After sharp bounce, market may take a ‘breather’ on lingering election uncertainty, virus outbreak

first_imgThere are a few economic reports in the week ahead, including consumer price index inflation data Thursday and the producer price index Friday. The earnings season is beginning to slow down, but there are still dozens of reports, including from McDonald’s on Monday and Walt Disney, Applied Materials and Cisco on Thursday.“I think next week is just setting up to be a breather. There’s still a lot to figure out here,” said Grohowski. “The equity market’s reaction has been I think understandable and probably better than many might have expected.”Grohowski said there may be uncertainty for awhile. “What I’m thinking about is the Senate races. Part of the market reaction has been relying on this divided government.” After the votes are all in or recounted, “a sweep is unlikely but possible.”“I think the longer this stays uncertain and messy, the more the post-election bounce comes into question,” he said.Different than 2000It would not be unusual for the stock market to sell off before rallying into year end, according to Sam Stovall, chief investment strategist at CFRA. Stovall does not expect the type of turbulence there was in 2000, when former Vice President Al Gore lost to George W. Bush in a tight race that ultimately went to the Supreme Court.“In 2000, they were not expecting hanging chads. But they do expect a contested election this time. I think in many ways the market anticipated this,” said Stovall.But the market, after its election week surge, could pull back. “Historically, the market goes down in the month of November, after a Democratic victory,” said Stovall. Since World War II, Democrats won the White House nine times, and the market fell an average of 0.5% in November in those years, compared to the average gain for all Novembers of 1.4%, he said.After those Democratic victories, stocks then rose 1.9% in December on average, more than the normal 1.5% gain for all Decembers.Strategists said they currently do not expect the kind of lockdowns that states ordered when the pandemic started to spread in March. But there could still be some impact that could be negative for stocks.Grohowski said he sees some signs of optimism for the market. Strong data, like third quarter GDP, October’s drop in unemployment to 6.9%, and the better-than-expected earnings are all positives for the market. Another is that investors are so skeptical.“What does still exist is a great deal of dry powder. There’s $4.3 trillion in money markets alone,” he said. “I can tell you, being in touch with investors of all shapes and sizes this week, there’s still a lot of skepticism. From a contrarian view, high cash and a lot of skepticism is a contrarian indicator.”Week ahead calendarMonday Earnings: McDonald’s, SoftBank, Beyond Meat, Simon Property Group, Ambac Financial, Tilray, ZoomInfo, Occidental Petroleum, Myriad Genetics, Taubman Centers, International Flavors and Fragrances, Norwegian Cruise, Canopy Growth, Aurora Cannabis, Party City 1:30 p.m. Cleveland Fed President Loretta Mester2:00 p.m. Senior loan officer survey Tuesday Earnings: Lyft, Advance Auto Parts, Adidas, D.R. Horton, Rockwell Automation, CyberArk Software, Hain Celestial, Rackspace, Ashland, Rocket Cos 6:00 a.m. NFIB small business survey10:00 a.m. JOLTS10:00 a.m. Boston Fed President Eric Rosengren WednesdayVeterans DayBond market closed, stocks market open regular trading hours Earnings: Air Products, DouYu, Lemonade, Reynolds Consumer, Vroom, Fossil Thursday Earnings: Walt Disney, Palantir Technologies, Applied Materials, Beazer Homes, Cisco Systems, Siemens, Burberry, Brookfield Asset Management, Unity Software8:30 a.m. Jobless claims8:30 a.m. CPI1:00 p.m. Chicago Fed President Charles Evans2:00 p.m. Federal budget2:00 p.m. New York Fed President John Williams Friday Earnings: Manchester United, Draftkings, Vipshop 7:00 a.m. New York Fed’s Williams8:30 a.m. St. Louis Fed President James Bullard8:30 a.m. PPI10:00 a.m. Consumer sentiment – Advertisement – The S&P 500 was up more than 7% in the past week, and the Nasdaq rose nearly 9%. Technology, communications services, health care and discretionary stocks led the rally, after it appeared Democrat Joe Biden could be the next president but with a split Congress.The election was still unresolved heading into the weekend, but even if Biden is declared winner, close votes and lawsuits are likely to result in recounts. The Senate appeared to be in Republican hands, but the margin of control is likely to be tight, and runoff elections are required for two Senate seats in Georgia in early January.