Bartiromo: Stock Market Rally Is Now Due to Anticipation of Trump Policies

RUSH EXCERPT:
BARTIROMO: "I think there is no question the stock market rally initially was totally because of the anticipation of President Trump. People saw his policies as a massive tax cut going to have an impact on the economy. Earlier in the year when the president first took office, there was a lot of anticipation that he would get tax reform and healthcare done. A couple months into it the expectations plummeted and it’s when the markets stop rallying and actually what happened was profits started coming in better than expected. You have a strong back drop because corporations are making strong profit reports and you are talking about profits up 6% in the second quarter on top of a 15% gain in profits in the first quarter. Revenue. Sometimes earnings you can manipulate to cut costs and you keep cutting things until earnings get better and better but you can’t manipulate revenue. Revenue is what the company is generating. Revenue is expected to be up 6% in the second quarter. There you’re seeing better than expected numbers. Initially yes, it was all about the Trump rally. Today it’s anticipation that the president will get his policies through like tax reform but also a back drop that has gotten better. Businesses are doing much better."