The delay of US tariffs until December on China manufactured electronics and computers brought out the bulls yesterday, but new Chinese factory output and retail spending shows the world’s 2nd largest economy is slowing.
Meanwhile Germany’s economy shrank and is now teetering on a recession. The US 10-year Note has slipped into inversions below the 2-year notes for the first time since 2007. This inversion indicator has signaled almost every US recession over the last 60 years.
In corporate news, the FAA has banned 450 thousand Apple MacBook Pros sold between Sep 2015 and Feb 2017 from all flights. The computers are a safety risk as their batteries which may overheat. Earnings include CSCO, M, LK, and A.
The economic calendar is light with Import and Export Prices @ 8:30am ET and Oil @ 10:30am ET. Volatility remains high. Size bias is short into the US session open.