The main headline of the day is from CNBC and reads, "Trump says 'devalued' currencies put the US at a disadvantage". US President Trump made two tweets, one of which praised the United States' record-low inflation and the other bashed the Fed for keeping interest rates too high.
The overall tone was very confusing though, especially since Donald Trump attached a Bloomberg article about European tourism to his tweet stating "European landmarks have a question they desperately need answering: How do you stop the tourists from coming?". So when Trump talks about devalued currencies harming the US, is he talking about the US tourism disadvantage? trade? we don't know. Trump does not seem to have considered that inflation leads to currency depreciation, putting his two tweets in direct conflict with each other. The States' low inflation and tight monetary policy is keeping the dollar strong, whereas the loose policy of other countries is devaluing the currencies and forcing interest rates into negative territory (yield on the 5-year German Bund is currently -.29%).
Lululemon will post its first-quarter earnings report tomorrow (June 12) after the market closes. Investors are very excited to see what the company has in store, and are awaiting a concrete game plan for how management plans to double sales in the medium term.
Lastly, the Federal Open Market Committee (FOMC) meets June 18-19 and will release their Summary of Economic Projections. Investors are listening closely for any signs from Powell & Co. concerning a possible interest rate cut.