Dow rises 180 as Trump DUMPS Tillerson as Secretary of State
THE DOW Jones is on the up despite a White House announcement confirming that Secretary of State Rex Tillerson will be replaced by current director the Central Intelligence Agency, Mike Pompeo.
Dow Jones LIVE: Dow is up despite Trump's sacking of Tillerson
The Dow Jones Industrial Average has risen 180 points, or 0.7 percent, at 25,355 after new data points to US inflation remaining modest.
The news that Secretary of State Rex Tillerson will be sacked and replaced by current director the Central Intelligence Agency, Mike Pompeo has yet to affect the markets but a senior White House official told Reuters that Tillerson's departure was a result of the President's plans to install a new team ahead of planned talks with North Korean dictator Kim Jong-un later this year.
US President Donald Trump fired Tillerson on Tuesday after a series of public rifts over issues including North Korea and Russia.
President Trump has moved another loyalist into the Whitehouse by replacing his chief diplomat with CIA Director Mike Pompeo.
US futures initially fell on the news, but recovered all of the losses and moving north.
Mike Pompeo, Director of the CIA, will become our new Secretary of State. He will do a fantastic job! Thank you to Rex Tillerson for his service! Gina Haspel will become the new Director of the CIA, and the first woman so chosen. Congratulations to all!
— Donald J. Trump (@realDonaldTrump) March 13, 2018
President Trump: Rex Tillerson didn’t think the same as me
I don’t think Tillerson out and his replacement is a shock to the market that lasts very much at all. The turnover in the Trump administration is so high.
David Kotok, chairman Of money management firm Cumberland Advisors told CNBC: “I don’t think Tillerson out and his replacement is a shock to the market that lasts very much at all. The turnover in the Trump administration is so high.”
The news comes just a week after the departure of Trump’s economic adviser Gary Cohn in the wake of a surprise turn towards new trade tariffs on steel and aluminum.
Trump also said he was considering conservative commentator Larry Kudlow “very strongly” to become his next top economic adviser.
More to follow...