After meandering back and forth, the stock market started to gain traction on Friday as it was barely in the plus column. There weren’t any news releases, but a lot of news made the rounds.  On Fox Business, Senator Scott (SC) laid out a plan for the Senate healthcare bill to be passed in a way that appeased both conservatives and moderates. 

Comments from CEO Jamie Dimon during the JPMorgan Chase press conference also picked up some traction:

“It's almost an embarrassment being an American citizen traveling around the world and listening to the stupid s--- we have to deal with in this country.”

"Why you guys don't write about it every day is completely beyond me. And, like, who cares about fixed income trading in the last two weeks of June? I mean seriously."

Dimon went on to complain about the following:

• Inner city school failures
• 35,000 opioid deaths this year
• No major airports built in 20 years
• Corporate taxation
• A litigious society

Tying it all with a bow, he said that America could still grow up to 2% annually because of our business foundation (something I’ve been saying for many years). He continued by saying that we are not “regulated” to simply plod along.

Sinking Sentiment

This week, the Congressional Budget Office (CBO) will score the latest Senate incarnations to replace Obamacare. I suspect those looking for help from a more favorable score (fewer people losing coverage) are going to be disappointed; all the while, ‘savings’ will begin to deteriorate as individual deals are crafted to buy votes.

However, the inability to get healthcare, tax cuts, tax reform, infrastructure, or the wall is taking the air out of Republican voters. There is always the threat that could lead to a slower economy.  Case in point: on Friday, University of Michigan Sentiment reading came in below consensus at 93.1 from 95.1 in May.  The devil is in the details tells a tale of growing doubt among the most ardent believers.

Consumers feel great about where we are right now with the ‘current’ read at the highest level since July 2005.

Consumer Sentiment	July	M/M	Y/Y
Current	112.5	112.5	109.0

According to the authors of the sentiment report, Republican workers are losing faith (my word, not theirs).  There is a sobering reality that the Gross Domestic Product (GDP) growth will be closer to 2% than 3%; the GOP leadership is just not getting the job done. 

Consumer Sentiment	July	M/M	Y/Y
Expectations	80.2	83.9	77.8

In a bitterly ironic twist, the Democrats’ optimism about the future (six months out) has been edging higher while Republicans are edging closer to a free-fall.

Consumer Sentiment Expectations	July	June	Feb
GOP	108.9	116.1	120.1
Dem	63.2	62.0	55.5

I understand many are torn over the notion of Republicans getting something through even if it’s a bill/law that doesn’t live up to its promises made to voters.  I continue to think a smarter approach would be a full repeal and resetting the timeline to buy a year while pushing through the rest of the economic agenda.

By the time the score from the CBO hits, this might all be a moot point.

Today’s Session

It’s relatively quiet but everyone knows the earnings storm is coming, meanwhile in China, Winnie the Pooh has been banned from the Internet.

Chinese bloggers comparing President Xi to the famous cartoon character have hit a nerve and now the imagine has been ordered removed from the internet.  This kind of flip censorship has worried a lot of investors outside of China for a long time, underscoring the conundrum of fast growing online community and business and the government’s ability to stop or slow that growth on a whim.  

There were good news coming from China, as second quarter GDP came in at 6.9% beating consensus of 6.8%. 

Growth was driven by:

• Exports
• Production (particularly steel)
• Retail Sales

Chinese stocks are edging higher but so are US Steel and others, as this news is sure to make heads explode inside the White House .

