By: Kent Engelke | Capitol Securities
Equity markets were relatively quiet following the first 1 percent decline since October. Treasuries advanced nominally in price on a reassessment of growth prospects. Today is the healthcare vote. Lawmakers have signaled any setback could delay enactment of tax cuts and spending increases, the prospects for which underpinned the market since Trump’s election.
I could envision a scenario that if the healthcare bill is passed, the markets will stage a sharp rebound perhaps re-installing the proverbial “buy on dip” mentality, believing that Trump can deliver.
FRB Chair Yellen also speaks today. I think little new will be added, but anytime the Fed Chair speaks is potentially significant.
As inferred, both events could be possible market catalysts.
Last night the foreign markets were up. London was up 0.01%, Paris was up 0.17% and Frankfurt was up 0.39%. China was up 0.11%, Japan was up 0.28% and Hang Sang was up 0.03%.
The Dow should open nominally higher ahead of the healthcare vote. The 10-year is off 1/32 to yield 2.42%.