A rift between the Treasury Department and the Federal Reserve complicates US economic security as coronavirus cases continue to rise, the CDC issued a warning that US citizens should not travel for the Thanksgiving holidays, and Congress is signaling they’ll restart stimulus talks.

Treasury Secretary Steven Mnuchin sent Fed Chair Jerome Powell a letter asking for the Fed to return $455B allocated for the CARES Act back in the Spring.  Mnuchin said the funds have served their purpose and should be made available for Congress to reallocate.  In an email, the Fed voiced their concern that they “would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.”

Meanwhile the World Health Organization has recommended that doctors not use Gilead Sciences (GILD) antiviral drug remdesivir for treating hospitalized COVID-19 patients.  A recent British medical journal publication published a report that remdesivir shows no evidence that it improves COVID-19 survival rates.  Gilead is disputing the WHO’s recommendation.

Earnings include retailers FL and HIBB.

The economic calendar is bare.  The Fed’s Kaplan and George speak at an energy conference in Dallas starting @ 9:30am ET.

Volatility is starting to level out as markets wait for a reason to move.

No Size bias as Globex volume was mixed.

A Fed rate course reversal???  St. Louis Fed President James Bullard said yesterday that a “darkened” global trade narrative could slow the growth of the US economy, followed by a “downward policy rate adjustment may be warranted soon.”  The bulls sent US stocks up into yesterday’s cash close.

Markets will be watching Fed speak closely this morning: John Williams @ 8:30am EST and Chair Jerome Powell @ 9:55am EST.  CME futures predict a 50% chance of a rate cut in July with 2 more before 2020.  That would be quite a reversal in Fed policy…

FAANG companies are in US lawmakers’ crosshairs.  A House Judiciary committee announced a top-to-bottom review of US tech companies and the DOJ and FTC announced they would tackle large monopolistic companies such as Alphabet, Apple, Amazon, and Facebook.

Dem David Cicilline of RI said “The growth of monopoly power across our economy is one of the most pressing economic and political challenges we face today…  market power in digital markets presents a whole new set of dangers.”

In the same vein, Apple announced they will be killing iTunes and instead split music, podcasts, and TV into separate apps.  Earnings today include CRM, AMBA, GWRE, CBRL, GME, TIF, LE, HQY, and NAV.

The economic calendar is light with Factory Orders and Constructions Spending @ 10:00am EST.  Volatility continues to tick up and if Powell hints at decreasing rates, the ES could move today.  Size bias is a divergent short into Bullard’s 8:30am talk.

US and global stock markets are a little rattled by Trump comments concerning a scheduled June 12 Singapore meeting with North Korea and US trade war progress with China.  The US and South Korea held a joint military exercise last week and now Trump is saying there’s a good chance the North Korean meeting will not take place on June 12, but still a good chance it will at some point in the future.  About the trade negotiations with China, Trump said it’s “a start” but he was “not pleased” with the progress.  US retailers Target and Lowes missed earnings estimates while jeweler Tiffany & Co. crushed their expectations.  The economic calendar focus is Oil @ 10:30am and Fed minutes @ 2:00pm EST.  Before the main events, we have PMI Composite Flash @ 9:45am EST and New Home Sales @ 10:00am EST.  The ES has pulled back enough where upside volatility should not be hindered as we’ve experienced over the last week.  Volatility continues to contract, but there’s more room to expand now.  Size bias is short on increased Globex volume into the US session open.