There is a lot of news this morning and the futures market is acting as if it will just sit back and let all of the news flush itself out before it responds hastily to any of it.
- There was a power shakeup in Saudi Arabia that was rooted in an anti-corruption campaign that has led to the detention of 11 princes, including the well-known investor Prince Al-Waleed Bin Talal
- Broadcom (AVGO) has submitted a $70.00 per share takeover offer for Qualcomm (QCOM), which translates to a total transaction value of $130 billion when net debt is included. That would be the largest ever technology deal if it is completed.
- New York Fed President Dudley has announced he will retire in mid-2018
- T-Mobile (TMUS) and Sprint (S) have confirmed they will not merge
- Cardinal Health (CAH), CVS Health (CVS), Sysco (SYY), and Michael Kors (KORS) all reported better than expected earnings
There is the ongoing debate over the House GOP's proposed tax plan, with reports suggesting the mortgage interest deduction could be raised from the proposed $500,000 limit and that lawmakers are taking another look at the treatment of "pass through" businesses.
The tax plan is a work in motion, which is to say one headline could mean something one day and nothing the next. Remember, this is just the House GOP trying to get its side of things figured out. That plan, when finalized, will then have to be reconciled with the Senate GOP's plan.
There are a lot of moving parts here and no sure thing at this juncture other than the notion that the GOP is working toward some type of tax reform. Passage is the end game, but what happens along the way is where the intrigue, and potential source of market volatility, lays.
From a broad market standpoint, nothing is looking too volatile at the moment.
The S&P futures are unchanged, the Nasdaq 100 futures are up three points, and the Dow Jones industrial Average futures are up 23 points.
That should translate into a relatively flattish start for the cash market, which is flush with news if not conviction.
Finally, in terms of the news, it would be remiss not to acknowledge the tragedy in Texas. It's yet another sad instance of a loss of innocent lives, which forces us as market analysts to make the dour observation that it has not impacted the market because it will not alter the broader economic or earnings outlook.