“I think the uncertainty is going to catch up the market on a short-term basis,” said Leo Grohowski, BNY Mellon’s Wealth Management chief investment officer. “Perhaps next week could be a drifting lower kind of week.”- Advertisement – Spencer Platt | Getty Images News | Getty Images At the same time, there has been a surge in daily new coronavirus cases to more than 122,000. Economists are concerned that the economic recovery could suffer as some states could restrict activities and consumers may pull back heading into the important holiday season.The Fed, in its post-meeting statement Thursday, repeated that the course of the virus could help determine the path of the economy.- Advertisement – Ahead of the election, the market had been betting on a “blue wave,” where Biden would take the White House and Democrats would get control of the Senate, giving them total control of Congress. But when it appeared the Senate would stay in Republican hands, stocks surged on the idea of gridlock, which would keep Biden from implementing tax increases and lots of new regulations. After an initially exuberant election reaction, stocks may trade more cautiously in the week ahead, as investors watch election developments unfold and track the course of the coronavirus. – Advertisement –last_img read more

Sunday blog: Talking Syria decision, Vandenburg, Wellington football, and Elway

first_imgby Tracy McCue, Sumner Newscow — Five Cueball thoughts for Sept. 8, 2013… 2. Vandenburg.I remember my wife to be and myself driving down Vandenburg Street for the first time when looking at moving to Wellington and making the obligatory “car lost in the pot hole” joke — something that has probably been uttered 5,383,754 times by different people.Vandenburg looking south to Pizza Hut intersection.It’s 21 years later, and that joke is now history and reserved for other places like H Street and Westurban roads (any progress on that issue boys??).As Wellington City Council member Jim Valentine said at last week’s city council meeting “Vandenburg sure feels smooth on the feet. I can’t imagine how it will feel in a car.”It’s going to be a sweet road. The great thing about it is it comes at a cheap price to the community of Wellington, as the Wellington City Management did a good job of procuring a Kansas Department of Transportation Grant that calls for 90 percent state funding.Vandenburg, scheduled for completion on Nov. 1, is huge for Wellington. Once completed it needs to be designated a U.S. 81 bypass highway.The road has always been well traveled in its pot-hole glory. Imagine what kind of traffic it will generate when it re-opens. It should be a key selling point on the economic development front – convincing those who need to get their wares in and out of town as quickly as possible. Other roads such as A Street and the roundabout will not receive as much wear and tear with Vandenburg’s reopening.Thumbs up to the city and state officials with getting this project completed. It was long overdue. 5. Shout out of the week (Chief fans should stop reading now). This week’s shout out goes to John Elway (hey it’s my column). Elway is the gift who keeps giving for Denver Broncos fanatics worldwide.John ElwayIn 1983, when he was traded for from the Baltimore Colts, he immediately brought a sense of excitement to the state of Colorado that has never been surpassed.He then took the Broncos to five Super Bowls, winning two of them.But after becoming the first Bronco to get into the Pro Football Hall of Fame, he continues to keep giving in his second stage of his life as the general manager of the team.Elway brought Denver Peyton Manning. If you watched the game Thursday night you realized what a nice thing that was for him to do.Football is back and the Broncos Orange are in full force. What a great time to be alive. 