The rally today is pretty much across the board as excitement grow for a trade deal with China and a rate cut from the Federal Reserve.

Investors are still mostly comfortable with large caps.

If history repeats, this rally could shift into a higher gear.  I didn’t like the close on Friday – I would like to see buying into the closing bell today.

In other news, and ahead of the Xi talks, Trump is continuing to gain negotiating leverage. He signed a rare earth deal with Malaysia, after signing one with Australia last week.

Additionally, OPEC+ is eyeing a further output hike this Sunday. Since April, they have increased their output targets by over 2.7 million barrels per day, putting downward pressure on oil prices.

So far earnings season is showing more beats than misses. Currently, 84% of reports beat EPS estimates, while 69% beat sales estimates.

The 5-year note auction results were released this afternoon. The auction sold today was worth $74 billion, had a bid-to-cover of 2.38, and a high yield of 3.625%.