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Here's why Trump turmoil 'doesn't seem to matter' to investors, says top strategist

  • Stellar earnings last week appear to show that the turmoil in Washington "doesn't seem to matter," investment strategist Simeon Hyman says.
  • "We have 6 percent top-line growth and double-digit earnings growth," he says.
  • Investors kept their focus on this week's earnings reports, including Apple.

Stellar earnings last week appear to show that the turmoil in Washington "doesn't seem to matter," investment strategist Simeon Hyman told CNBC on Monday.

"We have a little over half the companies reporting so far. We have 6 percent top-line growth and double-digit earnings growth," Hyman, head of investment strategy at ProShares Advisors, said on "Squawk Box." "This type of earnings growth is more than enough to support current valuations levels."

Also on CNBC, Citi Chief Equity Strategist Tobias Levkovich said most investors are "ignoring" the political antics coming out of Washington and hasn't invested much hope in proposed policies.

"Because they know there is so much political backdrop to it," he said Monday on "Squawk on the Street." "Should there be a tax package on the table in September, people will take a hard look on it."

U.S. stock index futures were higher Monday as investors kept their focus on earnings reports. The Dow Jones industrial average is riding a four-day win streak and coming off a record close. S&P 500 and Nasdaq have fallen for two straight sessions but are positive for the month.

Tech company Apple is scheduled to disclose its earnings results on Tuesday, with analysts expecting big things, including profit from its iconic iPhone.

Hyman spoke the week after investors witnessed drama coming out Washington. President Donald Trump said Friday that Reince Priebus was out as White House chief of staff and that John Kelly, a retired Marine general, will succeed him.

The week also included a profanity-filled tirade from Trump's newly appointed communications director, Anthony Scaramucci, in an interview with The New Yorker.

Senate Republican also failed to pass a "skinny" Obamacare replacement bill. Three GOP defections — Sens. Susan Collins of Maine, Lisa Murkowskiof Alaska and John McCain of Arizona — sank the measure in a 49-51 vote.

Despite failing to pass, Trump and members of his administration told Republicans to stick with trying to pass a health-care bill. Congress and Trump's administration have also begun focusing tax reform legislation.

On Friday, White House budget director Mick Mulvaney told CNBC the administration wants the biggest and most aggressive tax reform that can pass. He said passing tax reform by the end of the year is "absolutely doable."

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