That could be because traders are “holding out hope that the consumer price index report is going to be good,” Tom Essaye, founder of Sevens Report Research, said on Friday. Click here to read the full article.
Demand concerns are now the dominant influence on the global energy market and even though supply worries will persist with the Russia-Ukraine war, we will need to see evidence of demand stabilizing for the oil market to begin to find a near-term bottom,” wrote analysts at Sevens Report Research, in a note. Click here to read the full article.
I think that as we are on the precipice of this jobs report, really what we’re seeing today is a bit of digestion of that of the recent of the two days gains,” Tom Essaye, founder of Sevens Report Research, told Barron’s on Thursday. Click here to read the full article.
What’s in Today’s Report:
Futures are slightly higher thanks to solid Chinese economic data and following a mostly quiet weekend.
Chinese exports rose more than expected (18% vs. (E) 14.1%) and that’s helping to slightly improve global economic sentiment.
Politically, Senate Democrats passed the Inflation Reduction Act over the weekend as expected and it should become law this week. But, markets don’t expect any meaningful impact on corporate earnings in the n
Today there are no notable economic reports and most of the focus will be on the specific implications of the Inflation Reduction Act, which should pass the House this week. But, this bill does not appear to have any meaningful macro-economic implications. So, markets will look ahead to Wednesday’s all-important CPI report, and with stocks still extended, it needs to be better than expectations to support the rally.
Hiking fed funds to 4%, 5% or higher won’t make semiconductor factories in Asia run more consistently, nor will it deter the Chinese from future lockdowns. Tom Essaye, a trader and founder of financial research firm Sevens Report Research, wrote. Click here to read the full article.
What’s in Today’s Report:
Stock futures are trading cautiously higher this morning as geopolitical angst is easing after Pelosi’s departure from Taiwan while economic data was mostly positive overnight.
Chinese and EU Composite PMIs for July topped estimates while Eurozone PPI was no worse than feared and that data is helping some of the hawkish fears from Tuesday unwind.
Looking into today’s session, earnings season is beginning to wind down but there are still a few notable reports due out today: MRNA ($4.50), CVS ($2.16), YUM ($1.08), HOOD (-$0.36), EBAY ($0.89), and MGM ($0.24).
However, the market’s main focus will be on economic data today with ISM Services Index (E: 53.0) and Factory Orders (E: 1.1%) both due out shortly after the open while there is one Fed speaker: Harker (10:30 a.m. ET).
Investors will want to see still solid growth numbers in the data, further easing in inflation readings, and hopefully a less hawkish tone out of the Fed if the July relief rally is going to extend into August.
Our technical view of oil has now shifted from cautiously bullish to neutral with rising risks to the downside, especially after WTI closed below that aforementioned support at the March and April double bottom lows ($95.18) for a second time in a week yesterday. Wrote analysts at Sevens Report Research, in a note. Click here to read the full article.
By making borrowing more expensive and thereby tempering demand, rate increases are critical in combating inflation, but “growing fears” that the hikes will spur a recession by undercutting economic growth are the “driving forces” behind recent market weakness, says analyst Tom Essaye of the Sevens Report. Click here to read the full article.
What’s in Today’s Report:
Stock futures are modestly lower on soft retailer earnings from yesterday as focus turns to the July FOMC meeting.
WMT is down 9% in pre-market trading after the retail giant slashed its profit outlook, citing inflation pressures on consumers which is driving risk-off money flows in pre-market trade amid a resurgence in recession fears.
Today, investors will begin to look ahead to tomorrow’s Fed announcement as the FOMC meeting begins this morning however there are also several important economic reports including: Case-Shiller House Price Index (E: 1.6%), Consumer Confidence (E: 96.8), New Home Sales (E: 664K), and the Richmond Fed Manufacturing Index (E: -10).
Earnings season also continues to pick up today with UPS ($3.14), KO ($0.67), GM ($1.40), GE ($0.38), and MCD ($2.46) reporting ahead of the bell while MSFT ($2.28), GOOGL ($1.28), and V ($1.74) will release results after the close.
The market looks at that, and basically, the logic is, ‘oh crap, if they’re doing this then what about the ones aren’t as strong?’ And what are they seeing coming that everyone else isn’t…said Tom Essaye, president of Sevens Report Research. Click here to read the full article.
