U.S. equities extended their upswing
U.S. equities extended their upswing with the financial sector bid on an assortment of bank earnings after JP Morgan reported a 35% leap in profits and record stock trading revenue. Citi likewise benefited from stock market volatility and tax cuts, and Wells Fargo beat as well, despite a potential risk management settlement of as high as $1 B with regulators. This followed cooling of trade rhetoric yesterday and the possibility of the U.S. rejoining the TPP (only on "substantially better terms" DJT). Trump reportedly had meetings with Deputy AG Rosenstein yesterday and called former FBI chief Comey "a leaker, liar and untruthful slime ball" on Twitter earlier, in a sign of increasing frustration with the Russian investigation and in response to Comey's memoir comparing Trump to a "mafia boss." The Dow is 146-points firmer, S&P is up 15-points and NASDAQ is up 32-points in pre-market trade. Asia was mixed with China's Shanghai Comp 0.6% lower, though Japan's N-225 gained 0.5%. Europe is more consistently firmer, with the Euro Stoxx 50 up 0.5% and the German DAX +0.7%. A light U.S. docket will included Michigan sentiment, JOLTS and more Fedspeak from Bullard and Kaplan.