Say what? Stocks have been in a defensive stance as markets wait for the 2pm White House press conference on China. Until a few minutes ago, few knew what Washington was going to do for China’s new security law in Hong Kong. But it looks like Trump is moving towards some sanctions on Chinese financial institutions, along with some graduate student visa limitations; neither look too impactful. The S&P 500 continues to trade above 3000 though, and seems to be more focused on the post virus economy than on China trade… for now. Semiconductors are outperforming thanks to Marvell’s earnings last night, but the broader tape has a defensive tone to it. Mega Tech, Utilities and Treasuries (10-yr) are higher, versus Banks and Energy. With the President speaking soon, and the MSCI rebalance on the close, the scope of the trading day can change over the next two hours.
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