Market opens mixed as the secular Bull Market embarks on its 11th year of existence. It is the longest but not the largest in history. Last week was the worst week for the US Stock Market in 2019. The DOW is getting hit hard at the open as Boeing single-handedly drags the price-weighted average down with the grounding of many fleets around the globe in response to the 2nd crash in a short time. Boeing is down over 10% in early trading, accounting for over 400 DOW points. The S&P and NAS opened in the green. Fed Chair Jerome Powell was on 60 Minutes last night, and reiterated the Fed’s patient approach to monetary policy amidst the slowing growth. Uncertainty is building around a potential trade deal with China and the US. China is reportedly unwilling to schedule a summit without clarity on a deal being reached. At the same time, China is saying the requests from the US will take years to enact. It appears as though a deal could be slowly slipping away. Great Britain will hold an important vote on Brexit tomorrow, setting the course for its future in Europe. The White House will release the 2020 Budget later today, which is reported to include an increase in defense spending. Crude prices are catching a bid in early trading. The Dollar is weaker while interest rates tick up. Stocks are having a good start, except for Boeing.
Have a great morning,
Mike Frazier
