There wasn’t a whole lot of news in either direction over the weekend over the escalating tariff situation between the US, China, and the ever-growing list of other countries that the current administration has threatened.  As a result, US futures are moving in the path of least resistance (lower), while rates are lower.  That being said, yields and equity futures are off their overnight lows.

It’s a big day for economic data to kick off the week and it’s going to be a busy week in terms of Fed speakers, so if the FOMC was looking for an opportunity to send a message to the markets that they are incorrect in pricing an 88% chance of a cut by September, now is the time to do it.

Please click the link below to read today’s Bespoke Morning Lineup for more of our thoughts on the latest from the latest international manufacturing PMI readings for the month of May as well as an early look how European auto sales are shaping up for May.

With the continued weakness in the equity market last week, the percentage of oversold US stocks is really starting to pile up.  As shown in the chart below, through Friday’s close, nearly 40% of all S&P 500 stocks were trading more than one standard deviation below their 50-DMA. The last time we saw a reading this negative was on January 3rd.

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