The U.S. military action that killed Iran’s Maj. Gen. Qassem Soleimani last week “served as a reminder that the Trump administration is both unconventional and unpredictable, and that helped reintroduce the geopolitical fear bid that carried the oil market to multi-month highs this week,” Tyler Richey, co-editor at Sevens Report Research told MarketWatch on Tuesday. Click here to read the full article.
What’s in Today’s Report:
Futures are flat following a very quiet night of news.
Economic data was mixed as Australian jobs adds beat expectations (39k vs. (E) 18k) while British retail sales badly missed estimates in November (-0.6% vs. (E) 0.5%. But, neither number is moving markets.
On the earnings front, Micron (MU) had positive commentary and the stock rallied 5% after hours, and that’s helping broader market sentiment this morning (it’s the single biggest reason stocks are flat).
Today’s focus will remain on economic data, and there are three notable reports including (in order of importance): Jobless Claims (E: 221K), Philly Fed (E: 8.5) and Existing Home Sales (E: 5.450M).
As has been the case, the stronger the data, the better, and if we get decent prints from these reports, we’ll be looking at 3200 in the S&P 500 shortly after the open.
The “solid economic data in the U.S. and abroad” paired with phase one/phase two trade deal optimism helped fuel the rally from a fundamental standpoint. From a technical standpoint, recently strong upside momentum is creating a ‘chase’ higher effect, further lifting…” Tyler Richey, co-editor at Sevens Report Research wrote in Tuesday’s newsletter. Click here to read the full article.
What’s in Today’s Report:
Futures are slightly higher following a generally quiet night as markets digest yesterday’s Fed meeting and wait on important trade news and the results of the UK election.
Today is a big day in the U.S./China trade as Trump is meeting with senior advisors to decide the fate of the 12/15 tariff increases. It’s widely expected they will be delayed and if they are not, that will be a negative shock for markets.
Economic data was again mixed as Euro Zone IP missed (-0.5% vs. (E) -0.3%) while German CPI met expectations.
Today will be a busy day. First, regarding the trade meeting, it’s unclear if a formal announcement will be made on the decision, but it could come at any time so markets will be watching the tape closely. Additionally, there is also an ECB Meeting this morning and it’s new ECB President Lagarde’s first press conference. Finally, we should know the results of the UK election by this evening, and the key number for the Torys is 335 seats. Stocks will like any result above that number.
On the economic front, the only notable report is Jobless Claims (E: 213K).
“Trade war headlines have been the main driver of the energy markets, but since late last week, OPEC+ policy expectations, economic data, and inventory/production releases have…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
Sevens Report co-editor Tyler Richey was interviewed by Ben Lichtenstein from TD Ameritrade Network, discussing oil, energy trade war, commodities and more…Click here to watch the full interview.
The bearish supply and production data by the Energy Information Administration and “lack of clarity” on the U.S.’s plans for tariff policy changes as part of the phase one trade deal with China, are “both negative influences on the market…” said Tyler Richey, co-editor of Sevens Report Research. Click here to read the full article.
“The rising tensions between the U.S. and China over the last 24 hours has resulted in a broad risk-off move. Oil is being dragged down with stocks and other assets sensitive to global growth expectations, which continue to fall under pressure…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
“Those comments about Saudi oil production and capacity by Al-Buainain were certainly a bearish catalyst for today’s price weakness. Speculation that production would be back online much quicker than initially thought was the main driver of…” Tyler Richey, co-editor at Sevens Report Research, told MarketWatch. Click here to read the full article.
U.S. supplies rose more than expected last week, though was “largely offset by the less-bearish to mildly bullish inventory statistics for the refined products…” said Tyler Richey, co-editor of Sevens Report Research. Click here to read the full report.
