Today features many of the trappings that have rankled the stock market of late. There is U.S-China trade tension; there is Brexit uncertainty; there are iPhone demand concerns; and there is weak price action.
The price action pertains to the futures market, which is signaling a lower start for cash market.
The S&P futures are down 10 points and are trading 0.1% below fair value. The Nasdaq 100 futures are down 43 points and are trading 0.4% below fair value. The Dow Jones Industrial Average futures are down 82 points and are trading 0.1% below fair value.
That negative disposition is being attributed in large part to Apple's (AAPL) negative disposition. Shares of AAPL are indicated 2.0% lower following a Wall Street Journal article that calls attention to reported supply cuts for all three new iPhone models announced in September.
The fallout hasn't been worse, however, because Apple's stock has already dropped sharply on the back of warnings from several suppliers. Nevertheless, there is some added weakness today as the article implies there might have been an additional round of production cuts for the XR in the past week that might not have been captured in the guidance Apple provided on November 1.
Whatever the case may be, the dimming of Apple's halo effect has cast a pall on the futures market.
The same can be said for the latest headlines pertaining to the U.S.-China trade dispute. Over the weekend, Vice President Pence made a fiery speech at the APEC Summit, saying the U.S. has the scope to impose more tariffs on Chinese imports and that the U.S. isn't going to change its course until China changes its ways, according to Reuters.
That view ran in contrast to the one expressed on Friday by President Trump who dangled the possibility that the U.S. may not have to impose additional tariffs on China.
The long and short of the trade rhetoric is that it has everyone guessing what will come next and that uncertainty is weighing on investor sentiment, as well as business sentiment reportedly.
The Brexit issue fits along the same lines, although it tends to get oversold as a major influence on the U.S. market. It's an issue that demands some extra attention in the press these days, but it's not a major issue for the U.S. market - not yet anyway.
The stock market itself, however, clearly has issues. Its biggest issue is the Federal Reserve and how the central bank plans to manage its monetary policy.
Worries about the Fed's current path have given rise to growth concerns that have undercut the market and have stolen the thunder from the third quarter earnings reporting period, which has produced a blended earnings growth rate of 25.7%, according to FactSet.
Retailers will be in the earnings spotlight this week, not to mention the general news spotlight as Black Friday approaches in this holiday-shortened week of trading.
The stock market will be closed Thursday for Thanksgiving Day and will close early at 1:00 p.m. ET on Friday. Trading volume will be thinning per usual as the week progresses as the trappings of the Thanksgiving holiday drive the attention of market participants elsewhere.