US STOCKS: Midday Equities Roundup: Reverse Early Gains on Chair Powell Chatter
Jul-16 15:39
- Stocks have retreated from modest early Wednesday session gains, the timing of the reversal coinciding with headlines that Pres Trump likely to fire Fed Chairman Powell soon, citing a White House official that added there was "no exact timeline" for any decision to act.
- The Fed statute authorizes the president to remove Fed governors for cause, but there's no case law in what would constitute cause, Lev Menand, an ex-senior Treasury adviser who specializes in legal matters around central banking at Columbia Law School, told MNI in April.
- The basis for "cause" my be tied to accusations of cost overruns on the renovation of the Fed building in DC.
- Currently, the DJIA trades down 264.27 points (-0.6%) at 43765.43, S&P E-Minis down 41.75 points (-0.66%) at 6242.25, the Nasdaq down 170 points (-0.8%) at 20510.2.
- A mix of Energy, Tech and Financials stocks led the late morning sale: Vistra Corp -4.05%, Applied Materials -4.01%, Teradyne Inc -3.92%, Micron Technology -3.51%, Constellation Energy -3.47% and Morgan Stanley -3.59%.
- Earnings expected after the close: Rexford Industrial Realty, Alcoa Corp, United Airlines Holdings Inc and Kinder Morgan Inc.
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G7: CBS-Trump Does Not Intend To Sign G7 Statement On Iran-Israel
Jun-16 15:36
The high-profile meeting between Canadian PM Mark Carney and US President Donald Trump on the sidelines of the G7 summit in Kananaskis, Alb. is underway. Livestream here. These are the second set of in-person talks between the two leaders, and come on a day of extremely high geopolitical tension with Iran and Israel continuing to pummel one another with airstrikes.
- Jennifer Jacobs at CBS News reports that Trump is not set to sign the G7 statement on Israel-Iran according to unnamed US officials. Jacobs claims that "The document talks about monitoring Iran, calls for both sides to protect civilians, and reups commitments to peace," Alayna Treene at CNN: "The statement also says Israel has a right to defend itself and states Iran can never have a nuclear weapon"
- While this decision is unlikely to change anything on the ground in the short term (airstrikes on both countries continue apace, Israel have seemingly struck the Iranian state TV station in the past few minutes), the lack of an agreement on such a pressing concern does not bode well for the G7 nations being able to reach agreement on other controversial topics such as trade, or the war in Ukraine.
FED: US TSY 26W BILL AUCTION: HIGH 4.155%(ALLOT 15.25%)
Jun-16 15:32
- US TSY 26W BILL AUCTION: HIGH 4.155%(ALLOT 15.25%)
- US TSY 26W BILL AUCTION: DEALERS TAKE 32.56% OF COMPETITIVES
- US TSY 26W BILL AUCTION: DIRECTS TAKE 11.29% OF COMPETITIVES
- US TSY 26W BILL AUCTION: INDIRECTS TAKE 56.15% OF COMPETITIVES
- US TSY 26W BILL AUCTION: BID/CVR 2.73
FED: US TSY 13W BILL AUCTION: HIGH 4.240%(ALLOT 6.76%)
Jun-16 15:32
- US TSY 13W BILL AUCTION: HIGH 4.240%(ALLOT 6.76%)
- US TSY 13W BILL AUCTION: DEALERS TAKE 28.95% OF COMPETITIVES
- US TSY 13W BILL AUCTION: DIRECTS TAKE 8.23% OF COMPETITIVES
- US TSY 13W BILL AUCTION: INDIRECTS TAKE 62.83% OF COMPETITIVES
- US TSY 13W BILL AUCTION: BID/CVR 2.99
