18 Oct HOW MUCH LOWER CAN THIS ELECTION GO?
Like many I am disgusted with the two candidates of the 2016 election. One is a boorish thug and the other is engrained in the establishment believing the rules do not apply to her. The media is more focused upon sexual issues 15-30 years ago rather than the major issues facing the country today.
For many November’s election comes down to who one less detests.
With this written however, the attitude can radically change if there is a proverbial bombshell that indicates a gross violation of law that indicates power overtaking justice. Yes there are examples of such but there must be some event that is so blatant that it turns even the most ardent of supporter where all demand justice.
There is little I write about yesterday’s market action. Most are waiting for the approximate 80 S & P 500 earnings reports that will be posted in the next four days, as well the Beige Book and remarks from various Fed speakers. Treasuries and utilities were nominally higher, perhaps on a dead cat bounce as both groups have declined about 10% in recent trading sessions. Both oil and the dollar fell.
Last night the foreign markets were up. London was up 1.17%, Paris up 1.37% and Frankfurt up 1.24%. China was up 1.40%, Japan up 0.38%and Hang Sang up 1.55%.
The Dow should open moderately higher on increased optimism the world’s largest economy is strong enough to cope with a gradual pace of tightening. The odds of a December rate hike remain unchanged at 67%. Earning season also accelerates today. How will the results be interpreted? Revenues are expected to rise while profits are expected to fall, an indicator of the “price is the only determinate of purchasing decision” economy. The 10-year is unchanged at 1.77%.