What's moving markets today: September 25, 2019
"I don't think impeachment matters to the market," Anthony Scaramucci, former White House communications director, told Alison Kosik on the CNN Business digital live show Markets Now.
China would benefit from a Trump re-election, Scaramucci added, saying the president is destroying the United States' geopolitical standing, or soft power.
Anthony Scaramucci, the investor and former White House communications director, hit out at President Donald Trump for what he called Trump's "prime facie lawlessness."
"This is a lack of morality on the president's part, a lack of understanding what the laws are. ... I think people are now recognizing that the gig is up," Scaramucci, the founder of Skybridge Capital, said on CNN Business' digital live show Markets Now.
He said on Twitter that the transcript released earlier of the call between Trump and Ukrainian President Zelensky "was way more damning" than he thought it would be.
"You’re in a full-blown constitutional crisis," Scaramucci told CNN Business' Alison Kosik.
The safe haven dollar is back and it's rallying, with the ICE US Dollar Index up 0.6%.
The trade uncertainty and political chaos in the United States is playing in the dollar's favor. A weak British pound, amid more Brexit turmoil, and a weak euro are helping further.
Over the past years, the greenback has become a safe haven for investors. Traditional safety bets in the currency world are the Japanese yen and the Swiss franc, which tend to rise in times of trouble.
At least since early 2018 it is clear that the dollar is performing as a safe haven for a large number of investors. This is despite the fact that the US has poor budget and current account positions," said senior Rabobank FX strategist Jane Foley in a note.
But with European economies are slowing down, as is the world economy, while the United States keep chugging along, which makes the dollar more attractive. Even amid the trade war with China, America's economy has remained afloat. All this bodes well for US assets and the buck.
The dollar's leading role in global payments systems is helping matters.
One person who won't be happy to hear about the dollar's climb will be President Donald Trump, who has long called the dollar too strong and hurtful to US competitiveness on the global market.
Stocks bounced to their session highs as President Donald Trump said a deal with China could happen soon, according to multiple reports.
The Dow climbed some 150 points, or 0.6%, highlighting once again that trade is the story that matters most for the markets.
New home sales in the United States grew more strongly than expected in August.
Sales rose a whopping 7.1% over the prior month — well above a Refinitiv consensus forecast of 3.5%.
Translation: 713,000 new homes were sold in August.
New home sales are soaring and so too is the outlook for the economy as we head into the fourth quarter of the year. Trade war tensions and tariffs aren't holding back home buyers one bit. Maybe Wall Street economists have oversold the gloom and doom story because people don't buy a new home if a recession is on the way," wrote Chris Rupkey, chief financial economist at MUFG, in a note.
The July numbers were revised higher, now showing a 8.6% contraction of sales versus 12.8% in the first reading.
No matter how far the impeachment proceedings go, this is yet one more question mark clouding the outlook for the longest economic expansion and the longest bull market in American history.
“We don’t have a playbook for this,” said Nicholas Colas, co-founder of DataTrek Research.
History offers limited examples of how the market performs during impeachment proceedings. And those examples, of course, didn't happen in the middle of a trade war.
US stocks continue to trade mixed after the White House released the call transcript between President Donald Trump and Ukrainian President Zelensky from July.
The Dow was last up 0.1%, or roughly 30 points. The S&P is off by 0.2% and the Nasdaq is down 0.4%.
US stocks started the day mixed, as investors are coming to grips with what the impeachment process could mean for the trade war with China and the ratification of the new US-Mexico-Canada trade agreement.
Nike (NKE) shares opened nearly 6%. The company posted better-than-expected second quarter earnings late Tuesday.
eBay (EBAY) stock slipped 1.7% at the open, after the company announced that its CEO had stepped down.
eBay's CEO is out.
Devin Wenig, the e-commerce platform's CEO, is the latest tech boss to step down.
Given "a number of considerations, both Devin and the board believe that a new CEO is best of the company at this time," eBay (EBAY) said in a press release.
eBay appointed senior vice president and chief financial officer Scott Schenkel as interim CEO, while the company's board will look for a new leader among internal and external candidates.
eBay affirmed its full-year guidance of 2% to 3% of currency-neutral revenue growth.
Wenig tweeted about his departure, saying "in the past few weeks it became clear that I was not on the same page as my new Board."
He added it had been "an incredible priviledge to lead one of the world's great businesses for the past 8 years."