US Stocks Rise with Success in Trump Saudi Visit While Crude Oil Resumes Rally

US financial markets opened the week in a relatively quiet fashion after the noise surrounding last week’s political turmoil fades.  President Donald Trump’s visit to Saudi Arabia over the weekend captured the majority of political headlines, as he secured arms deals for US corporations, estimated to be worth as much as $350 billion over the next ten years.  The news prompted the share prices of defense and industrial firms such as General Dynamics, Raytheon, and Lockheed Martin to reach record highs, contributing to a 0.45%-0.85% rise in major US indices on the day.  The first portion of Trump’s trip to the Middle East has been characterized as a success thus far, and for the time being, seem to have tabled investor concerns related to the firing of former FBI director James Comey.  US Treasurys have held within a tight range throughout the session, as yields/swap rates are currently up 1-2 bps across the curve with the 10-year note yield at roughly 2.25%.  While there has not been much in the way of impactful economic data released today, the balance of the week will feature home sales and GDP reporting, in addition to the release of the minutes from May’s FOMC meeting on Wednesday.  Oil prices continued to rise today, with WTI and Brent crude hitting new monthly highs at $50.75/barrel and $53.75/barrel, respectively.  Assisting the crude rally were comments from the Energy Minister of Iraq, Jabbar Al-Luaibi, in support of a nine-month extension to the existing production cuts; a stance which has recently gained traction through support from Russian and Saudi Arabian officials.