By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- Economic data will take a backseat, with many releases being postponed until the government shutdown is resolved. Last week’s employment report for September was the first major casualty.
- The focus will shift to the onslaught of U.S. Federal Reserve (Fed) speakers this week (over 20 in total), highlighted by Fed Chairman Powell on Thursday and newly appointed Fed Governor Stephen Miran, who voted for a 50-basis-point cut at the last meeting.
- Third-quarter earnings season kicks off in earnest next week but will get some early releases this week, including Delta Airlines and Pepsi.
Three Things to Know
- Prior to the 1980s, many federal agencies continued to operate during shutdowns while minimizing all nonessential operations and obligations, believing that Congress did not intend that agencies close down while waiting for the enactment of annual appropriations acts or temporary appropriations. However, President Carter’s Attorney General Benjamin Civiletti issued two opinions in 1980 and 1981 that more strictly interpreted the Antideficiency Act in the context of a funding gap, along with its exceptions. The opinions stated that, with some exceptions, the head of an agency could avoid violating the Act only by suspending the agency’s operations until the enactment of an appropriation. (Source: Wikipedia)
- Before the current event, there have been 21 government shutdowns, ranging in duration from one day to 34 days. (Source: ThoughtCo)
- The just-completed third quarter featured the largest quarterly underperformance by the S&P 500 to the rest of the world since 1988. (Source: @Barchart)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.