Here is what you need to know.
- The Trump administration says tariffs on Mexico won’t derail the new NAFTA. Top officials in the Trump administration said, according to Reuters, that the proposed tariffs on Mexican imports were meant to affect immigration talks and that they thought the US-Mexico-Canada Agreement would still be approved.
- Traders are more sure than ever that the Fed’s next move is a rate cut. Traders on Friday were pricing in a 50% chance that the Federal Reserve would cut rates at its July meeting and a 91.4% probability that the central bank would lower rates this year.
- The 10-year yield slides to its lowest level in 21 months. The US 10-year yield is down 2.2 basis points at 2.10%, its lowest since September 2017.
- Wall Street is waking up to ‘peak car.’“The industry is right now staring down the barrel of what we think is going to be a significant downturn,” Bank of America’s John Murphy told a conference last week.
- The stock market’s biggest source of buying power will soon disappear. Buybacks, which have accounted for $US3.7 billion worth of stock-market purchases over the past five years and have been the biggest source of demand over that time, are slowing down, and that could make the next crash even more painful, according to Vincent Deluard, a macro strategist at INTL FCStone.
- Blackstone makes an e-commerce bet. The investment giant has agreed to pay $US18.7 billion for the US logistic assets of Singapore’s GLP, according to a press release out Monday.
- The DOJ is looking into potential antitrust violations at Google. The Department of Justice is investigating Google’s advertising practices and has not yet decided whether to open a case against the company, The New York Times reported late Friday, citing two people.
- Stock markets around the world are lower. China’s Shanghai Composite (-0.3%) paced the decline in Asia, and Britain’s FTSE (-0.26%) trailed in Europe. The S&P 500 was set to open down 0.31% near 2,743.
- Earnings reporting is light. Box reports after the closing bell.
- US economic data keeps coming. Markit manufacturing PMI will be released at 9:45 a.m. ET, and ISM manufacturing will cross the wires at 10 a.m. ET. US auto sales will be announced throughout the day.
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