Nearly all the major equity market indices made a new high yesterday on the back of a bi-lateral trade announcement with Mexico. It is too early to say if Canada is going to the table, but clearly the sentiment regarding a possible “trade war” has diminished. This is just one reason we never react to political turmoil, and try to stay focused on the intermediate-term fundamental backdrop of low inflation, neutral Fed, and positive Earnings Per Share (EPS) releases.
A trio of economic data releases headline Tuesday, highlighted by the first of three major consumer-focused releases this week with the Conference Board Consumer Confidence release at 10 A.M. EDT.
This release will be the first look for investors at how August’s rising geo-political uncertainty and emerging currency crisis has impacted the U.S. consumer, if at all. We continue to believe that investors will base their spending habits and perceptions of the U.S. economy on labor market data and stock prices rather than political unrest and things such as the Turkey currency crisis.
Also due out today are the S&P CoreLogic Case-Schiller Index and the Richmond Fed Manufacturing Index.
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