Despite a week filled with news from the Federal Reserve, economic data
and corporate earnings reports, none of this data appeared to be a
meaningful directional driver for stocks.
Earnings season is underway with overall results holding up fairly well.
With roughly half of all companies in the S&P 500 index having reported
third quarter earnings, average growth has been 7%,a respectable
Investors cheered the agreement to kick the can on short-term government
funding until Jan. 15 and to extend the debt ceiling until Feb. 7.
Stocks tumbled early in the week, rebounding strongly on Thursday, in
reaction to news of an imminent agreement to extend the federal debt
ceiling limit to late November.
Financial markets appear to be taking the government shutdown in stride,
without much alarm, but we see potential risks to the downside if a
budget/debt ceiling agreement is not reached soon.