Are Tariffs a Negotiating Tool or Real Risk?
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What’s in Today’s Report:
- Are Tariffs a Negotiating Tool or Real Risk?
- Why Are Tariffs Positive for the Dollar?
- ISM Manufacturing Index Takeaways
- Chart – A Volatility Warning From the VIX Futures Market
Futures are modestly lower as optimism surrounding strong earnings from data software company, PLTR (+20% pre-market), is being offset by simmering trade war fears.
After the close yesterday, news broke that U.S. tariffs on Canada would be paused like those on Mexico (for one month) which was well received by markets.
However, China retaliated against the U.S. with 10% tariffs overnight and opened an antitrust investigation into GOOGL, rekindling trade war fears which is weighing on global investor sentiment in early trade.
Looking into today’s session, there are two potentially market moving economic reports: Factory Orders (E: -0.6%) and JOLTS (E: 8.0 MM). Investors will be looking for more “Goldilocks” data that supports the case for a soft landing.
There are also, two Fed officials scheduled to speak today: Bostic (11:00 a.m. ET) and Daly (2:00 p.m. ET), and several big name earnings releases due out, including PYPL ($1.13), PEP ($1.95), PFE ($0.48), AMD ($1.09), GOOGL ($2.12), CMG ($0.24).
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