Monday’s shakeup on Pennsylvania Avenue didn’t change much on Wall Street, and one strategist isn’t surprised.
President Donald Trump removedhis communications director Anthony Scaramucci on Monday after hiring him just 10 days ago. Investors did not seem to mind the shake-up too much. The dollar index moved to its low of the day following the announcement, while the Dow Jones industrial average closed at a record high.
“If the market were to pull back at everything that bothered it, it would never be able to move higher,” Quincy Krosby, Prudential Financial’s chief market strategist said on CNBC’s “Closing Bell.” “So the fact of the matter is this is actually good news for the market, ultimately, because it brings some clarity to Washington, D.C.”
The move shows someone is in charge, Krosby said. Scaramucci’s firing came on new chief of staff John Kelly’s first day.
Plus, she said, Wall Street is focused on a strong earnings season. Investors are waiting to see if Apple can resurrect the technology sector, she said. The company is scheduled to report earnings Tuesday after the bell.
“The fact remains the market’s focus has always been on where’s the economy going, but more than that, how are companies doing regardless of the backdrop,” Krosby said.
Stephen Guilfoyle, founder and president of Sarge986, rebuked the notion that a weak dollar shows an administration in distress.
“The weak dollar is the one part of President Trump’s agenda that has worked like a charm,” he said on “Closing Bell.”
Now that “a lot of this garbage is removed,” he said, it renews the hope for tax reform. If the administration can push that through, he said, technology and small cap markets will move even higher.