Media Quotes

CNBC: Stocks pull back from records as oil enters bear market

Tuesday, June 20, 2017
U.S. equities kicked off Tuesday’s session slightly lower as investors awaited for more details regarding potential tax reform.
The Dow Jones industrial average fell about 15 points at the open, with Chevron contributing the most losses. The S&P 500 slipped 0.2 percent, with energy falling 1.4 percent to lead decliners. The Nasdaq composite declined 0.1 percent.
House Speaker Paul Ryan is scheduled to speak later in the day at a conference held by the National Association of Manufacturers, where he is expected to push for permanent changes and comprehensive reform for individuals and businesses.
The prospects of tax reform were key in the stock market’s postelection run higher, but the Trump administration and the GOP-led Congress have not yet given concrete details on what their joint plan will be.
Treasury Secretary Steven Mnuchin told CNBC earlier on Tuesday he is confident that “massive tax reform” will be passed this year. “We’re 100 percent committed to getting it done this year. It’s critical to the economy,” he said on “Squawk Box.”
“If tax reform gets done, that’s going to be a big bullish catalyst for the stock market,” said Adam Sarhan, CEO of 50 Park Investments. He noted, however, Wall Street is still uncertain about whether these plans will come to fruition anytime soon.

Stocks were coming off a banner day Tuesday, as the Dow and S&P notched intraday and closing records. The tech-heavy Nasdaq, meanwhile, posted its best day since Nov. 7.
“Yesterday was a pivotal day on Wall Street because the bulls showed up and they bought the dip,” said 50 Park’s Sarhan. “That tells you the underlying strength from the past few years is still there.”
Wall Street also kept an eye on the energy sector as it faced pressure from falling oil prices. U.S. crude for July delivery fell 2.7 percent to $43.01 a barrel amid signs of rising production.
Oil prices are “most definitely” heading to $40 a barrel and will likely dip into the upper $30s, John Kilduff, founding partner at energy hedge fund Again Capital, told CNBC’s “Squawk Box.”
“Not only do we have a struggle with production and an ineffectual OPEC, non-OPEC production regime, but you have this overhang again that is not clearing, and so that is what this market is reacting to,” he said.
In economic new, there were no major data releases, but investors digested remarks from key Federal Reserve officials.
Boston Fed President Eric Rosengren said the current low-rate environment was likely to remain for some time, adding that low rates handicap the central bank’s ability to “offset negative shocks.”
Meanwhile, Fed Vice Chair Stanley Fischer said that while the U.S. and other nations have taken actions to strengthen their housing finance systems, more needs to be done to prevent a future crisis.
Dallas Fed President Robert Kaplan is scheduled to speak after the close Tuesday.
Treasury yields traded mixed, with the benchmark 10-year yield slipping to 2.17 percent and the two-year yield rising to 1.364 percent.
DJIA Dow Industrials 21514.86 -14.13 -0.07%
S&P 500 S&P 500 Index 2445.83 -7.63 -0.31%
NASDAQ NASDAQ Composite 6223.93 -15.08 -0.24%
On tap this week:
3:00 p.m. Dallas Fed President Robert Kaplan
Earnings: Oracle, Winnebago, CarMax
10:00 a.m. Existing home sales
Earnings: Bed, Bath and Beyond, Barnes and Noble, Sonic, Accenture
8:30 a.m. Initial claims
9:00 a.m. FHFA home prices
10:00 a.m. Fed Gov. Jay Powell at Senate Banking
Earnings: Blackberry, Finish Line
9:45 a.m. Manufacturing PMI
10:00 a.m. New home sales
10:15 a.m. St. Louis Fed President James Bullard
12:40 p.m. Cleveland Fed President Loretta Mester
2:15 p.m. Fed Gov. Powell