January 17, 2019 2:00 p.m. Mid-Day Turnaround -by- Lester Murray

A quiet and uneventful morning became a little less so after Dow Jones reported that the Trump administration is considering lifting the tariffs it has imposed on a long list of Chinese imports. Details on the source of the report and what else is in it are a little sketchy at the moment.  Regardless of its veracity, the report's effect has been sudden and significant.  Investors in the DJIA have turned a mild sell-off into a significant rally while other investors are hitting bids in the Treasury market.  The Ten-Year has given up about 1/4 point in price and that has pushed the yield up a few basis points to 2.75%.

Earlier in the day, the Philadelphia Fed Business Outlook Survey Index jumped unexpectedly to 17 from 9.1.  Analysts weren't expecting any change. This helps to counter the plunge experienced by the Empire Manufacturing Index earlier in the week.  The Brits are still trying to figure out the whole Brexit thing but don't seem to be making much progress.  After fending off another confidence vote attack earlier in the week, Theresa May still has seven lives left.  This could take a while.