The phase one US/China trade agreement is scheduled for a White House signature @ 11:30am ET. Trump called it a “beautiful monster” of a deal. In a joint statement yesterday, Mnuchin and Lightizer warned that many current tariffs on Chinese goods would not rollback. Given China’s slowing economy, there is growing concern that China may not be able to uphold an anticipated $200B of US goods purchases the trade agreement is supposed to entail.
Apple’s (APPL) iPhone security is in the spotlight as Attorney General William Barr once again publicly is pressuring Apple to unlock cell phones for criminal investigations. Trump chimed in with a tweet “We are helping Apple all of the time on TRADE and so many other issues, and yet they refuse to unlock phones used by killers, drug dealers and other violent criminal elements. They will have to stop up to the plate and help our great Country, NOW!”. Apple responded, not true, they have provided substantial assistance to investigating the Pensacola Naval Base shooting.
Earnings include GS, BAC, BLK, PNC, USB, BBT, and AA.
The economic calendar includes PPI and Empire State @ 8:30am ET, Oil @ 10:30am ET and Fed Beige Book @ 2:00pm ET. Fed speakers include Harker @ 11:00am ET and Kaplan @ 12:00pm ET.
Volatility could pick up later today as analysts finally get to evaluate the phase one US/China trade deal to determine if it meets the expectations anticipated by the stock market bulls over the last 2 years.
No Size bias as they showed little interest during Globex.