1. Obama and Syria.Obama is expected to address the U.S. Senator this week seeking permission to use limited military force in a civil war in Syria.President ObamaI’ll give Obama credit. He is doing all the right things diplomatically on Capital Hill. Recklessness is not a trademark of this administration.But what is our American interest by involving ourselves in this war? Yes, the atrocities of chemical weapons are real. But in the end, will it benefit the U.S. to stabilize this country? American foreign policy for a Century has been to eradicate the Commies in places they don’t need to be and to make sure the Middle East doesn’t fall into the hands of some wacko who won’t let us have any oil and blows up Israel.One can argue that the U.S. should have never gotten involved in a war with Iraq. But if you remember a decade ago, there was genuine fear that Saddam Hussein had weapons of mass destruction and he could easily used it on Israel. That fear alone for a genuine American interest. In hindsight, Saddam never had WMDs and whether the Bush administration was too impulsive and/or lied to the public in declaring war, is a whole different debate I don’t have time to get into.The point I’m making is, we have a U.S. Military. We pay taxes to maintain this military to protect our interests around the world. We maintain law and order as long as there is an indirect benefit to our way of life.We shouldn’t involve ourselves nor can we afford to involve ourselves in every humanitarian cause that does nothing for our country. The U.S. involvement in Syria is the equivalent of having the city of Wellington donate money to pay for better streets in Wichita.If someone can convince me that the U.S. will be a better country by involving ourselves and putting our servicemen at risk in this Syria civil war, then I may reconsider my position. But until then, I’m vehemently against involving ourselves in something that could turn into a full-scale war with no lasting benefits. Close Forgot password? Please put in your email: Send me my password! Close message Login This blog post All blog posts Subscribe to this blog post’s comments through… RSS Feed Subscribe via email Subscribe Subscribe to this blog’s comments through… RSS Feed Subscribe via email Subscribe Follow the discussion Comments (15) Logging you in… Close Login to IntenseDebate Or create an account Username or Email: Password: Forgot login? Cancel Login Close Username or Email: Password: Lost your password? Cancel Login Dashboard | Edit profile | Logout Logged in as Admin Options Disable comments for this page Save Settings Sort by: Date Rating Last Activity Loading comments… You are about to flag this comment as being inappropriate. Please explain why you are flagging this comment in the text box below and submit your report. The blog admin will be notified. Thank you for your input. -2 Vote up Vote down **** TRACY · 361 weeks ago DO YOU KNOW VANDENBURG ST WAS NOT DONE RIGHT THE FIRST TIME? THE CITY RUN OUT OF MONEY ON IT, ONE LAND OWNER WAS ASK IF THE CITY COULD CUT OUT DRIVEWAYS, THEY SAID THEY WOULD PUT THEM LATER. HOW COME THEY ARE NOT PUTTING THE DRIVEWAYS IN NOW. I SEE THEY REMOVE AND REPLACED DRIVEWAY NEAR THE HIGH SCHOOL THAT WERE NOT OLD?? Report Reply 0 replies · active 361 weeks ago +4 Vote up Vote down longtimeresident · 361 weeks ago Hey Cue ball, It’s nice that life is great but hopefully after Nov 17 and Dec 1 your bronco will have a Chief on its back holding the reins Report Reply 0 replies · active 361 weeks ago 0 Vote up Vote down JustMe · 361 weeks ago “It should be a key selling point on the economic development front” Oh lord…..really? If this is what you recommend as a selling point for this town, then no wonder we aren’t attracting businesses. Report Reply 2 replies · active 361 weeks ago +2 Vote up Vote down Ted Logan · 361 weeks ago “there was genuine fear that Saddam Hussein had weapons of mass destruction ” Just depends on whose Kool-aid you were drinking. Report Reply 0 replies · active 361 weeks ago +1 Vote up Vote down NOBAMA · 361 weeks ago Well since it took 1 year and 6 months for GW Bush to get a UN Backing to go into IRAQ it’s no problem for some of us to figure out they were moved into Syria as was said all along by the BUSH ADMINISTRATION. So now we are left with securing them for yet another round. Just think they only figure we will need 75000 TROOPS/BOOTS ON THE GROUND to initially secure them. Stock up on more guns as WWIII starts tomorrow night. Report Reply 0 replies · active 361 weeks ago 0 Vote up Vote down GW Bush was right · 361 weeks ago… Now you know the real story. NO OBAMA must not be allowed to send missiles into Syria. Report Reply 0 replies · active 361 weeks ago 0 Vote up Vote down anonymous · 361 weeks ago If we let the maniacs run that asylum (the middle east), watch what happens at the gas pump when “security” in the