What’s in Today’s Report:
- Why Stocks Dropped (New Reason) and How Markets Stabilize
- Weekly Market Preview
- Weekly Economic Cheat Sheet (CPI Wed. and lots of data Friday)
Futures and global markets are modestly lower due to momentum from Friday’s sell off.
News over the weekend was actually net positive as U.S./Chinese officials implied the Huawei CFO arrest was separate from trade, while China signaled it will begin buying U.S. soybeans and energy again.
Economically, Chinese exports missed estimates (5.4% vs. (E) 10.0%), although that number is very “noisy” and it’s not moving markets this morning (the Chinese economic data this Friday is more important than the trade balance).
There’s only one economic report today, JOLTS (E: 7.0M), and no Fed speakers so focus will remain on geo-political headlines (trade) and we should continue to expect more volatility. That said, the market is now deeply oversold in the short term, and if tech can stabilize and rally early, markets can bounce.