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Tyler Richey Appeared on TD Ameritrade Network on May 30, 2019

Tyler Richey, co-editor of the Sevens Report sat down with Ben Lichtenstein from TD Ameritrade Network to talk about oil, corn futures, energy market and more…Click here to watch the full interview.

TD Ameritrade interview clip

Why Downside Risks Are Building in Stocks

What’s in Today’s Report:

  • Why Downside Risks Are Building in Stocks
  • Weekly Market Preview
  • Weekly Economic Cheat Sheet (Friday is an important day)

Futures are modestly lower following a generally quiet three day weekend, as investors digest last week’s deterioration in economic data and U.S.-China trade relations.

Economic data was sparse overnight and the only notable report was German GfK Consumer Climate, which slightly missed expectations (10.1 vs. (E ) 10.4).  There was no material economic data out Monday.

On trade, Trump’s trip to Japan was a general non-event and there were no new developments (positive or negative) on U.S.-China trade.

Today we have a few housing numbers including Cash-Shiller HPI (E: 2.5% y/y) and FHFA HPI (E: 0.3% m/m) as well as Consumer Confidence (E: 129.8), but none of those should move markets materially.

Instead, focus will be on the news wires for any updates on U.S. – China trade and on support in the S&P 500 at 2800, which is becoming an increasingly important level.

Updated Market Outlook

What’s in Today’s Report:

  • Updated Market Outlook (Post U.S./China Trade Breakdown)
  • Weekly Market Preview
  • Weekly Economic Cheat Sheet

Futures are modestly lower following an uneventful weekend as investors digest Friday’s negative trade headline (that U.S./China trade discussions have been suspended).

On trade, there was no new news over the weekend, but several U.S. tech firms have stopped conducting business with Huawei, per the Commerce Department decision, and that’s just further escalating the U.S./China trade conflict.

Economically, there were no market moving reports (Japanese GDP was stronger than estimates but the details weren’t great).

There are no economic reports today but there are multiple Fed speakers, most important of which is Powell (7:00 p.m. ET), although he’s not expected to make extensive comments on policy.  Other Fed speakers today include:  Bostic (8:50 a.m. ET), Harker (9:30 a.m. ET), Williams & Clarida (1:00 p.m. ET).

Given the lack of data and important Fed speak, trade headlines should drive markets today and any formal retaliation by China for the Huawei decision will make the trade situation worse, and likely pressure stocks.

 

Tom Essaye Interviewed with Yahoo Finance on May 13, 2019

Tom Essaye interviewed with Yahoo Finance. A very timely chat on tariffs, fear within the market, what to expect with this market volatility and more…Watch the full interview here.

Tom Essaye Interview with Yahoo Finance

 

Tom Essaye Quoted in CNBC on May 9, 2019

Tom Essaye Quoted in CNBC on May 9, 2019. “Small caps are most sensitive to overall economic growth. I think small caps are declining because…” Click here to read the full CNBC article.

U.S. President Donald Trump and Chinese President Xi Jinping

Tom Essaye Interviewed with Yahoo Finance on May 6, 2019

Tom Essaye joined Yahoo Finance’s Zack Guzman and Heidi Chung to discuss how Trump’s tariff threat could influence global markets. Click here or the video below to watch the full interview.

Yahoo Finance video clip

 

Tyler Richey, co-editor of the Sevens Report Quoted in MarketWatch on May 6, 2019

Tyler Richey, co-editor of the Sevens Report said “As the developments have been digested today, the flurry of Trump tweets are being seen more as a negotiating tactic that has the potential to…” Click here to read the full MarketWatch article.

the base for Saudi Aramco's Natural Gas Liquids plant and oil production

An Update from Dr. Copper

What’s in Today’s Report:

  • An Update from Dr. Copper

Futures are little changed following more U.S./China trade optimism and mixed earnings.

President Trump said he expects to host Chinese Premier Xi at the White House “soon” and a trade deal could be signed in June.

Earnings after the bell were mixed at INTC badly missed, while F and AMZN both posted solid numbers.

There was no material economic data overnight.

Today should be a generally quiet day as the volume of earnings reports subsides (reports we’re watching include XOM ($0.75), AAL ($0.50) and CVX ($1.26)) and are just two economic reports: Preliminary Q1 ‘19 GDP (E: 2.2%) and Consumer Sentiment (E: 97.1).  If GDP is a bad miss (which is unlikely) that might temporarily pressure stocks, but really markets are already looking ahead to next week, which is absolutely full of important macro events and continued earnings.

Tom Essaye Quoted in Fin24 on April 22, 2019

“It’s going to take something else to push the S&P 500 to new all-time highs. That was the main takeaway from last week…”

Tom Essaye

Tom Essaye Quoted in Bloomberg on April 21, 2019

What would it take the push the market to new all-time highs? Tom Essaye quoted on Bloomberg to share his view on the market, U.S. – China trade, Fed and more. Read the full article here.