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%.

 

The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. The information contained herein has been compiled from sources believed to be reliable; however, there is no guarantee of its accuracy or completeness. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. The material provided in Daily Market Commentaries or on this website should be used for informational purposes only and in no way should be relied upon for financial advice. Please be sure to consult your own financial advisor when making decisions regarding your financial management. Members of FINRA and SIPC, Capitol Securities Management is a privately owned full-service retail brokerage and investment advisory firm headquartered in Richmond, Virginia. For nearly 30 years, we have been serving the needs of our investors. Today, more than 200 Capitol Securities Management investment professionals and support staff serve approximately 18,000 customer accounts from Southern Florida to the New England coast.