Pre-Market Pulse 17th July – Stocks grind higher as Trump distracts media with Fed Chair issue

Overnight – Stocks grind higher as Trump distracts media with Fed Chair issue

Equities moved higher overnight after President Donald Trump denied reports that he was close to firing Federal Reserve Chairman Jerome Powell.

For context, The President has no legal right to remove the Fed Chair, so in true Trump style, the noise is more about wishes than it is reality and a brilliant distraction from the lack of trade deals, the US debt and inflation from tariffs

President Donald Trump has publicly denied reports that he is close to firing Federal Reserve Chairman Jerome Powell, saying he is “not planning anything” related to such a move. However, Trump did not shy away from criticizing Powell, expressing frustration over the central bank’s decision to keep interest rates high and accusing him of mishandling an expensive renovation project at the Federal Reserve’s headquarters.

Economic data released this week shows that U.S. wholesale inflation, as measured by the producer price index (PPI), remained unchanged in June, with a 0.0% month-on-month reading—down from 0.3% previously. On an annual basis, PPI growth slowed to 2.3% after hitting 2.7% in May, undershooting economists’ expectations. In contrast, consumer price index (CPI) data for June indicated a faster monthly and annual increase, raising concerns that trade tariffs championed by the administration may be contributing to rising consumer costs.

Ongoing tariff uncertainty remains a central issue. Trump reiterated that planned 200% tariffs on pharmaceutical imports will come into effect by month-end, along with other proposed levies. The U.S. also introduced a 19% tariff on Indonesian goods, part of a new trade agreement, and has signaled additional deals are forthcoming as deadlines for implementing new “reciprocal” tariffs approach. These moves have heightened market anxiety, as previous announcements of tariffs led to significant volatility.

Corporate Earnings

• Goldman Sachs (NYSE:GS) –stock rose after the investment bank’s profit jumped in the second quarter, as turbulent markets lifted equities trading revenue to a record and a pickup in dealmaking boosted investment banking.
• Johnson and Johnson (NYSE:JNJ) +6.19% – commentary focused most-specifically on top-line growth acceleration, with uncertainties about tariffs and other factors confounding operative leverage visibility. The company expects a $200 million tariff impact, down from $400 million previously. The company increased the adjusted operational revenue growth and multiple new product launches are driving their positive outlook confidence
• Bank of America (NYSE:BAC) – gained after the lender’s profit rose in the second quarter as its trading desks brought in more revenue from tumultuous markets in the second three-month period.
• Morgan Stanley (NYSE:MS) – stock fell despite the banking giant’s profit climbing as market volatility buoyed its trading desk.

Tesla Inc (NASDAQ:TSLA) – climbed 3% after the company announced that it would be rolling out a six-seater Model Y starting this fall.