With investors asking "what is the probability of the Trump tax deal getting done?" it turns out that is the wrong question. As Morgan Stanley shows, the outcome from Trump's tax proposal is not binary but rather leads to the following nine distinct possible results.
The US House of Representatives passed a one week stopgap spending bill to keep the government funded through next Friday, as lawmakers continue work to finish legislation that extends funding through the rest of the fiscal year.
After a two-hour meeting in Speaker Paul Ryan office in the Capitol, McCarthy told reporters that the GOP had again failed to whip enough support for the bill: "we are not voting on healthcare tomorrow or Sunday."
Despite yesterday's whopping beats by Amazon and Google which sent the Nasdaq to new record highs after hours, this morning futures S&P futures are little changed ahead of the closely watched Q1 GDP report, European stocks and Asian equities are slightly lower, oil is higher after Russia said it had reached the 300kbpd oil cut per the OPEC pact, and the dollar was modestly in the red.
Exactly one month after Trump was humiliated by his own party, when in the last moment the House failed to get the number of votes to pass a Republican healthcare bill due to holdouts from the conservative Freedom Caucus, the president's second attempt to repeal Obamacare before his first 100 days in office run out, appears on the edge of failure.
"Back to being bearish on small caps: This last bout of optimism is likely to signal the end of the Trump Put, as friction arises over the funding the bill. We now see four key reasons to be cautious on small caps."
"I would like to bring to the attention of your Government information I have received concerning the possibility to repeal core elements of the Affordable Care Act (ACA) with negative impacts on the right of everyone to the enjoyment of the highest attainable standards of physical and mental health in the United States, in particular those with moderate or low income and in situations of poverty or social exclusion."
Having been unable to stage any kind of recovery from yesterday's Trump Tax Plan disappointment, comments from Vladimir Putin that "the situation in Korea is deteriorating" urging all sides to "avoid belligerent rhetoric" along with remarks by Chuck Schumer over the short-term spending bill (to avoid government shutdown), has sparked a leg lower in US stocks...