The major stock market averages opened mixed but quickly turned positive. The Dow is currently up 46 pts and the SPX is up .3%. The telecom sector is up nearly 1% in early trading, recovering some of its recent correction. The market is expecting a federal judge to approve AT&T’s proposed acquisition of Time Warner tomorrow. Healthcare, transports and retailers are also in the green. The VIX Index jumped 2% to 12.4 but VIX July futures are down around 14 after having spiked to 16 a couple of weeks ago. So despite all the negative geopolitical headlines investors really aren’t spooked. Commodities are mixed today. Gold is up today but is flat year-to-date. Copper is giving back some of its recent gains. WTI crude oil is up modestly to trade around $66/share. Bonds are down modestly in early trading. The 5-year and 10-year Treasury yields are up around 2.79% and 2.95%, respectively.
The G-7 meeting in Canada was a throw-away. Here’s how Bloomberg described the result: “The Group of Seven ended with an explosion—Donald Trump unloaded on Justin Trudeau and washed his hands of the summit.” The other G-7 members released a post-meeting statement but Trump refused to endorse it. CNBC’s Jim Cramer had an interesting take on investors’ reaction to Mr. Trump’s tough stance on trade. He says the stock market didn’t open lower this morning because Wall Street agrees with the president. “By not being down, the market is saying, ‘Trump’s right.’ It’s not saying [trade] doesn’t matter. It’s saying Trump’s right.” Right on cue, billionaire investor Nelson Peltz is clearly siding with the president. “The president is doing some really brave things.” Mr. Peltz believes Trump is a good negotiator and won’t push the country into a trade war.
President Trump’s summit with North Korean dictator Kim Jong Un got underway in Singapore. The White House is saying talks are progressing “more quickly than expected.” So with zero details, the new media is full of worthless conjecture today.