Investors are still expecting another stimulus package will eventually get passed: “The market still wants, and very much expects, an actual stimulus bill to be signed…” according to Tom Essaye, editor of the Sevens Report. Click here to read the full article.
“The bottom line is that if we do see real disappointment in stimulus or the vaccine, then a 10% correction is the likely best-case scenario, and it’ll come…” said Tom Essaye of The Sevens Report, in a note. Click here to read the full article.
Yahoo Finance’s Brian Sozzi and Alexis Christoforous break down latest market action with The Sevens Report Founder, Tom Essaye. Click here to watch the full interview.
What’s in Today’s Report:
Futures are marginally higher following decent economic data combined with some mild progress on stimulus hopes.
Global manufacturing PMIs were generally better than expected as the Chinese PMI rose to 52.8 vs. (E) 51.1 while the EU number also beat expectations (51.8 vs. (E) 51.1).
On the stimulus front, both parties acknowledged some progress on negotiations, but they remained far apart.
Today focus will be on the ISM Manufacturing PMI (E: 53.5) and the market needs/wants a strong number here to help refute the growing list of indicators that imply the economic recovery is pausing/stalling.
Regarding stimulus, headlines will move the market this week but more broadly, investors are expecting some significant progress by the end of the week. If that progress doesn’t occur, that will become a headwind on stocks.
Finally, there are also two Fed speakers today, Bullard (12:30 p.m.ET) and Evans (2:00 p.m. ET), but neither should move markets.
Tom Essaye – Sevens Report Founder and President weighs on on current market moves with Adam Shapiro and Julie Hyman on Yahoo Finance’s On The Move. Click here to watch the full interview.
What’s in Today’s Report:
Futures are higher this morning suggesting that U.S. equities will extend last week’s rally and rise in sympathy with global shares today as investors look ahead to earnings season while coronavirus cases continue to surge globally.
New COVID-19 cases continued to rise sharply over the weekend (Florida set a record with more than 15,000 new cases in a single day Saturday) but the death rate importantly remains low which is allowing the market to largely shrug off the spike.
PEP ($1.25) unofficially kicks off earnings season today while major banks including JPM, C, and WFC are due to report their earnings tomorrow which will be one of the more important market catalysts of the week ahead.
Looking into today’s session, things are lining up to be relatively quiet as there are no economic reports and investors will hear from just two Fed officials: Williams (11:30 a.m. ET) and Kaplan (1:00 p.m. ET).
What’s in Today’s Report:
Stock futures are little changed today as investors digest the choppy trade from the front half of the week amid negative coronavirus headlines, ongoing tensions between the U.S. and China, but still mostly upbeat economic data.
Johns Hopkins University reported a new single day record increase of +60K new coronavirus cases in the U.S. yesterday which is weighing on sentiment this morning.
There were no market moving economic reports overnight and no new data is scheduled to be released in the U.S. today.
One Fed official will speak this afternoon: Bostic (12:15 p.m. ET) however investor focus will largely remain on the trends of the coronavirus outbreak and any new indication as to whether or not there will be another round of economic shutdowns which would be a clear negative for risk assets at current levels.
Tom Essaye, Sevens Report Research Founder, joins Yahoo Finance’s Brian Sozzi and Jared Blikre to discuss the latest market action. Click here to watch the full interview.
What’s in Today’s Report:
Stock futures are trading higher with international shares as conflicting trade war headlines continue to be digested while economic data was mostly encouraging overnight.
White House trade advisor, Peter Navarro, said late Monday that the U.S.-China trade deal was “over,” but his comments were contradicted by a Trump tweet saying the deal was “intact,” which saw risk-off money flows reverse o/n.
Global Composite Flash PMIs largely topped expectations overnight, bolstering hopes that a swift economic recovery is underway.
Today, investor focus will be on economic data early as the U.S. Composite PMI Flash (E: 45.0) and New Home Sales (E: 630K) are both due out shortly after the opening bell.
There are no Fed officials scheduled to speak today but there is a 2-Year Treasury Note auction at 1:00 p.m. ET that could impact the yield curve and ultimately move the equity markets in the afternoon.
Aside from those potential catalysts, any further developments regarding the trade war or coronavirus infection rates will be closely watched as the market continues to look for direction with the S&P being tightly rangebound for the last week.
“I’m getting concerned that the market is under-appreciating the risk that Trump loses,” said veteran trader and founder of Sevens Report Research Tom Essaye on Yahoo Finance’s The First Trade. Click here to watch the full interview.
