Good Morning, Happy Monday to those who celebrate. As cliché as it sounds, I can’t believe we are already into June!
Over the weekend, both the US and China accused the other of violating their recent trade agreement. We also got news that President Trump planned to increase tariffs on steel and aluminum to 50% from 25%. With all the noise around trade and tariffs we have experienced the last few months, it’s important to note that the S&P 500 is still within 5% of its all-time high. Given the resilience we have seen at the corporate level as it relates to earnings, I continue to like these knee jerk spats of market volatility as buying opportunities – especially within big cap technology names. As part of a busy week of data, we get the May jobs report this Friday. The path forward with interest rates is an ongoing debate that will likely intensify should we begin to see a slowdown in the jobs market. All things considered, I think a positive change in trade sentiment remains the biggest opportunity for stocks to grind higher. Please continue to reach out with questions.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management. A look at the big week of data and bond prices, are among the topics.
Have a great week!