Dow falls 300 points as Trump worries escalate

[kasuke06]

http://money.cnn.com/2017/05/17/inve...html?iid=SF_LN

Is Wall Street finally getting ready to throw in the towel on President Trump? Perhaps.

Stocks fell sharply Wednesday following reports of a memo from former FBI Director James Comey that says Trump asked him to stop the investigation of former national security adviser Michael Flynn.

The Dow fell more than 325 points midday Wednesday -- about a 1.5% decline. A key measure of market volatility also spiked. It's a fairly big selloff but nowhere close to some of the bigger market drops that stocks experienced in the wake of the 2008 financial crisis.

It also comes just two days after both the S&P 500 and Nasdaq closed at record highs. Corporate earnings have been strong. Consumers remain confident as well.

The Dow is still up about 5% so far in 2017 while the S&P 500 is up 6%.

And the Nasdaq has soared 12% -- largely due to strong earnings from five tech giants in the index that just so happen to be the most valuable companies in America -- Apple (AAPL, Tech30), Google owner Alphabet (GOOGL, Tech30), Microsoft (MSFT, Tech30), Amazon (AMZN, Tech30) and Facebook (FB, Tech30).

Still, there are some indications of investor unease about the situation in Washington. Banks were among the biggest losers Wednesday.

Shares of JPMorgan Chase (JPM) fell 4%. Goldman Sachs (GS) was down 5%. And Morgan Stanley (MS) and Bank of America (BAC) each nosedived more than 6%.

Related: The super wealthy aren't selling stocks because of Trump

Investors had been betting that Trump would cut back on regulations against Wall Street firms put into place by President Obama. Those hopes may now be fading.

CNNMoney's Fear and Greed Index, which looks at seven gauges of market sentiment, slipped to Neutral mode Wednesday. It had been showing signs of Greed previously.

The VIX (VIX), a measure of market volatility that is one of the components of the Fear & Greed Index, spiked nearly 35% Wednesday.

The "I word" that is in the market lexicon -- inflation -- is now being replaced by whispers of impeachment.

"With a growing chorus of Democrats accusing Trump of obstructing justice and even calling for his impeachment, the Trump administration could come to an early season finale," wrote Lukman Otunuga, a research analyst with currency broker FXTM.

Gold prices have popped over the past week too. The yellow metal often does well when investors are nervous. It's a classic flight to safety bet. The US dollar has also sank recently against the euro and other currencies. And virtual currency Bitcoin has soared.

Related: Dollar slumps as Trump's latest crisis spooks investors

The market seems to be betting that, at a bare minimum, Trump's economic plans -- tax reform, undoing Obama-era regulations on banks and healthcare and stimulus though a big boost to infrastructure spending -- are dead in the water for some time,

"Trump's agenda already had stalled; now there's the likelihood that issues like tax reform will get crowded out by this political crisis," wrote Greg Valliere, chief global strategist with Horizon Investments, in a report.

Valliere thinks that talk of impeachment is still premature, but that "this a political earthquake, and the aftershocks will persist for the rest of Trump's presidency."

Focus on that last part of the quote. "The rest of Trump's presidency."
Conservative media in denial over Comey news?
Conservative media in denial over Comey news?

One reason that the markets may not be panicking about the latest crisis du jour in Washington is because they may be already anticipating the possibility that Trump will not serve a full term in the White House.

And even if Trump were to quit, be impeached or be removed from office via the 25th Amendment of the Constitution, Vice President Mike Pence might be able to have a better chance of getting some of Trump's proposals through Congress.

"People are still looking ahead to the hopes of tax reform as opposed to whatever the new scandal of the moment on 1600 Pennsylvania Ave is," said John Norris, managing director with Oakworth Capital Bank.

"And even if there is impeachment, some would argue that you have a smoother political operator with Pence," Norris added.

Related: Wall Street Journal urges Trump to stop the 'pointless melodrama'

Investors just have to sit and wait to see how the Trump soap opera unfolds. For now, the market still doesn't see a need to freak out.

"The question is whether these are US political rain showers like the ones drenching London's commuters, or real storms with lasting damage. Only time will tell," said Kit Juckes, global strategist at Societe Generale.

But if the chaos in Washington intensifies and puts the chances of any meaningful laws being passed that could help boost the economy in jeopardy -- even if Pence were to soon become the 46th president -- then Wall Street might finally begin to worry.

