U.S. Stocks Tumble as FBI Memo Calls Trump Agenda Into Question

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Stocks Fall the Most Since March Amid Trump Turmoil

U.S. stocks fell as investors assessed the fallout from a report alleging President Donald Trump asked then-FBI Director James Comey to drop an investigation into a former top official.

The S&P 500 Index fell 0.7 percent to 2,384 at 9:50 a.m. in New York, the biggest drop in more than a month. The Dow Jones Industrial Average declined 0.8 percent to 20,818. The S&P 500 index, up 11 percent since Trump was elected in November, slipped 0.1 percent Tuesday after touching a new intraday high of 2,405.77.

  • Real estate and utility shares only groups higher as 10 year drops 7 bps
  • Financials down 1.7%, most among in the market; industrials fall 1.1%
  • VIX up 17% to 12.4 for biggest jump since September
  • Volume in S&P 500 36% above 30-day average
  • The dollar, already in retreat after an earlier report said Trump shared terrorism intelligence with Russian officials, continued its decline
  • POLITICS:
    • A memo written by then-FBI Director James Comey surfaced Tuesday, alleging that the president asked him to drop an investigation of former National Security Adviser Michael Flynn
    • Investors had already been keeping an eye on developments in the White House, amid the president’s firing of Comey a week ago and a report Monday that Trump disclosed sensitive intelligence to Russian officials
  • ECONOMY:
    • MBA mortgage applications index fell 4.1% in week ended May 12 after rising 2.4% in prior week
  • EARNINGS:
    • More than 90% of S&P 500 companies have reported earnings already this season. Of those, 78% exceeded profit projections and 64% topped sales estimates, data compiled by Bloomberg show
    • After-market Wednesday: Cisco Systems (CSCO), L Brands (LB), Synopsys (SNPS)
    • Pre-market Thursday: Wal-Mart (WMT), Ralph Lauren (RL)

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