(As of 7:17 am PST)
A bit of a relief rally has come in to the markets today
as lawmakers showed signs of moving closer to a deal that would avoid a US
default. Stocks jumped at the open after
slight gains yesterday as investor optimism grew. For the first time since the government
shutdown began 10 days ago, President Obama is scheduled to sit down with House
Republicans today at the White House to discuss proposals on a budget
solution. Also swirling around Capitol Hill
are rumors that House Republicans have come up with a short term fix of raising
the debt ceiling for 6 weeks, allowing more time for budget negotiations. A report on jobless claims showed claims
surging last week from 308,000 to 366,000 partially due to the shutdown but
mostly impaired by computer miscues in California. Either way, markets seem to be sidestepping
the report and cheering the progress in Washington. So far earnings have been fair with only a
few companies reporting so far. If an
agreement is struck in the coming days and earnings are decent as we hit the
meat of the calendar, expect markets to rally from these current prices. Still a long way to go, but today is providing
a glimmer of hope (at least from the markets point of view).
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