Comments

Dimon is right. Obama and the Dems gave us 8 years of retarded government. The voters were tired of it and elected Trump. Now the Dems and Repubs (establishment) hate the voters for electing Trump and have vowed to work together to punish the voters. Jim Grier on 7/17/2017 8:32:26 AM

Dimon is well meaning but only touches the most glaring problems facing the United States. Try driving the roads in MI and LA. especially. Hopefully your teeth don't fall out. Look how Detroit was thrown away like leftover trash. And that just touches our problem. If we had enforced our immigration laws as written 911 may not have happened. Or the relentless draining of our resources would be controllable. Hate Trump as the elites do at least he is trying to right the ship. Which drives everyone (especially the media) bat crazy. Let's finally run this country like a business and set a steady course and enforce rules already on books. Roll up your sleeves and help Dimon! Greg Quirk on 7/17/2017 10:06:16 AM

As a voter, I'm dumbfounded that the GOP won't govern. GOP has had 7 yrs to plan. They campaigned and promised to deliver. Finally, the executive branch is ready to go. Legislative? not so much. The markets & everybody is on hold. Sorry for the rant, but I think the GOP doesn't get it & I'm frustrated. Robert Waddell on 7/17/2017 10:14:32 AM

Generally while our Federal government stumbles along in disarray, the equity market doesn't seem to care much at this point. Our Politicians and government has been doing nothing but sparring over this absurd foolish Russian issue for months and playing extreme partisanship over areas that really matter for Americans and the economy. Listening to the Dems absurd pronouncements about collusion and then their scare tactics on healthcare just fuels the fires of partisanship and insures nothing worthwhile gets done. Garro on 7/17/2017 10:19:25 AM

I am not embarrassed to be a American, but I am extremely upset that our congress can not get Healthcare , Tax reform & other problems solved. They had years to research & work up plans to accomplish this....... John Horchen on 7/17/2017 10:26:40 AM

Perhaps a few written expressions about Nancy Pelosi's outrageous travel expenses $5,700,000 of the tax payer's money to fly her worthless "A" and her friends back and forth to California every week on a 200 seat jet. The Republican party needs to get off it's "A" and starts to support our President. I to, like Jamie Diamond am sick and tired of my party doing nothing. President Trump needs to start reading about and hearing from the Great American Public that loves our President for the outstanding job he is doing for us!!!!!!!! Richard on 7/17/2017 10:27:51 AM

Perhaps a few written expressions about Nancy Pelosi's outrageous travel expenses $5,700,000 of the tax payer's money to fly her and her friends back and forth to California every week on a 200 seat chartered jet. The Republican party needs to get off it's but and start to support our President. I to, like Jamie Diamond am sick and tired of my party doing nothing. President Trump needs to start reading about and hearing from the Great American Public that loves our President for the outstanding job he is doing and the great accomplishments he is achieving for us!!!!!!!! Richard on 7/17/2017 10:32:14 AM

I wish that Donald Trump could do it all by himself but, with the congress we have in place I fear that what needs to be done will never happen!!!! That's why I urge everyone I know to vote for no incumbent in the primary election!!!! I used to vote for the person not the party however, I can't do that anymore!!!!! I now vote a straight republican ticket and will continue to do that until this country is back where it used to be!!!!!! My hope is that every American will do the same thing!!!!!!! Paul N Ransom on 7/17/2017 10:40:34 AM

Finally we have a President that is truly for the people but unfortunately he has both parties against him I just don't get the GOP They finally have all control over DC and still can't get off there butts and make our country great again Its getting harder to see how the President will drain the swamp But I still have the faith that he will succeed elliot on 7/17/2017 10:49:11 AM

I am embarrassed of both the democrats and the republicans, along with many corporate leaders whom are all totally dishonest. Why cant the govt have a balanced budget, and live with in it ? Why do politicians get a pension and benefits for life after 1 or 2 terms served, this should not be allowed. There should be term limits, none of them do what is right for the middle class. Why do politicians commit crimes and never be held accountable or go to jail. Its disgusting today. And not 1 democratic congressman or senator can go along with 1 trump Idea. Its all Bull shit. Bring on the civil war and split the country up. Tom on 7/17/2017 10:59:19 AM

Tax reform, corporate and individual, IMMEDIATELY! kev on 7/17/2017 11:36:22 AM

NO!! Proud to be an American! Afraid to wear a Trump shirt :( susan schroder on 7/17/2017 11:53:25 AM

