Tuesday, President Trump and Republican congressional leaders are counting on state lockdowns lifting to propel an economic rebound that will ease pressure for another round of stimulus.
“There is only one way out of this dilemma: America has to grow again, to open up again and I am pleased that is beginning to happen in my state and other states,” Majority Leader Mitch McConnell (R-KY) said at the Capitol after President Trump had a lunch meeting with GOP senators.
President Trump has been urging Governors to lift restrictions on businesses. He said he expects “a really great 3rd Quarter” for the US economy, even though Fed Chairman Jerome Powell reiterated Tuesday that a full recovery could take until the end of Y 2021.
Republicans are putting up a unified front on holding off on another round of stimulus even as every economic indicator is showing historic declines. That has put them in an election-year stalemate with Democrats, who last week pushed through the House a $3-T C-19 coronavirus aid/relief package that the GOP rejected.
The lunch with President Trump followed a morning meeting in Leader McConnell’s office at the Capitol with Vice President Mike Pence, Treasury Secretary Steven Mnuchin and House GOP leader Kevin McCarthy.
After he left that meeting, Secretary Mnuchin joined Chairman Powell before the Senate Banking Committee, testifying about the response to the pandemic. Secretary Mnuchin warned of significant harm to the economy if shutdowns are prolonged.
“There is the risk of permanent damage,” Secretary Mnuchin told the Senators. “And as I have said before, we are conscious of the health issues and we want to do this in a balanced and safe way.”
Republicans are concerned that providing more assistance to states and individuals would slow movement by Governors to lift business restrictions.
Tuesday, the major US stock market indexes finished at: DJIA -390.51 to 24206.86, NAS Comp -49.72 to 9185.13, S&P 500 -30.97 to 2922.81
Volume: Trade on the NYSE came it at 871-M/shares exchanged
- NAS Comp +2.4% YTD
- S&P 500 -9.5% YTD
- DJIA-15.2% YTD
- Russell 2000 -21.6% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias in here.
Looking Ahead: Investors will receive the weekly MBA Mortgage Applications Index Wednesday.
Have a healthy day, Keep the Faith!