Acting FBI Director Andrew McCabe in the hot seat today has captured the attention of everyone, including the stock market.  Although the Senate hearing was to cover all areas of the intelligence community, and risks to the nation, the subplot of what happened behind the scenes of the Comey firing, and if there is anything to the lingering Russia investigation, dominates. 

It has been riveting with lots of intrigue but no answers or conclusions.

McCabe versus White House

• Comey had “deep and positive” connection with “vast majority” of FBI
• Russian investigation is “significant”
• Will not update White House on Russia investigation
• Has resources need for investigation – if needs will ask Congress

Other Notable Comments

• You cannot stop the people of the FBI from doing the right thing
• Cannot comment on any conversations the director may have had with the president
• No effort to impede investigation
• Held director in highest regard…been greatest privilege

The Market

Meanwhile, the market has climbed off the lows as it grapples with great macro data on the economy and realities that some industries like retail are in a deep crisis.  Moreover, Aetna pulling completely out of Obamacare puts even more pressure on the Senate to come up with their version of replacement.

Lots of noise and confusion, except through it all, the economy is moving in the right direction, and that’s your foundation for the rally.