which remains near multi-month lows.
Today focus will remain on earning and we get some notable consumer companies reporting (in addition to more banks). Some reports we’ll be watching include: MS ($0.90), PPG ($1.10), NFLX ($0.25),and AXP ($1.79). As has been the case so far in earnings season, the commentary on the economy will be just as important as the actual results.
We also get two notable economic reports, including Jobless Claims (E: 216K) and the Philadelphia Fed Business Outlook Survey (E: 10.0) plus one Fed speaker: Quarles (10:45 p.m. ET). Bottom line, if earnings continue to beat low expectations, stocks can grind higher for now.
Tyler Richey appeared on TD Ameritrade Network on January 15, 2019. Watch the entire clip here