What’s going on in the world…
Market opens flat as the historic impeachment vote permeates Washington and is spreading beyond. The Market has basically ignored the impeachment proceedings all along, seemingly knowing that it will die in the Senate. It will be interesting to see if there are any bumps or surprises today on Capitol Hill. The S&P closed higher for the 5th consecutive session on Tuesday, marking its longest winning streak in a month. The S&P hasn’t been up six straight days since the Spring. Stronger-than-expected housing data continued to support the bullish case for stocks, but investors continue to wait for more details about a preliminary trade agreement between the U.S. and China. So far, it’s been confusing as China has not committed to much of anything in specificity. FedEx reported another awful Qtr, blaming the weakening global economy, but also admitting they have struggled with internal issues and competition. This is a really smart and capable management team doing a very poor job. M&A is still in the air, with Fiat Chrysler and Peugeot reportedly teaming up to become the 4th largest auto manufacturer in the world. Stocks are higher. Bonds are lower, with yields higher in early trading. The 10-Year Treasury yield is back above 1.9%. Gold and Oil are both flat. The VIX is flat too. Volume is light, and that is expected to continue for the rest of the year.
Have a great morning,
Mike Frazier
