Posts

Why Tech Is Outperforming Again

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What’s in Today’s Report:

  • Why Tech Is Outperforming Again
  • A Correction to the “Is FAANGM Now GARP?” Section
  • Consumer Confidence – Chart

Stock futures are trading modestly higher this morning while international markets are mixed as inflation and taper fears continue to ease ahead of key economic data due later in the week.

The only economic report overnight was the French Business Climate Indicator which came in at 107 vs. (E) 105 but the release did not materially move markets.

Today, there are no economic reports due to be released and just one Fed official is scheduled to speak: Quarles (10:00 a.m. and 3:00 p.m. ET).

There is a 5-Yr Treasury Note Auction at 1:00 p.m. ET and as has been the case for most of this year, any significant surprises in the results could move both stock and bond markets significantly, but that is less likely today given focus is on Friday’s inflation data.

Tom Essaye Quoted in Bloomberg on May 24, 2021

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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 Barrons on May 7, 2021

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Roku Pops, Peloton Jumps, and Tech Is on a Tear

“Today’s focus will be on the Employment…” writes Tom Essaye, founder of Sevens Report, before the jobs report emerged. Click here to read the full article.

Tom Essaye Quoted in Fintech Zoom on March 5, 2021

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“While the S&P 500 may be facing structural head-winds due to tech weakness, much of the rest…” Tom Essaye, founder of Sevens Report, said according to CNBC. Click here to read the full article.

 

Tom Essaye Interviewed with Yahoo Finance on August 4, 2020

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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.

The New Stimulus Bill (Good, Bad, Ugly)

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What’s in Today’s Report:

  • Technical Take: Finally a Breakout
  • The New Stimulus Bill: Good/Bad/Ugly

Markets are risk-on this morning with U.S. stock futures tracking European shares higher after EU leaders finalized a $2T stimulus package overnight while Q2 earnings from IBM topped expectations after the close yesterday.

The EU spending package, which importantly incorporates EU bonds, still needs to be passed by the EU Parliament and may not begin to take effect until mid-2021.

Looking into today’s session, there are no economic reports to watch and no Fed officials are scheduled to speak however the earnings calendar picks up considerably.

Companies reporting Q2 results today include: KO ($0.40), LMT ($5.71), PM ($1.09), and SYF ($0.04) before the open and SNAP (-$0.09), UAL (-$9.13), TXN ($0.87), and COF (-$1.25) after the close.

Tom Essaye Quoted in CNBC on July 10, 2020

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Tom Essaye, editor of the Sevens Report, said Friday that even the S&P 500 has held onto its week-to-date advance in large part thanks to Microsoft, Amazon and Apple. He and others have…Click here to read the full article.

Tom Essaye Quoted in Bloomberg on July 21, 201

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“We will start to get results from some of the big multi-national industrials and tech firms, which should shed more light on the effects of the trade war…” Tom Essaye who founded “The Sevens Report” newsletter, wrote in a note to clients. Click here to read the full article.

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Tom Essaye Quoted in MarketWatch on May 30, 2019

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Tom Essaye, president of the Sevens Report, said in a Thursday note to clients that trade on Wednesday “somewhat shockingly saw outright gains by China ETFs and emerging market ETFs along with banks. That flies in the face of…” click here to read the full article.

Computer chips

Technical Tipping Point

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What’s in Today’s Report:

  • Technical Update – We’ve Reached the Tipping Point
  • Why Copper Really Rallied Yesterday

Futures are slightly lower and international markets were mixed overnight as investor focus is shifting to today’s release of the January FOMC Meeting Minutes.

Japanese Exports in January were worse than feared (-8.4% vs. E: -6.1%) while the British CBI Industrial Trends Survey was 6 vs. (E) -5 but neither release moved markets o/n.

There are no economic reports in the U.S. today however the European Commission releases Flash Consumer Confidence data for February (10:00 a.m. ET) and given the recent string of underwhelming EU data points, another bad number could weigh on EU (and to a lesser extend U.S.) stocks into the European close.

The big event today will be the release of the January FOMC Meeting Minutes at 2:00 p.m. ET. Investors will be looking for any further clues as to the Fed’s plans for the balance sheet as a dovish adjustment is one of the few potentially bullish catalysts left for this stock rally right now.

Other than the Fed, U.S.-China trade negotiations continue in Washington however a deal is largely priced in and the talks are now a risk to the market as any “bad news” regarding the trade war would likely hit stocks hard.