Navigating a Policy Driven Market (All Blue Waves Aren’t the Same)
What’s in Today’s Report:
- Navigating a Policy Driven Market (All Blue Waves Aren’t the Same)
Futures are modestly higher after a much more typical Presidential debate and following mixed, but generally solid, global flash October PMIs.
October flash PMIs were mixed, as the European PMI was in-line while the Japanese PMI beat estimates and the British reading slightly missed. But, none of the data was bad enough to cause an increase in worry about the global recovery.
Politically, the final Presidential debate was more retrained and substantive than the first, but analysts don’t see it materially altering the race.
Today we get one important economic report, the October flash Composite PMI (:E 54.2) and it needs to show a solid reading (so close to in-line) to reaffirm the economic recovery is just plateauing and not regressing.
And, of course, we will watch the daily stimulus headlines. We left off Thursday with Pelosi sounding optimistic on a deal. Again, while the back and forth on stimulus might move markets in the very short term, stocks don’t need stimulus before the Election – they just need to know it’s coming before year-end (which is almost certainly is).