By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- The Consumer Price Index report for September will be released next week on Oct. 24, despite the shutdown that has impacted other government releases. In its absence, investors will focus on trade and the shutdown. Sunday rhetoric from President Trump was more conciliatory, positioning Friday’s news that was responsible for the downdraft in stocks as “one big misunderstanding between Trump and Xi.” Crypto currencies rallied Sunday, giving hope that the equity markets will follow suit Monday morning.
- After seven failed attempts, the Senate is not scheduled to vote again on legislation to fund the government until Tuesday, Oct. 14, according to reports. This would lead us into the 14th day of the 2025 government shutdown. The rhetoric from both sides continues to mount amid layoffs, rescinded layoffs, uncertainty about pay and healthcare for government employees, and growing concerns over the economic impact. The betting sites are now pricing the highest odds that the shutdown will last until at least Oct. 25.
- The third-quarter earnings season kicks off in earnest this week with more than 10% of the S&P 500 members expected to report. Major U.S. banks will be first up in focus with JP Morgan, Goldman Sachs, Wells Fargo, Citi and Bank of America all on the tapes. Good news from earnings could help improve the mood after Friday’s worst sell-off in six months.
Three Things to Know
- The S&P 500 Index began its current bull run on Oct. 12, 2022, soaring 83% in that time and adding about 28% trillion in market value. (Source: Bloomberg)
- The Congressional Budget Office recently estimated that approximately 750,000 employees could be furloughed each day of a shutdown. Their total compensation would cost the U.S. economy roughly $400 million each day they are out of work. (Source: The Hill)
- On Oct. 12, 1945, Private First-Class Desmond T. Doss stood before President Harry Truman at the White House to receive the Medal of Honor, the nation’s highest military decoration. Doss was a pacifist who refused to carry a weapon when he was called to service in World War II, and he was mocked by fellow soldiers for his beliefs. During the battle of Okinawa, he braved relentless gunfire to rescue roughly 75 wounded men, lowering them, one by one, down a steep cliff, again without a weapon. (Source: Bespoke)
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.