U.S. stock futures are pointing to a lower open on Monday and the U.S. dollar is weakening after currency traders have digested President Trump’s short America First inauguration speech on Friday that contained anti-establishment and protectionist themes while falling short of describing any upcoming plans for infrastructure spending.
Additional infrastructure spending during a period of expected tax cuts and possible military spending by the U.S. government is a challenging sell for budget conscious and deficit hawks in the Republican Party.
After Trump’s election win in November there were reports circulating in some Republican circles of a possible 10 yr. $1 trillion dollar infrastructure package to help boost economic growth and restore America’s aging infrastructure.
The mere talk about future infrastructure spending helped stocks to rally in December during the so called Trump rally.
Economic growth under Trump’s administration in the near term largely hinges on the approval of tax cuts, scaling back regulations, and renegotiating trade agreements.
According to the White House website, President Trump is committed to renegotiating NAFTA or withdrawing from the two decade old trade agreement if it doesn’t give American workers a fair deal.
“If our partners refuse a renegotiation that gives American workers a fair deal, then the President will give notice of the United States’ intent to withdraw from NAFTA” the White House trade deal statement reads.
Trump’s America First inauguration speech played into his election campaign theme that the American worker has fallen victim to corporations that have outsourced jobs to other countries and America must act decisively to protect their borders and economy from outside international forces that have deprived America of its wealth.
“Every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families. We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs.” Trump said in his January 20th inauguration speech.
President Trump is expected to address the topic of renegotiating NAFTA this week with Canada and Mexico and also meet with U.K. Prime Minister Theresa May at the White House on Friday.
U.S. Economic Calendar
On Tuesday U.S. existing home sales for December will be reported.
Later in the week on Thursday, new home sales for December comes into focus.
On Friday the 4th Quarter 2016 GDP report is released from the U.S. Department of Commerce.
Economists from briefing.com have a consensus estimate that Q4 2016 GDP (advance) rose 2.2 percent.
Durable orders for December and Michigan Sentiment for January are also reported on Friday.
Economists from briefing.com have a consensus forecast that durable orders increased 3.0 percent in December after dropping – 4.6 percent in November.