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Is the Pullback Over?

What’s in Today’s Report:

  • Is the Pullback Over?
  • Weekly Market Preview (Can the rally keep going?)
  • Weekly Economic Cheat Sheet (Chinese data is key this week)

Futures are modestly higher on the avoidance of Mexican tariffs, although trade news was more mixed than good this weekend.

On trade, positively the 5% tariff on Mexican exports to the U.S. was avoided. Negatively, and more importantly, there was no progress on U.S.-China trade at the G-20 Finance Ministers meeting and no U.S.-China trade talks are planned before the G-20 meeting later this month.

Economic data was also mixed as Chinese exports slightly beat estimates but imports badly missed, while British GDP and Industrial Production also underwhelmed.  So, like the trade news from the weekend, there was a positive event, but on the whole the results were more mixed than good.

Today there are no material economic reports so focus will remain on the news wires and any trade related headlines.  Anything that implies renewed talks between the U.S. and China will likely extend this rally and test resistance at 2900 in the S&P 500.