Investors turned cautious after President Trump fired his FBI chief. But as Fred Katayama reports, the reaction was rather muted.
Stocks on Wall Street dipped at the market open Wednesday. Investors displayed a muted response to President Donald Trump's surprise move to fire FBI Director James Comey. First Standard Financial's Peter Cardillo says the markets mostly shrugged off the Comey news because it's focused on the strong earnings corporations are reporting. But he says that view could change if the outcry over the firing harms the prospects for tax reform. SOUNDBITE: PETER CARDILLO, CHIEF MARKET ECONOMIST, FIRST STANDARD FINANCIAL, (ENGLISH) SAYING: "It could be Congress versus Trump and saying, we're not going to basically adhede to the prospects of tax reform or make it very difficult. And at that point, I think you could see the market react negatively because the market is certainly moving higher on good fundamentals which is the good earnings season and the economy basically growing." (9:07:18) Disney's falling shares dragged on the Dow after its mixed earnings report. A decline in consumer and healthcare stocks weighed on the S&P 500. Some investors shifted to safe haven assets. The dollar eased against the yen. Gold and bond prices rose.