No. But, unhappy with the GOP's death wish. We elect them and they do nothing! What's 15 minus 7 easier tnan 'Robot Pictures'. TOM HOLCOMB CPA on 7/17/2017 12:17:19 PM

Speaking of being PROUD to be an American, I have been traveling to Ireland for nearly 20 years and in the beginning, the Irish LOVED everything about Americans! NOW...a different story! After Obama provided ENDLESS bowing, kissing and appeasement to Socialist ideals for the U.S., which the Irish LOVED, the thought that America might place itself "FIRST," (as under the goals and ideals of President Trump) has caused a 180-degree turnaround in Irish attitude toward Americans. I can not BELIEVE the attitudinal change and presume it may well be the SAME throughout ALL of Europe, as well! Thanks, Barack and Michelle, for your inept leadership and total disregard for what we citizens of the greatest country on Earth REALLY need: Our Sanity and Pride returned! James Warlin on 7/17/2017 12:45:00 PM

I will never be embarrassed to be an American. Dimon has become wealthy and healed from a deadly disease as a byproduct of being an American citizen. Perhaps he should count his blessings instead of bashing his country? I agree our media and government stink to high heaven a lot of the time, but that does not make me embarrassed of my country. Mahona Witter on 7/17/2017 1:02:56 PM

Some folks shifted the focus to me not adding the entire quote. The text of his comments would have taken up page and half or more and next time I'll add a link but for me the issue is being embarrassed by america when you travel to other countries. There are many things wrong with America but I have never felt the need for apology when overseas. CP Charles Payne on 7/17/2017 4:57:16 PM

#WAKEUPAMERICA ! There are no "GOOD" Democrats. They are all PROGRESSIVES (COMMUNIST) that want full fledged communism period. The Republican Leadership are all PROGRESSIVES (COMMUNIST) that want a "NEW WORLD ORDER), BUSH family is your example there. But until states like Kentucky (Mitch McConnell), Wisconsin (Paul Ryan), Arizona (John McCain) etc wake up and #FIRE these losers AMERICA will never be great again. NOTE: VOTING STRAIGHT PARTY KEEPS THOSE FOLKS IN POWER PEOPLE. Jesse Ybarra on 7/17/2017 1:36:00 PM

NO!!! Why I be embarassed at being an American. Thiz is the greatest Country in the world. I served 30 years in the Military, 5 Active 25 Reserves. We are just going over a few speed bumps. We will get through these small problems. Bob Medkeff on 7/17/2017 1:45:14 PM

If I wasn't embarrassed to be an American during the Obama Administration, why would I be embarrassed to be an American now? Congress is a joke, but politicians are a joke worldwide. I'm getting ready for the political ads that will run in advance of the 2018 Mid-term elections extolling their candidate as "A real leader", that is until they get to Washington, and then expose themselves for the gutless wonders that the bunch of them are. Kevin Kelly on 7/17/2017 1:48:30 PM

ABSOLUTELY NOT! The only embarrassment is if we try to compare ourselves to perfection, which is idiotic. If we compare ourselves to the rest of the world, we look good. - We still have the right to be individuals and defend ourselves, not be slaves of the state like most countries. And because we retain that right, we, as a society, have retained the responsibility to not abuse that right. (Although we have outliers who fail here, they are the fringe, not the majority). - We have a society where issues can be openly discussed in public forum. Yes, we have the political left which loves to bully others into silence by name calling and abusive debate, but they have not yet succeeded in making it like other countries where debating the wrong side will get you locked away. - We have for over 65 years been the defender of freedom for the world. Sure other countries have participated, but it is we AMERICANS who have put up the funds and the lives to make others free without any hint of creating an empire. We have done it and continue to do it because IT IS RIGHT. - We are the most generous society in the world by far. The US government and the US people are the top 2 in the world for funding humanitarian aid throughout the world, even to our ideological enemies. - Yes, our media and our politicians are sick jokes, but they are not us. The embarrassment which the Obama family expressed publicly just goes to show how poor he was at understanding or representing the people of the red, white, and blue. He only got elected because people wanted change and too may did not realize that his version of change was just reversion to an old system that had failed so many times before. Now, we have a new president elected for the same reason: change. And this president is proud to be an American and happy to tell the world that we little reason to be embarrassed about who we are. Anyone who wants to say we have reason has a long way to go before they will not be accusing themselves twice as much as anything they say about us. while our government may look stupid, it is no more stupid than their counterparts in the rest of the world. Bob G on 7/17/2017 2:27:11 PM

