U.S. Stock ETFs Slip on Weak Housing Results, Political Headaches

“In terms of potential implications for the markets, finding support in Congress for fiscal measures may prove even more difficult for President Donald Trump if the latest reports undermine his relationship with the Republicans,” Piotr Matys, foreign-exchange strategist at Rabobank, told the WSJ, referring to reports that the president shared sensitive intelligence obtained from a close U.S. ally with Russia’s foreign minister and ambassador.

Nevertheless, markets still anticipate further economic growth to fuel gains. Bank of America Merrill Lynch sees expectations for global profits are at a three-year high, with over half of fund managers estimating results to improve over the next 12 months.

“As long as we have growth, whether it is earnings or economic data, the markets are likely to be able to take such (political) headlines in stride,” Matt Miskin, senior capital markets research analyst at John Hancock Investments, told Reuters.

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