By Bill Hornbarger, Chief Investment OfficerPrint This Post
Three Things to Watch
- The U.S. mid-term elections will dominate the headlines this week. With the country so evenly divided, it is possible that control of Congress won’t be known for several days after Tuesday. The consensus expectation is for Republicans to take the House and most polls and betting sites show Republicans also controlling the Senate. Historically, the stock market has performed better with a divided government than when one party controls the House, Senate, and presidency.
- The Consumer Price Index (CPI) will be the headline economic report this week. Inflation remains top of mind for the Fed and consumers and the October report is expected to provide little relief. Overall CPI is expected up 7.9% year-over-year with core CPI up 6.5%. This compares to 8.2% and 6.6% last month, respectively.
- Third-quarter earnings continue to roll in with Disney, Occidental Petroleum, and DuPont as a few of the highlights. With 433 members of the S&P 500 already reporting, 70% have posted positive earnings surprises versus 75% with positive surprises last quarter. The aggregate surprise for this quarter is +3.1%.
Three Things to Know
- In September 1999, daylight saving time helped prevent a terrorist bombing. When West Bank terrorists failed to realize that Israel had switched back to standard time, their bombs exploded an hour too early, killing three terrorists instead of the intended victims. (Source: factretriever.com)
- The Powerball jackpot is now estimated at $1.9 billion, the largest ever. (Source: The California Lottery Commission)
- The U.S. Strategic Petroleum Reserve moved down for the 60th consecutive week to its lowest level since 1984. The 33% decline in reserves this year is the largest on record by a wide margin. (Source: Charlie Bilello)
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.