WASHINGTON, April 26, 2017 – In an interview on CNBC TV’s venerable “Squawk Box” program, guest exec Scott McNealy made a startling statement that stood CNBC’s ongoing online anti-Trump crusade on its ear:
“Sun Microsystems co-founder Scott McNealy told CNBC on Wednesday that CEOs appear to be relieved that the eight years of economic ‘waterboarding’ by the Obama administration has stopped.
“‘I’ve been talking to lots of CEOs. I had one who said it very succinctly, a very large Fortune 20-type CEO, and he said, “All of a sudden after the election, the waterboarding, the eight years of waterboarding stopped,”’ said McNealy, who voted for Donald Trump.
“‘I think that is a strong feeling of a lot of CEOs out there,’ McNealy told Squawk Box. ‘The regulations are coming down. The attacks from the government are coming down.’”
This is the story you haven’t been hearing on fast-failing traditional and cable news outlets since President Trump began his first term on January 20.
While arrogant left-coast judges have gotten headlines stopping Trump’s anti-illegal alien executive orders in their tracks—for now—the President, occasionally aided and abetted by Congressional Republicans, has steadily been eroding clearly the economy-crushing actions of his anti-business predecessor, former president Obama. McNealy’s statement is the clearest statement yet that the new pro-business American president is helping to re-ignite the competitive, All-American spirit of American individuals and corporations and inspiring them to get companies—and their employees—back to work.
If Trump does nothing else over the next four years than complete a rollback of the Obama administration’s thicket of stultifying rules, regulations and executive orders, the American economy may indeed finally mount something resembling a real recovery from the Great Recession, a recovery that was almost completely stymied during the previous administration.
Anything else is gravy. Even so, it’s also clear that sooner rather than later, Republicans on the Hill will finally begin to break the twin logjams on Obamacare repeal and replace legislation of some sort as well as beginning the hard work of reforming America’s labyrinthine and unproductive tax system.
The outlines of the Trump tax cut agenda are being announced today as we write this article, with information being provided today primarily by Treasury Secretary Steven Mnuchin and the President’s Chief Economic Advisor Gary Cohn. (Further details in our companion column a bit later today.)
How is Wall Street reacting to the new tax plan? Or at least to what details were revealed today? Meh. After so much anticipation running up to this Wednesday “reveal,” traders aren’t exactly dumping stocks. The Dow Jones Industrials, for example, are up 34.08 points (+0.16%) as we write this, with the other major averages making similar gains. WTI crude oil has just eked out a six cent gain, also nice given black gold’s weakness this week.
But, we suspect, the big anticipatory rally ran most of its course over the last two trading days, during which a majority of stocks scored substantial gains.
We’ll look right now for things to consolidate once again, and perhaps even go sideways to negative for a time. But just as long as the Administration—and Congress—are able to keep most of Trump’s campaign promises alive and moving toward the finish line, markets should still have an upward bias in 2017, even if stocks may still be a little ahead of themselves at this time.