A bunch of banks reported this morning, and for the most part, the companies posted solid results against consensus estimates; although, there are still things gnawing concerns.   I think there is value there, but unlocking it is tough.  Banks haven’t done anything to distinguish themselves, and most have gotten away from good old fashion banking. 

The story of the session beyond strong consumer spending is transportation.  The news is more of a surprise considering the financial and mainstream media have been harping on the crushing blow tariffs would level on the American consumer.  It hasn’t materialized (and the chorus from the experts, most of which are motivated by disdain for the president, is “wait for it”).

 I wrote about transportation last week, and since, there is a noticeable effort to turn the industry around.

• JB Hunt (JBHT) pushing logistics and truckers
• JetBlue (JBLU) lifting airlines
• Canadian Pacific Railway (CP) has rails gaining steam

Trump’s Nemeses 

Meanwhile, the lackluster session is now under pressure, as President Trump has chimed in on China and U.S. interest rates.  He stated there is still a long way to go with China, and he could still impose 25% tariffs on $325 billion on imported goods if he “wanted to.”  He mentioned that President Xi can put interest rates anywhere he wants, which reveals his growing frustration with Jay Powell and current U.S. rate levels.

The United States has room for lower rates visa vie the rest of the world:

• 2.5% United States
• 4.6% China
• 0.0% Europe
• 0.75% United Kingdom
• -0.1% Japan
• -0.25% Sweden
• -0.75% Switzerland