Market opens mixed to begin the new month. The DOW has declined six consecutive weeks, something it has not done since 2011. It was the worst May in nine years. The DOW’s Friday close was its lowest since January 29, while the S&P 500 and Nasdaq closed at their lowest since March 8. Stocks opened well off the overnight lows, despite no new news on trade. China and the US are digging in on the Trade War. The Trump administration is opening several other battles, removing India from a privileged-trading program, pushing tariffs on Mexico unless it addresses the southern border and even reportedly considering tariffs on Australia. “Mexico is sending a big delegation to talk about the border. Problem is, they’ve been ‘talking’ for 25 years,” Trump wrote on Twitter. “We want action, not talk. Otherwise, our companies and jobs are coming back to the USA!” That certainly sets the tone for discussions. Mexico said they would not bow to pressure. The Department of Justice is targeting Google and Amazon. Silicon Valley has been under a microscope, and that doesn’t seem to be going away. President Trump is in Great Britain, and he has already ruffled feathers, commenting on Brexit, the Royal Family and the next Prime Minister. He certainly knows how to stir the pot. Apple begins its World Wide Developers Conference (WWDC) today, something that normally would be at the top of the headlines. Oil is lower, the Dollar is lower, interest rates are lower and Gold is higher. Keep those belts buckled.
Have a great morning,
Mike Frazier
