The stock market doesn't have much of a spring in its step this morning. On the contrary, it is limping into the start of today's session, having been kicked in the shin by trade matters.
Currently, the S&P futures are down 22 points and are trading 0.8% below fair value. The Nasdaq 100 futures are down 119 points and are trading 1.6% below fair value. The Dow Jones Industrial Average futures are down 174 points and are trading 0.6% below fair value.
Those trade talks that were reportedly possibly going to happen in late May are now reportedly possibly not going to happen. This impression was formed for the market late in Friday's session, yet there wasn't any repair work done over the weekend.
Instead, President Trump declared over the weekend that a trade deal with China can't be a 50-50 trade deal.
That's one trade matter creating some angst this morning. Another trade-related matter is the effective ban on Chinese firm Huawei buying parts and components from U.S. companies without an approved government license to do so.
Reuters is reporting that the Commerce Department might temporary roll back this provision for 90 days so Huawei can help keep existing network operations and equipment functioning, yet it would remain in effect on goods Huawei would need to build new equipment.
Qualcomm (QCOM), Intel (INTC), Broadcom (AVGO), Xilinx (XLNX), and Alphabet (GOOG) have all started to comply reportedly with the new executive order.
On a related note, Lumentum (LITE) warned of a fiscal fourth quarter earnings shortfall, citing the impact of the new order and the company's intention to comply with it. Market participants, therefore, are sensing earnings warnings from other suppliers are on the way.
That expectation has cast a pall on general investor sentiment along with some tough-minded talk from President Trump on the Iranian situation.
Mr. Trump previously said he does not want a war with Iran, but he tweeted over the weekend that, "If Iran wants to fight, that will be the official end of Iran." The market might see this remark as mere bluster; nonetheless, it hasn't necessarily helped defuse the geopolitical tension on this front.
In other developments, T-Mobile (TMUS) and Sprint (S) are reportedly going to make concessions that improve the chances of their proposed merger being approved by regulators; Wedbush cuts its price target on Tesla (TSLA) to $230 from $275; and Japan posted a much better-than-expected 2.1% annualized increase in first quarter GDP.
Little else seems to matter, though, as the broader market remains fixated on trade matters with China that appear far from being fixed.