Stocks have started the day weaker, failing to continue to build upon the positive momentum the market experienced yesterday. The weakness in the market today is being blamed on President Trump stating there is little hope that the US will delay an increase in tariffs on products imported into the United States from China. The 10% tariff is scheduled to move to 25%, which will deter a significant amount of imports being purchased by US buyers. Overall, this is a negative thing for Americans’, as it will drive prices higher on many of the goods US consumers purchase. This will add inflationary pressure to the market, which is not good for mortgage interest rates.
The recent announcement from GM stating they intend to lay off up to 15% of their salaried workforce, has sent tremors through the markets and has put President Trump on the defense. Prior to being elected, he promised to bring back many of the car manufacturing jobs that have been lost over the past decade. This announcement has created an uptick in criticism towards the President. In turn, he announced that he is considering eliminating electric car subsidies for GM. With many car companies now focusing on the transition out of gas engines into electric, this could be more of a trend going forward.
With stocks struggling, there is no immediate need to rush in and lock. However, stocks remain just beneath an important ceiling of overhead resistance, therefore, the safe play is to maintain a locking bias.