The health care debate will rule the news cycle today as well as equity markets.
The repeal of ObamaCare has become a proxy for the Trump Administration’s ability to get other meaningful measures accomplished this year including tax cuts across the board.
Look for another sell off Like Thursday’s close in stocks should the Trump White House go through with its ultimatum of pass it or stay with ObamaCare for the next two years.
As I wrote earlier Trump’s thinking as a CEO is over on this issue, He has tasked people to come up with a new health care plan. He’s ticked that off his list of things to accomplish. If he is stymied by Congress, then he will move on. Politics is not his forte, obviously.
As of 7am EDT, Dow futures are up 25 points, which indicates some positive thought on the passage of the vote.
I use Wall St. as a better barometer than the Washington pundits since the traders have money on the line versus “insiders” with no skin in the game being spun by legislative aides looking to make a name for themselves to get on the DC gravy train.
This same metric told me Trump won the November election — hours before any network called it — when the futures market fell some 700 points around 10pm EST.
Two updates on items I ran this week:
- Ford Motors came out with numbers on Thursday pointing to the problem with subprime auto loans by saying that used car sale prices will be lower for many years due to a flood or repossessed cars hitting the market. Ford hinted that this will have a material effect on it business going forward.
- On Monday I wrote about the rash of Russian politicians dying. Denis Voronenkov a former member of the Dumas and an open critic of Vladimir Putin was shot down in broad daylight outside the Premier Palace Hotel in the Ukrainian capital of Kiev.