Important data on the consumer and manufacturing is released in the week ahead, and investors are watching to see what it says about two key parts of the economy as new tariffs go into effect on Chinese goods.
On Friday, stocks erased steep losses and bounced higher after both Treasury Secretary Steven Mnuchin and Trump called the first negotiating session following new tariffs"constructive." "The odds of something going wrong are much higher today than they were last Friday, when there was pretty much consensus that a [trade] deal was going to be done," said Ed Keon, chief investment strategist at QMA.
Whether the Chinese have changed their view, or their lack of agreement on some issues is just posturing is yet to be seen, Keon said.
Does anyone really believe trade is having any impact on investors in this market. Didn't we have a first round of tariffs a year ago, and the market didn't care.