In a report on Wednesday, Thomas Essaye of Sevens Report Research said “Tuesday was a textbook oversold bounce following Monday’s…” Click here to read the full article.
Futures are modestly higher thanks to continued momentum from Tuesday’s…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
Tom Essaye, founder and president of Sevens Report Research, joins BNN Bloomberg with his market outlook. He says he’d buy… Click here to watch the full interview.
Tuesday, markets seemed to calm, with equity futures rising. Equity futures are…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Price action is mixed across asset classes this morning as equity futures are cautiously rebounding with EU shares but bond yields made new lows amid lingering Delta variant fears.
Economically, German PPI fell to 1.3% vs. (E) 1.1% in June, down from 1.5% in May which offers some new support for the transitory inflation thesis.
Economically, there is one report on the real estate market today: Housing Starts and Permits (E: 1.590M, 1.700M) but it should not have an impact on stocks or bonds, and no Fed officials are scheduled to speak.
That will leave trader focus on earnings early with: ALLY ($1.49), PM ($1.54), TRV ($2.35), and SYF ($1.51) reporting Q2 results ahead of the bell and NFLX ($3.16), UAL (-$4.17), IBKR ($0.83) reporting after the close.
Outside of those potential catalysts, the broader market focus remains on the latest developments regarding the Delta-variant of COVID-19 and any subsequent restrictions or lockdowns that may be announced around the globe.
As has been the case in recent weeks, the stock market will likely react to moves in bonds, so if yields begin to extend this morning’s early drop amid new risk-off money flows, expect volatility to remain elevated. Conversely, if bond yields begin to recover meaningfully, then stocks would likely follow, potentially rising back towards Friday’s closing levels.
What’s in Today’s Report:
Stock futures are sharply lower along with most international equity markets this morning while bond yields are extending recent declines amid new COVID-19 concerns.
Japanese Prime Minister, Yoshihide Suga, issued a state of emergency for Tokyo overnight and the latest reports suggest spectators will be banned from the summer Olympics which is weighing heavily on investor sentiment today.
10-Year yields are down another 7 basis points in early trade while travel and leisure shares are leading markets lower in the pre-market, underscoring concerns about the state of the economic recovery and emerging concerns surrounding the Delta variant of COVID-19.
Today, there is just one economic report: Jobless Claims (E: 353K) and no Fed officials are scheduled to speak.
Investors will be looking for a continued drop in the weekly jobless claims data but focus will likely be on COVID-19 trends and the latest lockdown developments as the health of the economic recovery is reassessed.
What’s in Today’s Report:
U.S. stock futures are trading modestly higher with tech shares outperforming (Nasdaq futures are at a fresh record) as bond yields continue to fall to multi-month lows ahead of the Fed Minutes release this afternoon.
Economically, German Industrial Production fell -0.3% vs. (E) +0.5% in May, adding to a recent string of disappointing global economic data that has been pressuring bond yields.
Today, there is just one economic report to watch: May JOLTS (E 9.30M), and while it’s a dated release, some components of the report could shed some new light on the current trends of the labor market.
Looking to the Fed, the release of the June FOMC Meeting Minutes (2:00 p.m. ET) will be the main focus today as investors look for further clarity on the Committee’s taper timeline and eventual plans for raising rates. Additionally, Atlanta Fed President Raphael Bostic speaks at 3:30 p.m. ET.
Markets will want ‘Goldilocks’ data to start the quarter, in that the numbers show solid…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Stock futures are little changed with investors focused on OPEC+’s failure to reach a new output policy agreement yesterday while economic data was mixed overnight.
OPEC+ called off a follow-up meeting yesterday after the UAE would not agree to extending production cuts through 2022 which drove oil to new multi-year highs in overnight trading as current cuts will remain in place by default, deepening supply deficit expectations for the second half of the year.
Economically, Final Composite PMI reports were mostly as expected while EU Retail Sales topped estimates but none of the data materially moved markets overnight.
Today, there is just one notable economic report to watch: ISM Services Index (E: 63.5), and no Fed officials are scheduled to speak. That will leave investors focused on the oil market in the wake of the OPEC+ developments as well as awaiting any news on infrastructure as the calendar is otherwise fairly quiet as we start the holiday-shortened trading week today.
This is the first quarter where we can honestly say it looked more like the…says Tom Essaye, a former trader who writes the Sevens Report. Click here to read the full article.