suez canal and the rest of the region gets messy. This alone is reason enough to push the US Presence over there… the numbskulls will hose up the oil export enough to cripple us. And the democrats won’t let us drill anymore of our own, so here we go – Obama has no choice but do something. Its not all about checmical atrocities. But nobody respects or trust him (see great britain) so he can’t get any support here or abroad. Also, Saddam was not just “cleansing the ethnic kurds,” he was letting terrorists train in his country; he invaded kuwait and the civilized world doesn’t allow that stuff. Bush is a hero. And he didn’t care what the left thought about it. Report Reply 0 replies · active 361 weeks ago -1 Vote up Vote down Dallas Fan · 361 weeks ago Elway was traded because he refused to play in Baltimore. What a baby. Anyway Peyton Manning is all Denver has. He makes everyone around him great just like Brady did Wes Welker. Enjoy the ride until it gets cold. Peyton does not win in Cold playoff games. Google it if you are a non-believer. Also what is in the works behind him. Peyton is 37 and only has a couple years left on the gridirion. Then what???? Back to the normal Broncos. Report Reply 0 replies · active 361 weeks ago +3 Vote up Vote down Thirsty · 361 weeks ago If Obama goes against the will of 70% of the population I think it is safe to say he has his own agenda and that he should be impeached and possibly imprisoned. “Nobel Prize winner attacks country with no solid evidence” . Really smart Obama. Someone needsa snickers Report Reply 0 replies · active 361 weeks ago 0 Vote up Vote down Where’s the PORK · 361 weeks ago BREAKING NEWS!!!!!!!!!!!!!!!!!! OBAMA is going to air drop in 5 million pigs on Syria. Report Reply 1 reply · active 361 weeks ago 12Next » Post a new comment Enter text right here! Comment as a Guest, or login: Login to IntenseDebate Login to Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Submit Comment Subscribe to None Replies All new comments Comments by IntenseDebate Enter text right here! Reply as a Guest, or login: Login to IntenseDebate Login to Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Cancel Submit Comment Subscribe to None Replies All new comments 3. Crusader Football.What a victory for the Wellington Crusader football team at Goddard that all 10 of you saw Friday.It’s been a lean three years on the gridiron for our Dukes, and Friday’s win was most certainly a cause for celebration. It was huge for the psyche of a program that is working very, very hard to get better and return to its former glory.Wellington had a big night in Goddard.There were several things I liked. Wellington played better fundamentally than what I’ve seen in a long time. They are doing a much better job tackling, and didn’t give up a big play until late in the game. Obviously, anybody wearing red has to be excited about the Trevor Nance to Colin Reichenberger connection. The offensive line did a great job Friday night.Wellington still has plenty of issues. Our running game is suspect at the moment and we continue to fumble. I thought the kids wore out a lot faster than Goddard did Friday which may be a conditioning issue.Still, it was a great win. The boys of fall most certainly represented the community well Friday night. Let’s return the favor fans and show our support for them this Friday night in their season opener against Concordia. 4. Andrew Horn update.Andrew HornA couple of weeks ago I blogged about the new dilemma created with the new schedule and core standards implemented at Wellington High School as it related to WHS senior Andrew Horn (see story here).Last week, I e-mailed Lee (Horn) Trute, his mother, what Andrew ultimate decided to do.She wrote:“(WHS counselor) John Gifford got permission for Andrew to do independent study for Ag so he could keep his FFA title, but he would be taking the most difficult classes the high school has to offer every period both semesters. I completed an advanced standing masters program and my schedule was not that grueling! Luckily he sent it to me after I had talked to all of the coaches at Andrews prospect camp. They all said not to worry about it, that he would have no problems getting in anywhere and would get scholarship money, just maybe not as much. I told Gifford no thanks.” She also expressed disappointment none of the high school administrators or members of the school board got back with her after the blog ran.last_img read more