“Phase one is behind us and it met market expectations. Now the very real question of whether phase one results in an uptick in economic growth lies in front of us…” Tom Essaye, the founder of The Sevens Report, said in a note. Click here to read the full report.
“Phase one is behind us and it met market expectations,” said Tom Essaye, founder of The Sevens Report, in a note. “Now the very real question of whether phase one results in an uptick in economic growth lies in front of us, and the truth is it’s unclear. Nothing in phase one…” Click here to read the full article.
What’s in Today’s Report:
Futures are modestly higher following a quiet night of news as markets continued to digest that the actual text of the phase one trade deal largely meet expectations.
Economic data was sparse as the only report was German CPI and it met estimates at 1.5% yoy.
Today focus will be on economic data and earnings, as there are several important economic reports including (in order of importance): Retail Sales (E: 0.3%), Philly Fed (E: 3.4), Jobless Claims (E: 214K), and Housing Market Index (E: 75). There is also one Fed speaker, Bowman (10:00 a.m. ET), but he shouldn’t move markets.
On the earnings front, results have been mixed so far this week, and focus will turn more towards earnings now that phase one is a done deal. Some important reports we’ll be watching today include: MS ($0.98), SCHW ($0.64), BK ($0.99), TSM ($0.72), CSX ($0.97), PPG ($1.35).
What’s in Today’s Report:
Futures are slightly lower while international equity markets were little changed overnight as investors look ahead to the signing ceremony of the phase-one trade deal between the U.S. and China and await more earnings.
Economically, Eurozone Industrial Production for the month of November was a mild miss coming in at 0.2% vs. (E) 0.3% which is modestly weighing on EU shares today.
Looking into today’s session, there are two economic reports to watch: PPI (E: 0.2%) and Empire State Manufacturing Index (E: 3.5) and two Fed officials are scheduled to speak: Harker (11:00 a.m. ET) and Kaplan (12:00 p.m. ET).
Investors however will remain focused on earnings with: BAC ($0.74), UNH ($3.90), GS ($5.20), and BLK ($7.67) all due to release results this morning.
“Stocks are grinding relentlessly higher into year-end on continued momentum from the positive resolution of four key events: A phase one trade deal…” Tom Essaye, the founder of Sevens Report, said in a note. Click here to read the full article.
What’s in Today’s Report:
Futures are modestly higher on the U.S./China phase one deal momentum while economic data was mixed.
There were no new details released on phase one trade deal over the weekend, but sentiment towards the agreement remained generally positive.
Economic data was mixed as Chinese economic data beat estimates (Retail Sales, FAI, Industrial Production), while EU flash manufacturing PMI missed 45.9 vs. (E) 47.3.
Today (and going forward) focus will turn back towards economic data, so today’s Flash Manufacturing PMI (E: 52.4) is the key number to watch, while Empire Manufacturing Index (E: 4.0) and the Housing Market Index (E: 70) are also notable. Going forward, the better the economic data, the better for stocks.
Tom Essaye interviewed with Yahoo Finance’s Alexis Christoforous, Brian Sozzi and Jared Blikre to discuss the latest market action, U.S.-China trade deal, economy and more…Click here to watch the full interview.
“The sooner … phase one is signed (regardless of the details) the better, because both sides want a deal, so the longer it’s delayed, the more the market will begin to…” Tom Essaye, founder of market research firm Sevens Report Research, wrote in a note to clients. Click here to read the full article.
