Mike’s Morning Brief: A fast-break rundown of what’s going on.
Market opens lower as the issues at the White House continue to escalate and the severity of the situation is growing by the minute. For most of the 7 months since President Trump was elected, the Market has taken his controversial and unconventional behavior in stride. The focus has been on earnings and economic acceleration. It feels a little different now, and the controversy with classified intelligence and Russia is catching up to the President. The Market is likely anticipating the prospects for tax reform are slipping away while the White House scrambles to maintain composure. Interest rates are lower, as money flows to Bonds for some safety. Gold has been catching a bid as well. The Dollar is weaker this morning, and has been for a while. Oil is slightly higher in early trading with WTI around $49. Earnings Season is basically over, and was very solid, with the S&P growing earnings over 13% in Q1. But the focus will naturally turn towards Geopolitics, which will bring more volatile price action to the mix. So many investors haven’t trusted this rally and are shocked that the Market has gone up as much as it has this year. There hadn’t been a 1% decline on the S&P in 2 months and only a handful since the election. That changed today. Tighten those belt and hang on for the ride.