U.S. stocks quickly reclaimed lost ground after the U.S. and Mexico said tariffs against their trading partner would be paused for one month. Trump made some typical throw away comments around the position with Mexico overnight: “We’ve agreed to talk and consider various other things. We haven’t agreed on tariffs yet, and maybe we will, maybe we won’t, but we have a very good relationship.” There’s still plenty to play out on the tariff front but at least the new president is prepared to talk and if he appears to get what he wants tariffs could be shelved.
Good old fashioned earnings season could still end up dictating proceedings this week, with 40% of the S&P500 delivering quarterly results. Monday was quiet in terms of stock news with Tyson Foods up ~2% after the poultry and beef giant’s fiscal first quarter results exceeded expectations and Triump shares soared ~34% following the news that the aerospace services supplier would be acquired by affiliates of Warburg Pincus and Berkshire Partners
We remain keen to buy dips in US stocks but so far the pullback hardly registers
MM is neutral toward the S&P500 ~6000
Add To Hit List
