Mike’s Morning Brief: A fast-break rundown of what’s going on.
Market opened in the green as the whipsaw action continues on Wall Street. DOW is back over 22K. Volume has been on the light side, typical for this time of year. Earnings Season is coming to an end, and the results have been quite solid, which should keep a floor under this Market. European GDP grew 2.2%, providing strength for the global economy. NAFTA talks begin Round 1 today. The 1990’s trade agreement got a lot of publicity during the election and the President didn’t like it. Speaking of the President, he had a press conference yesterday that created a firestorm of criticism and the divide in this country has not been this wide in decades. More CEO’s are leaving his council. Geopolitics continue to be a major issue. With North Korea, Russia and Venezuela, many around the world would say the US has become the biggest geopolitical risk. Think about that for a minute. The Fed releases its July meeting minutes today. The US economy is in solid shape. Another rate hike might or might not occur by year’s end. The Market is pricing in just a 47% chance. Interest rates keep ticking up with the 10-Year Treasury yield at 2.27%. Oil prices are higher in early trading, with WTI holding $47 but can’t seem to get thru $50. Gold is lower after a strong move last week. Stocks are going through another grinding period. Last week’s shakeout has yet to be resolved. This is the most bizarre political environment I’ve seen, perhaps ever. We are prepared for more downside price action. Keep those belts buckled. There is more turbulence ahead.
Have a great morning,