1 big thing: The Trump correction
The stock market entered correction territory (when stocks fall 10% or more from a recent market high) for a few minutes today, plummeting 1,500 points before rebounding slightly to a 1,175 point loss on the day.
Why it matters: It was the largest one-day point decline in history, and between today and Friday's 666 point drop, the market has erased its 2018 gains.
The big picture, as noted by the N.Y. Times on Friday: "[W]hat is really worrying investors is that the fuel behind this stock market boom, namely cheap money from global central banks, may disappear sooner than they thought... On Friday, the yield on the 10-year Treasury note... rose to more than 2.8 percent, the highest level since early 2014."
- Political shot, from Axios' Dan Primack: "If this continues — and that's a big if — it's a reflection on how White Houses shouldn't overstate the importance of stock market gains. If Trump deserves credit on the upswing, ipso facto..."
- Political chaser, from Axios' Jonathan Swan: "One of the strongest arguments Gary Cohn and Steven Mnuchin have been making to Trump to persuade him not to blow up NAFTA or take hardline protectionist trade actions is 'Mr. President, the economy is booming and the stock market is setting records under your leadership. Why would you risk that with these trade actions?' If they no longer have that argument, what else do they have in their quivers to persuade Trump not to follow his most hardline instincts on trade?"
"I think there's a lot more momentum in the stock market... tax cuts are not priced in."— White House economics adviser Gary Cohn to me on December 20th
2. What you missed
- The Supreme Court declined the Pennsylvania GOP's request to delay the drawing of a congressional map before this year's elections. More.
- The Uber/Waymo trial is here: Waymo's lawyer spent much of his opening statement today to the jury painting Uber (and its then-CEO Travis Kalanick) as committed to winning the self-driving car race "at all costs"—including through cheating. Details. ... Slides.
- Facebook is looking to open up its "Watch" video platform to more individual creators, influencers and brands, CNBC reports. It's a step toward making its video platform look more like YouTube than television. Details.
- Trump accused "Little" Rep. Adam Schiff of leaking confidential information. The House Democrat responded by mocking Trump's use of "executive time." More.
- Sen. Chris Coons (D-Del.) and Sen. John McCain (R-Ariz.) unveiled a bipartisan immigration bill today which gives permanent legal status to Dreamers who have been in the U.S. since 2013 and ramps up security on the southern border. Trump isn't a fan. Details.
3. Trump quote of the day
"Even on positive news, really positive news...they were like death. And un-American, un-American. Somebody said treasonous... can we call that treason? Why not... They certainly didn't seem to love our country very much."— President Trump today, on Democrats during his State of the Union