“Going forward, the dollar will have a hard time declining unless the Fed gets aggressively dovish, simply because global growth remains lackluster and global central banks are easing policy…” said Tom Essaye, founder of the Sevens Report. Click here to read the full article.
What’s in Today’s Report:
S&P futures are climbing this morning, tracking gains in overseas markets as investors digest positive trade war headlines from Monday and better-than-feared earnings to kick off a very busy week of the Q2 reporting season.
There were no notable economic reports overnight and macro news was limited.
Looking into today’s session, focus will be on the micro as earnings season picks up however there are two economic data points on the housing market: FHFA House Price Index (E: 0.3%) and Existing Home Sales (E: 5.340M). Meanwhile there are no Fed officials scheduled to speak.
In the bond market, there is a 2-Year T-Note Auction today at 1:00 p.m. ET which could affect the yield curve. If we see the curve flatten further as it did last week, that could weigh on stocks again but contrarily, if we see the 10s-2s widen back out towards 30 basis points, that should support stocks broadly.
Earnings remain in the spotlight this week with notable reports coming from: KO ($0.62), LMT ($4.74), BIIB ($7.58), UTX ($2.04), JBLU ($0.57), and TRV ($2.32) ahead of the bell, while SNAP (-$0.10) and V ($1.33) will report after the close.
Tom Essaye quoted in Axios on May 30, 2019. “The 2019 rally has been driven by 1) A dovish pivot by the Fed (no more hikes), 2) An expected U.S.-China trade deal, 3) Stable U.S. and global economic growth and…” Click here to read the full article.
Tom Essaye quoted in Barron’s on May 21, 2019. “Today’s news was a positive development, but by no means a game-changer for the broader Huawei situation…” Click here to read the full article.
Tom Essaye was quoted in Markets Insider on May 15, 2019. The red metal has been the “single-best leading indicator for stocks over the past 18 months,” and is flashing a warning sign for…” Click here to read the full article.
The Energy Information Administration report on U.S. petroleum supplies due Wednesday “will likely be the most-important catalyst for the energy market this week. The closure of the Houston Ship Channel in recent weeks has likely skewed…” wrote analysts at the Sevens Report. Click here to read the full article.
Tom Essaye appeared on Reuters on April 4, 2019. Great interview with Fred Katayama discussing the “goldilocks number” for the March jobs report. Click here to watch the full interview.
