Stocks are trading lower to begin Monday’s exchange as earnings season kicks off. This week, stalwart U.S. financial institutions will be delivering Q4 results, along with a few other major firms. Wall Street’s focus will most likely shift to Q1 guidance as major U.S. institutions have already reported weaker forecasts due to the ongoing trade spat with China. The S&P500 is up about 3% YTD, and is currently trading at 2,583.85, 0.48% lower.
Treasuries are churning sideways in the AM as investors digest the latest economic data out of China. Although the Trump administration has attempted to rebalance the scales with tariff implementations, China showed a 17% YoY (2017/2018) increase in the trade surplus according to Monday’s report. Exports to the U.S. increased by 11.3%, while imports from the U.S. grew by just 0.7%. Additionally, the U.S.’ current government shutdown became the longest in history over the weekend. It is estimated that anywhere from 0.1 – 0.2 will be lopped off of GDP every week that the government remains stagnant. The US 10-Yr Note is currently trading at 2.6917%, 0.0090 lower.