We are in the midst of summer doldrums. Markets reading tariff headlines and reacting to mounting trade war.
I prefer to call it a trade tariff tiff, since it’s all blather as no country will stop trading with the US. While the markets reeled over the newest $200B in tariff against China, this will not be enacted until mid-August, so there is plenty of wiggle room for it to work out prior to the deadline.
The markets seem to agree with this premise since on Thursday stocks are retracing back almost 90% of Wednesday’s loses.
Short post today as there is little else going on.
On Friday we get the monthly employment report from the government for June and be able to access the first six months of 2018.
Last month well before the 8:30am release time President Trump tweeted “Look forward to seeing the employment numbers at 8:30 this morning.” The tweet moved the market leading many to say he should not have done so.
Wall Street is expecting gains of 191,000 jobs for June, with the unemployment rate to remain at 3.8 percent. In May the jobs number was 223,000, which resulted in Trump’s tweet.
So if there is no tweet on Friday morning, then the Street may sell of prior to the release. This is the reason for not breaking the embargo by hinting a good number is about to come out.