Stock Market Today
Can we make it six up days in a row? Or maybe we’ll just be up all week to make it ten! Nothing surprises me in this market.
Following a relatively quiet weekend, no big news out of the Middle East or Washington, pretty much all major futures that aren’t energy-related are heading higher.
There are a few new items to note today.
First, the Canadian government has agreed to halt implementation of a digital-services tax that it was set to impose on U.S. tech companies. The move will allow trade talks to reconvene, with officials saying that they hope to have a deal announced by July 21st.
Related: Go ahead: Start celebrating a big quarter for stocks
Second, will the Fed or won’t the Fed raise rates at its July meeting? Over on TheStreet Pro, Stephen “Sarge” Guilfoyle reports that there is growing dissension among Fed governors over rate cuts. While Chair Powell prefers a wait and see approach, other members of the Federal Reserve Board are beginning to suggest that a rate cut is in order.
Sarge also notes that Fed Futures are pricing in an 82% probability of no cut in July, but a 76% likelihood of a cut in September as well as high probabilities for additional cuts that could total 0.75% by year end.
As the tax bill makes its way through the Senate, the prospect of lower taxes plus lower borrowing rates continues to push stocks higher.
Related: Filthy Rich Animal’s Question of the Week: Big Dogs vs. Small Dogs in the S&P 500
