Stocks were little changed in trading on Tuesday after the White House rolled out their massive budget for the federal government.
All three major US stock indexes ticked up, but not by much.
We’ve got all the headlines, but first, the scoreboard:
- Dow: 20,939.11 +44.28, (+0.21%)
S&P 500: 2,398.26
, +14.26, (+0.18%)
- Nasdaq: 6,136.06, +2.41, (+0.04%)
- US 10-year yield: 2.285%, +0.031
- WTI crude oil: $US51.48, +0.35, +0.68%
- The White House released the fiscal year 2018 budget proposal. The proposal would slash funding for a wide range of domestic projects including farm subsidies, Medicaid, education programs, the Environmental Protection Agency, and more. Defence spending would increase if the budget were adopted.
- The budget proposal relied on very rosy ideas about US economic growth. The budget said that GDP growth would hit 3% in 2019 and maintain that level every year through 2027. Office of Management and Budget Director Mick Mulvaney said that everything in the budget is “keyed to getting us back to 3%” growth. Economists do not think this level of growth is likely to be achieved.
- The owner of Corona reportedly offered to buy the owner of Jack Daniels but was turned down. Constellation Brands has approached Brown-Forman for an acquisition, according to a report by CNBC’s Leslie Picker. Brown-Forman was not interested in selling itself, the report on Tuesday said.
- One of the world’s largest commodities traders is reportedly in talks to make a big entry into America’s agriculture market. Shares of the agriculture-trading giant Bunge jumped by as much as 16% on Tuesday following a report that the mining giant Glencore approached the company for a takeover.
- The US Labour Department will implement its fiduciary rule on June 9 with no further delays. The department’s rule, which requires brokers offering retirement investment advice to act in the best interests of their customers, has been heavily criticised by Republicans and Wall Street amid concerns it may make investment advice too costly. Consumer-protection groups have long advocated the rule, however.
- New-home sales plunge by a lot more than expected. Sales slumped by 11.4% at a seasonally adjusted annual rate of 569,000, the Census Bureau said in its monthly report. Economists had forecast that sales of new single-family homes fell by 1.8% at a seasonally adjusted annual rate of 610,000, according to Bloomberg.
More from Bob Bryan:
- STOCKS GO NOWHERE: Here’s what you need to know
- Trump’s budget is facing massive blowback in Congress — and Republicans are some of the loudest complainers
- Trump’s budget only works ‘if you believe in tooth fairies’
- Trump’s budget calls for staggering cuts to Medicaid, food stamps, and many other domestic programs
- Trump’s budget asks for $US1.6 billion to build the wall along the US-Mexico border