How demand expectations change in the wake of the storm will depend…said Tyler Richey, co-editor at Sevens Report Research, according to MarketWatch. Click here to read the full article.
The group’s leadership reiterated commitment to stable market conditions and flexibility in…Tyler Richey, co-editor at Sevens Report Research, told MarketWatch. Click here to read the full article.
What’s in Today’s Report:
Futures are moderately higher following a very quiet night of news as investors position for tomorrow’s jobs report.
Euro Zone PPI was much hotter than expected, rising 2.3% vs. (E) 1.2%, and that is the second consecutive strong inflation number from the EU.
There were no new infrastructure or COVID headlines overnight, and investors continue to add exposure ahead of an anticipated “Goldilocks” jobs report.
Today’s focus will be on economic data, especially Jobless Claims (E: 350K) and Unit Labor Costs (which is contained in Productivity & Costs). Unit Labor Costs are expected to rise 1.0% but if the number comes in decidedly higher than that, it will add to inflation fears (and could be a mild headwind on stocks today).
What’s in Today’s Report:
Futures are slightly lower following a quiet night of news as markets digest this week’s rally.
Chinese shares saw profit taking (Hang Seng down –2%) and that’s weighing on global stocks slightly, but there was no materially negative news out of China overnight.
Economic data was sparse as the German Gfk Consumer Climate slightly missed expectations (-1.2 vs. –1.0) while the Euro Zone money supply met estimates (up 8.1%).
Today we do get two economic reports including Jobless Claims (E: 340K) and revised Q2 GDP (E: 6.6%) but neither number should move markets unless they are major surprises. Instead, pre-Powell speech positioning will likely dominate markets today (Powell’s speech is tomorrow) and given stocks hit new highs this week, don’t be surprised if there’s some mild profit taking ahead of Powell’s speech tomorrow. Finally, in the bond markets, there’s a seven year Treasury auction mid-day today, and if the results are soft look for a continued rally in the 10 year yield (and an improving technical outlook for that yield).
Thank You!
I wanted to say a heartfelt, “Thank you” to all of you who sent me condolences and well wishes over the past week.
While I wish I could respond to each individual email or call, there have literally been hundreds of them, and if I took on that endeavor I’d have no time to write the Report! I believe that continuing to stay focused on the
markets and helping us to navigate this unprecedented time successfully is the best way I can show you my thanks, and you can count on me to do just that.
Again, thank you all. You have made this time easier.
What’s in Today’s Report:
There are risk-off money flows across asset classes this morning as investors fear that central banks are poised to tighten policy into a global economic slowdown this fall.
This week’s options expiration is likely amplifying the volatility this morning.
There were no market-moving economic reports or material news developments overnight.
Today, there are two economic reports to watch: Jobless Claims (E: 360K) and the Philadelphia Fed Manufacturing Index (E: 25.0).
No Fed officials are scheduled to speak today but there is a 30-Year TIPS auction at 1:00 p.m. ET that could move bond yields.
Volatility is likely to remain elevated today as we get closer to tomorrow’s options expiration while trader conviction is low given Jackson Hole looming next week as well as the fact that investor sentiment has deteriorated this week.
Editor’s Note: No Report Tomorrow
There will be no Report tomorrow, as I will be attending a funeral. Last week, my father, Tim Essaye, Sr., unexpectedly passed away. His funeral and memorial will be held today.
My dad helped get me on Wall Street when I got out of college and without his support and encouragement, I wouldn’t have had the courage, with my wife Alison pregnant with our first child, to leave a good job and start a new, daily market report.
He was the first subscriber to the Sevens Report.
So, for the first time in the nearly 10 years since I started the Sevens Report, there will be no issue on a trading day, as I will be focused today on celebrating his life with our family and friends.
I apologize for this inconvenience and thank you for your understanding.
If support holds, which it likely will as long as the news flow regarding COVID does not continue to…Tom Essaye of the Sevens Report has told MarketWatch. Click here to read the full article.
When the July WTI contract managed to close Monday above the July low at $66.41/bbl, it marked that level as…Tom Essaye of the Sevens Report has told MarketWatch. Click here to read the full article.
What’s in Today’s Report:
Futures are little changed following a generally quiet night of news.
Economic data was slightly underwhelming as UK Industrial Production (-0.7% vs. (E) 0.3%) and Euro Zone IP (-0.3% vs. (E) -0.2%) both missed estimates, although neither is weighing materially on markets.
Covid headlines remained largely unchanged, although Hawaii is reimposing restrictions on social gatherings. But, that headline isn’t enough to weigh on markets broadly, as the broad response to rising cases remains mask mandates and increased vaccinations (which aren’t material headwinds on the recovery yet).
Today focus will be on Jobless Claims (E: 378K) and markets will want to see the number continue to gradually decline (but not drop so fast that it makes the Fed taper more quickly). We also get Final PPI (E: 0.6% m/m, 7.3% y/y) but given yesterday’s CPI wasn’t hotter than expected, PPI shouldn’t move markets.
The oil market is likely to remain rangebound here as the physical market is poised to…said Tom Essaye, editor of the Sevens Report. Click here to read the full article.
The 2021 oil rally, which has seen WTI and Brent both rise around 48% year-to-date, has been driven…said Tom Essaye, founder of Sevens Report, in a note. Click here to read the full article.
