Wall Street's not so Merry Christmas

New York Stock Exchange. Photo: Drew Angerer/Getty Images

The Dow had its worst Christmas Eve ever, dropping 653 points to close at 21,792 — and all 11 of the S&P 500 sectors are now in negative territory in 2018, Bloomberg reports.

Why it matters: Treasury Secretary Steven Mnuchin's unsettling weekend statement that the big banks have enough liquidity clearly didn't calm anyone down.

Flashback: 82 days ago, the Dow closed at a record high — 26,828 — on a day where this newsletter focused on the Khashoggi coverup and the power shift driven by #MeToo.

Driving the news: "Mnuchin convened a call [today] with top regulatory officials ... to discuss coordination efforts to assure normal market operations. Regulators on the call said that markets were functioning normally..." [WSJ]

  • Prudential Financial strategist Quincy Krosby: “We’ve gone through situations before where it’s absolutely normal for the secretary of Treasury to reach out to the private sector... But what’s bad is this made the papers, and says the government is very worried." [WSJ]

What they're saying:

  • Trump: "The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!"
  • Chuck Schumer and Nancy Pelosi: '"It's Christmas Eve and President Trump is plunging the country into chaos. The stock market is tanking and the president is waging a personal war on the Federal Reserve..."

Be smart: We’ve transitioned from a glass half-full bull market to a glass half-empty environment. This is much different than earlier this year when no amount of bad news could shake the market. Now it’s the opposite: good news isn’t as powerful as it used to be.

The bottom line: “The markets going down will eventually create an economic problem... People who spend money as consumers, if they have stock exposure, they’re reconsidering if they’re going to buy a $1,000 present — they’ll buy a $200 one.” [Bloomberg]

What's next

New York Times endorses Elizabeth Warren and Amy Klobuchar for president

Democratic presidential candidates Sens. Elizabeth Warrenand Sen. Amy Klobuchar at the December 2020 debatein Los Angeles. Photo: Justin Sullivan/Getty Images

The New York Times editorial board has endorsed Sens. Elizabeth Warren and Amy Klobuchar for president, in a decision announced on national television Sunday night.

Why it matters: The board writes in its editorial that its decision to endorse two candidates is a major break with convention that's intended to address the "realist" and "radical" models being presented to voters by the 2020 Democratic field.

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What's next in the impeachment witness battle

Sens. Susan Collins (R-Maine) and Lisa Murkowski (R-Alaska). Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Senators will almost certainly get to vote on whether or not to call impeachment witnesses. The resolution laying out the rules of the trial, which will be presented Tuesday, is expected to mandate that senators can take up-or-down votes on calling for witnesses and documents.

Yes, but: Those votes won't come until the House impeachment managers and President Trump's defense team deliver their opening arguments and field Senators' questions.

Inside Trump's impeachment strategy: The national security card

White House counsel Pat Cipollone and acting Chief of Staff Mick Mulvaney. Photo: Jabin Botsford/The Washington Post via Getty Images

Trump officials say they feel especially bullish about one key argument against calling additional impeachment witnesses: It could compromise America's national security.

The big picture: People close to the president say their most compelling argument to persuade nervous Republican senators to vote against calling new witnesses is the claim that they're protecting national security.