More Mnuchin: Does not know if 15% corporate tax rate is achievable

Technical Analysis

Author: Greg Michalowski | mnuchin

Speaking at CNBC Creating Alpha conference

He adds:
  • Services income won't get the benefit of pass-through tax rates
  • Companies that create jobs such as manufacturing would get pass through rates
  • Hopeful that tax reforem will be done by end of 2017
  • President still wants to get health care done. Not at the top of the agenda but wants it done
  • Tax reform can be back dated to Jan 1 2017
  • Permanence is better on debt ceiling
  • Pres wants to raise military spending and he will demand that in December
  • Hopeful decrease in federal tax rate will offset elimination of state/local tax deduction
The USDJPY and USDCHF are trading at new session highs currently as Mnuchin speaks.  The US stocks futures are wandering a bit lowerwith the S&P futures up 2.5 points. They were up 4.5 points prior to his interview. US yields are wandering a it higher with the 10 year up to a day high at 2.1585%.

  • If China doesn't follow UN sanctions, treasury will sanction Beijing
  • US will continue to put new sanctions on N. Korea until it stops current behavior
  • Cyber security is a focus.  Financial security is a prime concern.  Equifax breach "quite unfortunate"
  • Purpose of the Presidents councils was to give the President advise.   Does not mean they should agree with everything the President says or does. Thinks it was a mistake to disband.
  • Stock market has expectations that we will have significant growth.
  • Feels comfortable with the President. Sometimes we agree. Sometimes we disagree. I work for the President.
At the end:
  • S&P futures up 3 points
  • Nasdaq futures up 7.75 points
  • Dow futures up 50 points.
  • USDJPY, USDCHF, USDCAD trades at new highs.