What’s in Today’s Report:
- U.S./China Trade Update: What’s Priced in Now?
- One More Important Stat on Corporate Buybacks
Futures are modestly higher as the Chinese Ministry of Commerce said the U.S. and China have agreed to existing tariff reduction in “phases.”
There were no further details on the timing or conditions that would accompany tariff reduction, however, and that’s tempering the rally somewhat.
Economically, German Industrial Production declined but slightly beat estimates (-0.6% vs. (E) -0.7%).
Today the only notable economic reports are Jobless Claims (E: 220K) while we also have two Fed speakers: Kaplan (1:05 p.m. ET), Bostic (7:10 p.m. ET), but none of that should move markets.
Instead, the focus will remain on the U.S./China trade, and if the U.S. confirms this “tariff reduction in phases” statement by the Chinese, then we could see the S&P 500 make a run at 3100.