Tom Essaye Quoted in Barron’s on June 8, 2021
Wendy’s Joins the Meme Stocks, Marvell Is Rising, and Tech Stocks Are Gaining
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Why the JOLTS Report Matters to Markets
What’s in Today’s Report:
- Why the JOLTS Report Matters to Markets
Stock futures are little changed this morning while overseas markets were down modestly overnight as a sense of trader paralysis grips global markets ahead of key catalysts due in the back half of the week.
Economically, Chinese PPI hit 9.0% vs. (E) 8.3% in May, the hottest reading since 2008, however, May CPI was 1.3% vs. (E) 1.5%, keeping inflation fears relatively subdued.
There are no market moving economic reports on the calendar for today and no Fed officials are scheduled to speak however the Treasury will hold a 10-Yr Note auction at 1:00 p.m. ET.
The Treasury auction could move markets today but only if there is a big surprise in the results as markets are more likely to continue to churn into tomorrow’s CPI report and ECB Announcement.
Inflation Expectations Dashboard
What’s in Today’s Report:
- Sevens Report Inflation Expectations Dashboard
- Chart: Gold Holds Key Trend Support
Stock futures are wavering between gains and losses this morning as traders digest mixed economic data and look ahead to a key inflation report due later in the week.
Economically, Japanese GDP was not as bad as feared in Q1 but German Industrial Production missed estimates as did the U.S. NFIB Small Business Optimism Index which is weighing modestly on sentiment this morning.
There are two economic reports to watch in the U.S. today: International Trade in Goods and Services (E: -$69.0B) and JOLTS (E: 8.045M). The latter will be the more important to watch as investors continue to look for clues regarding the state of the labor market recovery.
No Fed officials are scheduled to speak today however there is a 3-Yr Treasury Note auction at 1:00 p.m. ET and a weak outcome could rekindle taper fears with Thursday’s CPI report coming into focus.
Jobs Report Preview
What’s in Today’s Report:
- Jobs Report Preview: Two Sided Risks for the Market
Futures are modestly lower following mixed economic data while the Fed announced it’s winding down one of its pandemic era support programs.
Service PMIs for May were mixed as the Chinese PMI missed estimates while the EU & British PMIs were in-line with expectations, but none of the data is altering the expectation that the global economic recovery is on going.
The Fed announced it’s going to start selling assets from the “Secondary Market Credit Facility” which was the program the Fed used to buy corporate bonds to stabilize markets during March/April of 2020. This has nothing to do with QE, but it is a general reminder that we are seeing central banks removing market support as society returns to normal, and it’s a tangential reminder that tapering of QE is coming at some point.
Today’s focus will be on economic data as we get several notable reports today: ISM Services PMI (E: 63.1), Jobless Claims (E: 400k), and ADP Employment (627k). Generally speaking, markets will want to see “Goldilocks” data from all three reports – close to or better than expectations but not so good they make the Fed think more about tapering. We also have three Fed speakers: Bostic (12:30 p.m. ET), Harker (1:50 p.m. ET), and Quarles (E: 3:05 p.m. ET) but none of them should move markets.
Tom Essaye Quoted in Barron’s on June 1, 2021
Stocks End Mixed After Another Inflation Red Flag
Tom Essaye Quoted in Barron’s on May 25, 2021
Shake Shack Pops, Domino’s Drops, and the Stock Market Is Rising
U.S. stock futures are extending yesterday’s gains this morning as easing inflation concerns…writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
Tom Essaye Quoted in Bloomberg on May 24, 2021
Tech Leads Gains in Stocks as Inflation Fears Ease: Markets Wrap
Until then, expect a more volatile market, but at this point, strong policy support for stocks remains very much in place, and that’s a good thing…according to Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here to read the full article.
Tom Essaye Quoted in ThinkAdvisor on May 24, 2021
Cathie Wood Trims Her Biggest Stakes as Ark Funds Stumble
This is an evolution a bit — Ark accepting it’s a large fund-family now, it makes sense that especially in some of the smaller cap names they are reducing…said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here to read the full article.
Tom Essaye Quoted in Barron’s on May 20, 2021
Virgin Galactic Soars, Merck Falls, and Stocks Are Down Again
“Futures are marginally lower as markets digested the slightly hawkish FOMC minutes,” writes Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
Tom Essaye Quoted in Bloomberg on May 23, 2021
Nasdaq 100 Rallies 2% as Inflation Concerns Ebb: Markets Wrap
Inflation fears will remain a headwind for stocks until it becomes clear that price pressures are temporary. “Until then, expect a more volatile market, but at this point, strong policy support for…” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here for the full article.