Financials –
As you are probably aware, the Trump Administration lost its bid to reinstate its travel ban. This is likely to head further up the chain through the court system to the Supreme Court. He is using up a lot of political “capital” on this one item, so it will be interesting to see how this progresses. It certainly isn’t over yet. Separately Trump promised a “phenomenal” tax plan to be announced in the coming weeks, which is certainly something the market will get excited about.
China reported trade data overnight and the market seems to be impressed with the news. January exports were up 7.9% which is the strongest gain in almost two years. Exports to the US were up 9%. Imports were up 16.7%.
The monthly wholesale trade numbers don’t typically get a ton of attention because they’re not usually market movers, but I think it is worth pointing out this morning to show a change in the trend has developed. As you can see in the chart, the ratio of inventories to sales had grown very large over the past few years. In theory this could be negative as it means product is not moving and it could result in lower production and/or imports. As you can see this trend has reversed in recent months. If this were to continue in the months ahead, it would be a net positive for economic activity going forward.
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