As all eyes turn to mourning the sudden loss of Ruth Bader Ginsburg, the markets are reflecting a downturn as concerns shift from a new stimulus bill to what will happen in the Supreme Court. Yahoo Finance’s Rick Newman joins The Final Round panel to discuss what these trends in stocks could be saying about the political situation in Washington, D.C.
SEANA SMITH: Welcome back to "The Final Round." Well, one of the reasons for today's sell-off is some of the DC risks spilling over into the market. And one of those headwinds is no stimulus.
Now, the odds of getting a deal may have gotten even more unlikely. And, Rick Newman, it's interesting because lawmakers have failed to get a deal done over the past two months when it comes to another round of stimulus. And, now, of course, the death of Supreme Court Justice Ruth Bader Ginsburg is putting the odds of that even lower.
RICK NEWMAN: Yeah, the Senate can only do so many things at once, believe it or not, even though it's a highly staffed and paid organization. Sometimes it seems like they rarely do one thing at a time. I think this fight over the next Supreme Court justice is absolutely going to dominate the Senate. And even if it goes smoothly and if you go back to the Brett Kavanaugh nomination, that seemed to be going smoothly for a while. And then all hell erupted with those accusations of sexual harassment when he was in high school-- you know, high school.
So that just threw the whole thing into a state of turmoil. So surprises do happen during this process. And that could happen again. And then, come October, we're going to have a lot of senators who are up for re-election. That's one third of them.
They're going to be out campaigning. So it actually does get very hard for the Senate to get anything done at this time of year leading into an election. The House has already passed a bill. It's gigantic.
No one thinks the Senate would ever just rubberstamp the House bill. They would have to negotiate. But I think the odds of any kind of negotiation happening in the next few weeks just fell by about half.
- Hey, Rick, getting to the Supreme Court justice nominee and that process, though, getting back to that, there have been some reports that President Trump and Mitch McConnell are not on the same page here, that the president wants to get this thing through. And he thinks that's his best bet to help him get re-elected, whereas Mitch McConnell wants to slow jam it, have it happen after the election, because he wants to-- he thinks it might hurt his senator's chances of getting reelected. And he wants to stay Senate majority leader.
RICK NEWMAN: Yes, and even to the point that Mitch McConnell, I mean, if it does end up being that clear-cut, that he might end up making kind of a devil's bargain in that he does something that could give control of the House to the Democrats. And he would lose his own job as Senate majority leader, if he rams this through. However, you know, I think this is going to come down to how Mitch McConnell plays it. You know, it's all-- it's always possible that he talks to the Republicans in the Senate. They can only afford to lose three, who won't vote for a nominee before the election.
And they've already lost two. And you've got another one, John Cornyn, a senior member of the Senate, saying he doesn't see a need to rush it, which raises the possibility that it could be a vote in a lame duck session, which would be even crazier in a way, if Joe Biden is the president and, yet, a Republican-controlled Senate is voting on the nominee of the outgoing president. So the mind spins at all-- at all of these possible things. But that's 2020.
SEANA SMITH: Certainly is. Well, it's going to be an exciting next couple of weeks, that's for sure. All right, Rick Newman, thanks for breaking that down for us.