So... how is this a good thing?

[Vanyali]

This is, in fact, the left's fault because the market shouldn't react to Trump seeing a fire, seeing the accelerant he used, and rushing toward it to make sure that the Trump Brand is highlighted for everyone to see how cool he is.

[Deleted]

Never tired of winning
#MAGA
#BuildTheWall

[Sky High]

it's not? and you can thank Trump's administration for the abject disaster it is.

[s_bushido]

So... how is this a good thing?

So what is your alternative? Everyone putting their heads in the sand and pretending Trump isn't a shitty politician?

[Dug]

I'd like to you explain how its the lefts fault like you implied in your other thread? The glorious free market can do no wrong, if it sees bad times ahead then that shits gospel, right?

[Allybeboba]

Isn't the Dow higher than it was when he took over?

[Wyrt]

It's not a good thing, but that's what happens when you elect a crazy person as president.

[alexw]

http://money.cnn.com/2017/05/17/inve...html?iid=SF_LN



So... how is this a good thing?

Because all that happened is the market got pumped up because they thought they'd get tax cuts now its falling because they think they won't?

I mean it has zero relevance to anything in the real economy. Its just speculative activity.

[Lenonis]

So much winning!

[kasuke06]

So what is your alternative? Everyone putting their heads in the sand and pretending Trump isn't a shitty politician?

He isn't a politician at all. He's a business guy. So they trusted him to do things that are good for businesses, and now that the dems continuing to throw their massive shit fit, the markets are dropping because they can't count on the tax cuts(and infrastructure, and regulatory changes, and lowering of employee cost due to not having to provide as much healthcare, making it less costly to hire people instead of forcing fewer people to work more in less time.)

And don't get me started on the anon sources in most of these stories.

[Allybeboba]

Oh I get it now.
This thread here was anti left so it got locked. http://www.mmo-champion.com/threads/...e-trump-won-is Without a single post.

But....

[Deleted]

Depends on what you consider good really. I mean, I got gold and I am fairly happy right now

[Allybeboba]

I enjoy that the previous thread blamed the left because somehow reporting on negative changes in the economy after they've already occurred also causes them. Also anyone who reports negative changes is apparently on the left.

Anyway, you can blame the left all you want, but the original surge of the Dow after Trump was elected was based on the assumption that his presidency would do big things for business. When those expected changes don't materialize, it's only natural that the change should reverse course back towards the original status quo. The president really doesn't have as much control over the economy as people tend to give him credit for, but because it's seen that way, a lack of confidence in the abilities or direction of the president is going to shake confidence in the economic future. Don't blame the left. Blame Trump.

The funniest part was it got locked immediately. And this one rolls on.
Like how the "you know your left" thread was locked and the right one wasn't.

[Sky High]

He isn't a politician at all. He's a business guy. So they trusted him to do things that are good for businesses, and now that the dems continuing to throw their massive shit fit, the markets are dropping because they can't count on the tax cuts(and infrastructure, and regulatory changes, and lowering of employee cost due to not having to provide as much healthcare, making it less costly to hire people instead of forcing fewer people to work more in less time.)

And don't get me started on the anon sources in most of these stories.

/blames democrats for shit like a DOA healthcare bill that the GOP killed themselves

something stinks here...

[anaxie]

Article says most stocks are at extreme record highs since 2017.

Boogie boogie. It fell 1% still up 6%from january. Booga booga.

I dont know what tommorrow will hold or next week. But i can be sure whatever happens someone will start an uproar to bitch about trump.

At least ttump is making headlines every day meaning hes actually fucking doing stuff. Unlike or recent presedent obama who autopiloted that shit for 8 years while race baiting

[PC2]

Don't post threads with deliberately baity titles/discussion.

Oh wait it's a thread to complain about Trump.

Yes indeed Trump has stolen causality from the rest of the economy creating the 300 point change.

[nanook12]

Fuck the business people and their stock market. Even if the whole thing crashed it wouldn't affect me much.

[kasuke06]

It was baity as fuck, so the only real surprise is how quickly it was locked.

Pretty sure Endus has some kind of alarm that goes off whenever I post because I'm not of the left hive-mind.

[Exeris]

At least one thing you can count on is people getting scared easily and it's frequently used against us, as usual there will be a lot making money of this.