7 Things Need to Happen For Stocks to Move Higher
Tom Essaye, founder of Sevens Report Research, recently compiled this list of seven things that need to happen for the market to make it back to new highs this year. Click here to read the full article.
What’s in Today’s Report:
Futures are only slightly lower despite disappointing U.S./China trade headlines over the weekend and more underwhelming global economic data.
The South China Morning Post reported that a Trump/Xi trade summit (to end the trade war) might not happen until June, later than the current April expectation, as talks on key issues continue to drag out.
Global economic data remained underwhelming as Japanese exports missed expectations, falling –1.2% vs. (E) 0.7%.
Today there is only one economic report, Housing Market Index (E: 63.0), and no Fed speakers (they’re in the blackout period ahead of Wednesday’s meeting) so unless we get a surprise U.S./China trade headline (and chatter there seems to be rising following the weekend) I’d expect digestion of last week’s big rally.
What’s in Today’s Report:
Futures are slightly lower following a quiet night as markets digest more mixed economic data following the big three day rally.
Chinese economic data was mixed as Industrial Production missed estimates (5.3% vs. (E) 5.5%) while Fixed Asset Investment slightly beat and Retail Sales met expectations.
Geo-politically it was a quiet night as there were no updates to U.S./China trade.
Today focus will be on economic data via the Jobless Claims (E: 225K), Import Export Prices (E: 0.3%, 0.2%) and New Home Sales (E: 620K), as well as testimony before Congress by Treasury Secretary Mnuchin. Finally, there’s a GE guidance update later this morning, and if that’s particularly soft, that could hit stocks.