I agree with Mr. Dimon, we pride ourselves in being the land of opportunity and then continue to elect politicians who regulate and tax the opportunity out of the economy. Growth has all but disappeared in the last 8 years. The Republicans need to get their act together and get something done. Howard Hendricks on 7/17/2017 4:16:13 PM

Not to the extent he sees - my perspective is nowhere near as sweeping. What embarrasses me is how willing we are to be ashamed of our success and good fortune. Cultures normally hold their nation close, as something precious. Patricia Flynn on 7/17/2017 4:20:52 PM

I will never be embarrassed to be an American. Dimon has become wealthy and healed from a deadly disease as a byproduct of being an American citizen. Perhaps he should count his blessings instead of bashing his country? I agree our media and government stink to high heaven a lot of the time, but that does not make me embarrassed of my country. Mahona Witter on 7/17/2017 4:44:28 PM

The problem is that we are a fundamentally divided country -- divided in values and spoiled rotten with our seeming success -- and yet totally blind to our deeper problems like abortion. The 2016 vote reflected that. Donald Trump won 18 out of 21 states with average abortion rates of 7.4, while Hillary won 11 out of the 12 states with abortion rates ranging from 20% to 40%. And they split the 18 mid-range states right down the middle. And yet we are totally in denial about abortion as an issue in the election. We're also unwilling to admit that 60 million missing people because of abortion has anything to do with our slow economy, and yet by my calculation they represent a $60 trillion cumulative loss to our economy. No wonder we're sick and in fact dying as a country. The only good news is that the Democrats are through as a national party after aborting a major part of their own voting base, some 36 million Blacks and Hispanics. That's the underlying demographic reason they lost, and the effect will only compound in the decades ahead if you even begin counting the echo effect on the next generation -- the kids who will never be born because their "parents" were aborted. What it has done to Blacks is positively genocidal. And yet we go right on funding Planned Parenthood. But how many politicians -- or economists, for that matter -- are willing to have an honest discussion about the moral, social, and economic impact of all this on the American future? Just imagine where we would be as a country today if Lincoln and the abolitionists hadn't forced us to face the issue of slavery in 1860. Frankly, we'd probably still be an agrarian backwater country. Trump has a grand plan to make America great again, but that frankly, that will take a few generations. We'll certainly never see 3 or 4% or more growth again as long as this scourge lasts. What we need is another Baby Boom, or at least a boomlet. There is no other way to make up our losses in the real America. Dennis Howard on 7/17/2017 6:13:44 PM

Dimon is spot on and I hope the Republican Senators enjoyed their time in the minority, for they are surely headed back there. Imagine what losing the majority means to tax reform and the next Supreme Court nominee. Alan Bartlett on 7/18/2017 2:36:10 PM

Dimon is right , but he should come out and boldly backing our president Trump . All my friends and people that I talk to are feed up with the entrenched politicians in this country . We have to vote new blood in our congress , send the establishment home to rot . also have term limits for these people . William Keifer on 7/19/2017 11:18:12 AM

I am not ashamed of being an american. Although we are going through a period of disfunction in our history I remain proud. T Withle Primus on 7/21/2017 11:20:39 AM

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.