Mike’s Morning Brief – July 17, 2019

What’s going on in the world…

Market opens flattish again as earnings continue to pour out. BofA reported a solid Q2 this morning. The consecutive daily gains streak was broken yesterday as stocks take a breather on next to no volume. The DOW has been the outperformer of late, while both the S&P and NAS were down 0.5% yesterday. The S&P held 3K. President Trump’s comments that a trade deal with China is still a long ways out sort of tapped the brakes on the Market. That said, it’s all been talk all along which has led to a 20% rally while signs of complications have barely put a dent in stocks. The Fed is helping out here, providing ample liquidity to the system. Trade tensions are putting pressure on the global economy and seemingly forcing the Fed’s hand on rate cuts. While a trade deal with China seems to be dragging, a deal with Japan appears imminent. AT&T is in investment mode as it gears up for the 5G rollout. The Dollar is weaker. Gold is higher. Interest rates are ticking down with money edging back into Bonds. Crude is up marginally, with WTI at $58. This feels like a setup for something big. Call it the calm before the storm.

Have a great morning,

Mike Frazier