“Financial markets will find & exploit hidden flaws, particularly in untested new innovation — and do so at a time that will inflict the most damage to the most people” — Raymond F. DeVoe

1. Trump Budget to Hike Military Spending — President Donald Trump’s first budget proposal will seek a nearly 10% boost in military spending, with offsetting cuts from nondefense agencies, financed partly by cuts to the State Department, EPA and other non-defense programs. In a speech to supporters, he pledged “one of the greatest military buildups in American history.”
2. France’s Q4 GDP Growth Doubles — driven by consumption and investment, France’s economy expanded at a faster pace in Q4, with GDP rising 1.2% year-on-year. The consumer price index in February also revealed a 1.2% rise on the year, but missed forecasts, while spending figures showed a 1.4% increase. GDP revisions will also be released in the U.S. A second estimate is expected to come in at an annualized 2.1% for Q4.
3. Fidelity Cuts Trading Commissions to $4.95 from $7.95 and TD Ameritrade Cuts Commissions to $6.95 — Fidelity blew up the online brokerage sector after cutting stock and ETF trading commissions to $4.95 from $7.95, following Schwab (NYSE:SCHW), which slashed its commissions to $6.95 from $8.95 in early February. Hit hardest was TD Ameritrade (NASDAQ:AMTD), which tumbled 10.5%, and immediately announced a cut in its commissions to $6.95 from $9.99.
4. Venezuela Running Out of Cash to Pay Debt — Venezuela only has $10.5B in foreign reserves left, according to its most recent central bank data, and still needs to make $7.2B in debt payments for the rest of 2017. The thinning reserves paint a dire financial picture as the country faces a humanitarian crisis sparked by an economic meltdown. Inflation is expected to rise 1,660% this year and 2,880% in 2018.
5. Snap IPO Brings Big Fees for WallStreet — shares of Snapchat (SNAP) popped in the company’s IPO on the New York Stock Exchange, finishing the day 44% higher at $24.48 per share. One big winner of the offering is Morgan Stanley (NYSE:MS), the lead underwriter in SNAP’s public debut (it’s set to bring in almost $26M in fees). Goldman Sachs (NYSE:GS), another key underwriter, could make as much as $21M from the listing.

The week ahead — Economic data from Econoday.com: