What’s going on in the world…
Market opens lower after yesterday’s gains turned to losses and the major indices closed at the lows of the day. The S&P has been in a defined trading range for months, currently at the high end of that range and just can’t get through the resistance at the 2740 level. It’s heading back down towards 2700. The DOW gave up 25K pretty quickly yesterday. It doesn’t really mean much, more than a psychological big round number. The price of Oil slipped lower yesterday too, which seemed to lead stocks lower as well. The Dollar keeps charging higher, at the highs of the year, which is putting pressure on commodities and exports. The strong Dollar has become a head-wind for stocks. Gold is trying to rise, but it too has been feeling the Dollar’s weight. News that the summit between President Trump and Kim Jong Un might not happen now was the cause of yesterday’s reversal. The likelihood of something getting done was remote, but the momentum for peace was encouraging even if it was ever-so-slightly. We’re back to uncertainty. Uncertainty about North Korea. Uncertainty about Iran. Is the momentum slowing on trade with China? What will the Fed say about the economy and rates in its Minutes to be released today? The Market wants to know and hates uncertainty. Rates are falling this morning. Comcast wants to take Fox away from Disney, as a bidding war is brewing. The global economy is slowing, but is still in decent shape, as is the US. One thing is clear, the high-end consumer likes Tiffany. The universal jeweler reported a stellar Q1, which is sending its stock higher in early trading. The volatility continues.
Have a great morning,
Mike Frazier
