Rally builds as Trump backs down

FRI, JUN 21, 2019

YOUR AFTERNOON NEWS UPDATE AND MARKET ACTION FROM CNBC

AS OF FRI, JUN 21, 2019 • 12:37 ET

DJIA		26784.19
		+0.12%	+31.02

S&P 500		2951.72
		-0.08%	-2.46

NASDAQ		8031.29
		-0.25%	-20.05

EDITOR'S NOTE

We've all been gripped by the drama over the President's last-minute cancellation of retaliatory strikes against Iran (more details here).

But it's not just that boosting the market today; you've also got confirmation that President Trump will be meeting with Xi Jinping at the G20 next week, and--perhaps not coincidentally--Mike Pence has reportedly now called off his speech on China policy altogether that was originally said to be planned for the 30th anniversary of the Tiananmen Square massacre.

Let's hope this "progress" with China that the White House is expecting is worth it.

Anyhow, even that's not all--you also have Neel Kashkari on the wires saying he wanted a half-point rate cut at the Fed's meeting this week (and if you missed Ric Mishkin's pointed commentary about the policy views of the regional bank presidents on Power Lunch this week, here it is).

It's not just Kashkari, whom some suspect is jockeying for Fed chair should the president actually pursue demoting Powell. The Fed's vice chair, Richard Clarida, was also out this morning saying "the case for providing accommodation has increased"--meaning, essentially, rate cuts.

Plus, the existing-home sales report this morning was decent (J.P. Morgan said the housing market is starting to look more positive than negative, and residential investment may rise in Q2 for the first time since 2017). That took the sting out of the poor Markit flash manufacturing gauge. (It would also seem to take the need out of rate cuts, but that's a discussion for the show today...)

Add it all up and you've got the S&P 500 again at new highs today. The Dow is up 8% this month with nine days left still, which, if it holds, makes this the best month since October 2015. Apple is up 14% since June 1!

Lots more at 1 p.m! See you then...

Kelly

Kelly Evans

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