Updated Market Outlook

What’s in Today’s Report:

  • Updated Market Outlook (Post U.S./China Trade Breakdown)
  • Weekly Market Preview
  • Weekly Economic Cheat Sheet

Futures are modestly lower following an uneventful weekend as investors digest Friday’s negative trade headline (that U.S./China trade discussions have been suspended).

On trade, there was no new news over the weekend, but several U.S. tech firms have stopped conducting business with Huawei, per the Commerce Department decision, and that’s just further escalating the U.S./China trade conflict.

Economically, there were no market moving reports (Japanese GDP was stronger than estimates but the details weren’t great).

There are no economic reports today but there are multiple Fed speakers, most important of which is Powell (7:00 p.m. ET), although he’s not expected to make extensive comments on policy.  Other Fed speakers today include:  Bostic (8:50 a.m. ET), Harker (9:30 a.m. ET), Williams & Clarida (1:00 p.m. ET).

Given the lack of data and important Fed speak, trade headlines should drive markets today and any formal retaliation by China for the Huawei decision will make the trade situation worse, and likely pressure stocks.