Friends
The market is doing what the market is known to do in these situations. It’s shouting to Washington D.C. loud and clear. Get something done about the government shutdown and threatened default. Frankly, I am a little surprised it took the market this long to make its feelings known. As of this point, we are looking at about a 5% pullback from the September highs in the market averages. With the rise we have seen in share prices this year, that’s not a big deal, yet. Typically, the louder the market screams, the quicker the politicians react. Stay tuned.
By the close, the Dow Jones Industrial Average was down 159 points to finish the day at 14,776. The S&P 500 was down 20 points to close at 1655. Gold was down $5 to trade at $1320 per ounce, while oil was up $.47 to trade at $103.50 per barrel WTI. The bulls, if there are any around at the moment, were unable to defend 1670 on the S&P. It remains to be seen how much technical damage this political theatre will cause.
For the time being, we’ll focus on the earnings season that kicks off today, but of course we’ll keep an eye on the political situation. We’ll let you know how it plays out day by day. We’re just putting the finishing touches on our quarterly update. It will be available this week.
Have a nice evening everyone.
