Major indices rose on Sunday, Oct. 22, as earnings season heats up and a bipartisan healthcare compromise hopes to make it to the president's desk.
Dow Jones Industrial Average futures rose 0.1% Sunday evening, behind Nasdaq futures, up 0.13%. S&P 500 futures trailed, up 0.05%. The dollar also rose against major currencies on Sunday, up 0.08% against the euro, 0.01% against the pound and 0.3% against the yen.
While President Trump touted strong stock market performance since his election, Bank of America predicts a correction of 10% or more "sometime between Thanksgiving & Valentine's Day" thanks to the confluence of "wary Positioning in stocks & Credit, a strong Profit recovery and...monetary (& some fiscal) Policy stimulus."
Stock Market hits another all time high on Friday. 5.3 trillion dollars up since Election. Fake News doesn't spent much time on this!— Donald J. Trump (@realDonaldTrump) October 21, 2017
One such fiscal stimulus would be tax reform, which, if it passes, would be the first major tax overhaul since 1986. Despite controlling the White House and both houses of Congress, Trump has yet to pass a major piece of legislation.
"We're not getting the job done. And I'm not going to blame myself, I'll be honest," he said at a Cabinet meeting Monday, adding that Congress is "not getting the job done."
Healthcare reform is another area of contention. Senate Minority Leader Chuck Schumer said on NBC's "Meet the Press" on Sunday that the bipartisan Alexander-Murray healthcare bill has a supermajority, with all 48 Democrats as well as 12 Republicans supporting the bill.
"We can get together in a bipartisan way, the president urged it originally," Schumer said. "He called both Sens. Murray and Alexander and said, 'Come to a solution.' Then they come to a solution. The right wing attacks it, and he backs off. That's not leadership."
Senate Majority Leader Mitch McConnell said on CNN's "State of the Union" that he'd bring the bill to the floor if the president supported it; Trump has indicated that he views the compromise as merely a "short-term fix" and "bailouts to insurance companies."
12.3% of American adults lacked health insurance in the third quarter, up 0.6% from the second quarter and 1.4% year over year, according to a new Gallup poll.
On the monetary front, Trump is winnowing the pool of potential Federal Reserve chairs to succeed Janet Yellen, whose term ends in February. He told Maria Bartiromo on Friday that "most people are saying it's down to" Stanford economist John Taylor and current Federal Reserve Board of Governors member Jay Powell.
He's also considering reappointing Yellen: "So I have three people that I'm looking at, and there are a couple of others." Presidents traditionally reappoint incumbent Fed chairs appointed by predecessors from the opposite party, as President Obama did with Ben Bernanke, Bill Clinton with Alan Greenspan and Ronald Reagan with Paul Volcker.
White House press secretary Sarah Huckabee Sanders said to expect an announcement "in the coming days."
Earnings season is well underway, with 183 of the S&P 500 reporting this week. Tech earnings include include Seagate Technology plc (STX) on Monday; Advanced Micro Devices Inc. (AMD) , AT&T Inc. (T) and Texas Instruments Inc. (TXN) on Tuesday; and Alphabet Inc. (GOOGL) , Amazon.com Inc. (AMZN) , Microsoft Corp. (MSFT) and Xerox Corp. (XRX) on Thursday.
Consumer earnings include VF Corp. (VFC) , Hasbro Inc. (HAS) and Kimberly-Clark Corp. (KMB) on Monday; Chipotle Mexican Grill Inc. (CMG) , Fiat Chrysler Automobiles (FCAU) , General Motors Co. (GM) and McDonald's Corp. (MCD) on Tuesday; Buffalo Wild Wings (BWLD) , Coca-Cola Co. (KO) , Visa Inc. (V) and Walgreens Boots Alliance Inc. (WBA) on Wednesday; Anheuser-Busch InBev (BUD) , Ford Motor Co. (F) and Mattel Inc. (MAT) on Thursday; and Colgate-Palmolive Co. (CL) on Friday.
In the healthcare sector, Biogen Inc. (BIIB) and Eli Lilly & Co. (LLY) will report on Tuesday; Amgen Inc. (AMGN) and Anthem Inc. (ANTM) on Wednesday; Bristol-Myers Squibb Co. (BMY) , Gilead Sciences (GILD) and Celgene Corp. (CELG) on Thursday; and AbbVie Inc. (ABBV) and Merck & Co. (MRK) on Friday.
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