What’s going on in the world…
Market opens higher the morning after President Trump announced the US is exiting the Joint Comprehensive Plan of Action (JCPOA), otherwise known as the “Iran Deal.” This certainty leads to so much more uncertainty. So far, European nations in the deal as well as Iran have decided to stay. Crude prices continue to elevate with the increased probability of Iranian oil coming off the Market in response to new sanctions. It’s being reported that the 3 American captives in North Korea have been released. This comes ahead of the highly anticipated meeting between Trump and Kim, at a date and location that have apparently been determined, but not yet reported. Global Markets were mixed overnight. Interest rates are on the rise again, with the 10-Year Treasury yield back above 3%. Inflation has certainly picked up. It’s not just Oil. The price of money is rising. Financial stocks are showing more signs of strength. Disney reported a solid double-beat yesterday, but the stock is slightly lower in early trading as Comcast seems to be digging in on a bidding war for the Fox assets Disney covets. Energy is up 12% in a month, by far the best performing sector in May. The volatile price action continues. The S&P is back in the green for 2018 this morning.
Have a great morning,
Mike Frazier
