Midday update

Durable good orders were lower than Consensus  but some of the sting of the lower Numbers was offset by higher revisions  to last month.Pending home sales were also a disappointment.All  Eyes on politics as I mentioned this morning. President Trump was meeting with Governors for the second day and then had meeting with  CEOs of health insurance Companies.A few of his comments  did cause some movement in stocks,A list of a few of his comments:

  • proposing a $54 B  increase in Defense spending
  • trump told healthcare companies they have to work with him to bring down prices
  • His tax plan will be really simple
  • We will spend big on infrastructure

The last 2 comments gave a small boost to stocks  but it short lived.Spoos have a 7  handle range since 8:30 SPX open

The Dallas Fed President Kaplan,a  Voter and a Centrist  caused some excitement with his speech.Kaplan Said that WE “should raise rates sooner rather than later” and also said “U.S. growth will be higher then 2% this year” he also countered some of these hawkish Comments with dovish ones  but market ignored them.The probability for a March hike stands at 46% a “contract high”  This increase in probabilities is weighing on Short end  of treasuries  but doing little to help  Dollar.Possibly some deficit worries  weighing on Dollar as  the White house has been talking Budget today.The above mentioned Increase in Defense spending will be paid for by Cutting other programs and pulling back on Foreign aid.Disbelief by the dollar?

Oil is just  churning but Grains are on the Defense as wheat down almost 50 ticks.Short covering rally has run its course  and Egypt  Looking to buy a few cargoes of Wheat  but seem to be ignoring U.S.  . First notice day tomorrow for March contracts could be a catalyst for selling .CBOT wheat -2%,KC -2%, Minneapolis -1%

 

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