FILE - In this May 29, 2019, file photo trader John Romolo works on the floor of the New York Stock Exchange. It may seem like the market should take off once all the trade-war worries dissipate. But investors have a long list of worries that have nothing to do with tariffs. Not only are profit margins weakening, reports showed weakening economic trends around the world for April, which was before President Trump shattered the market’s calm with his tariff tweets. (AP Photo/Richard Drew, File)

Monday's market action makes it seem that way: Stocks around the world climbed after President Donald Trump withdrew a threat to impose tariffs on Mexico, at least for now. That leaves investors hoping for a deal to soothe the more contentious and complex trade dispute with China, which helped sink stocks last month.

But there are other concerns that shouldn't be overlooked.

Economic trends were already signaling trouble before the latest round of tariff-induced fear. Friday's surprisingly weak jobs report, where employers added far fewer jobs than economists expected, gave extra pause. Corporate profits are also under pressure.

"If the administration fixes the problem it created, I'm sure there will be a short-term pop in the stock market," said Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments. "However, I believe it's only short-term because ultimately that will not remedy the underlying fundamentals, which are just not strong."

Skeptics say optimists aren't looking closely enough at all the troubles getting overshadowed by trade disputes. Among the concerns:

Slowing economic growth: The bright spots for the U.S. economy are still clear: The job market is solid, as long as Friday's disappointing report doesn't herald something more lasting. The unemployment rate at 3.6% is at its lowest since 1969, and consumers are feeling relatively confident.

But skeptics point to other recent economic reports that showed weakness in April, before this latest round of trade worries flared up. Among them: another drop in North American freight shipments, slower manufacturing growth than economists expected and weaker business spending on equipment.

Michael Wilson, equity strategist at Morgan Stanley, sees a warning flag in falling profits for many retailers. That could be an early sign that U.S. consumers may be less willing to spend in coming months.

Lackluster profit growth: Companies across the S&P 500 reported roughly flat earnings for the first three months of 2019, as they're no longer getting the big boost of the first year of lower tax rates. But analysts are more optimistic about trends later this year and are forecasting growth to accelerate to 7% in the fourth quarter, according to FactSet. That's key because stock prices tend to track the path of corporate profits over the long term.

Companies are also paying higher wages to their workers, and average hourly earnings rose 3.1% in May, which raises their costs. All those pressures could bring down profit margins for companies, which have recently been at record highs.

Politics always looming: Even beyond trade talks, politics can sway markets.

In Washington, regulators may be setting the stage for antitrust probes into some of the biggest tech companies. Amazon, Apple, Google's parent and other mega-tech companies have been some of the market's best-performing stocks in recent years, and losses for them have outsize effects on S&P 500 index funds.

In the Middle East, the Trump administration has pledged "maximum pressure" on Iran. The increasing tensions could send the price of oil soaring. In Europe, Britain is still negotiating its exit from the European Union, and investors are worried about signs of increasing tension between the bloc and Italy.


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