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Afternoon Note

Avoiding Government Shutdown

By Charles Payne, CEO & Principal Analyst
7/22/2019 1:32 PM

The market continues to mark time ahead all the major news this week.  Tech is rocking on that Goldman (GS) upgrade we wrote about this morning. 

Right now, earnings in general are coming in better than expected. There is even a chance there won’t be back to back yearly declines.

S&P 500 Index

+0.25%

 

Communication Services (XLC)

+0.11%

 

Consumer Discretionary (XLY)

 

-0.02%

Consumer Staples (XLP)

 

-0.39%

Energy (XLE)

 

-0.02%

Financials (XLF)

+0.07%

 

Health Care (XLV)

 

-0.04%

Industrials (XLI)

+0.20%

 

Materials (XLB)

 

-0.15%

Real Estate (XLRE)

+0.16%

 

Technology (XLK)

+1.17%

 

Utilities (XLU)

 

-0.35%

 
There is talk of a budget deal that avoids a government shutdown.  The amount of debt is crazy, but the politics of not getting the deal done are significant.  At some point, we will hit the point of painful return, but we are not there yet.  Maybe we are and don’t know it, but this is yet another issue for the Fed to deal with because servicing this debt could soon reach $1,000,000,0000,000 annual.

 


 

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