Market Snapshot December 1, 2017

blue room

Good Morning on this news filled Friday.

 

Lots to mention so I will cut it down to a few bullet points.

 

  • Late yesterday the Senate leadership pulled their tax bill to rework once the budget office said it would not pay for itself. Bonds improved late in the day on this news.
  • Last night heroics had Senate Republican rewriting the bill.
  • This am.. data out was in line.
  • A bit later this a.m. Senate leadership confirmed they bill has been reworked and they have enough votes to carry. Stocks go up big (triple digits) and Bonds tank.
  • A bit later, news out that Michael Flynn is in court to plead guilty on charges he lied to FBI on having talks with the Russians. Markets hit pause button.
  • An hour later, news that Trump directed Flynn to have those talks with Russians. Stock drop like a rock, bonds come roaring back… as there is more to worry about now than a tax change.
  • Last 30 min, stocks have pared their losses and bonds pared their gains.. Dow down 125 or so and the 10-yr is at 2.35% with mortgage bonds at +18bps erasing all of yesterday’s losses.

 

So what do you think???? There is a long way to go but Robert Mueller is a dog on the Trump bone and with today’s news, this is going to get interesting. I don’t recall if Mr. Trump ever received confirmation on if he can pardon himself, but that seems like a good question to follow up on now.

 

This is enough to digest on a Friday, enjoy the weekend, and I am sure there is more to come very soon.

 

First, make today great!