Windows Never Fully Dressed. Following yesterday’s lack of stimulus headlines, which put a negative spin on the day/quarter end, markets came back roaring today, thanks to an update in that regard. Markets are on track for the second consecutive quarter of dramatic gains, continuing an historic recovery that few predicted in the depths of March. The move aggressively higher is a tad surprising, given the depression cloud settling over America after last night’s repugnant clown show / debate. Apparently though, “the debate changed nothing, except to diminish the country’s dignity a little bit more (Ramesh Ponnuru).” Thus, investors have chosen to ignore the dull political hangover drumming on their brains and instead focus on the fact that Treas. Sec. Mnuchin suggested he’ll offer Dems a $1.5trillion proposal in aid. Further, economic data showed US companies added more jobs than expected in September. Still, the S&P is being led by Healthcare, as vaccine developers rally thanks to promising signals from Regeneron (though the stock has fallen today as Wall Street criticizes the results). Moderna was up almost 7% yesterday and Pfizer (+2%) and BioNTech (+3.1%) are following suit today after revealing more detailed early vaccine data. Natch, tech is not far behind. Nvidia (+2.5%), Amazon (+1.5%) and Apple(+2.2%) are performing with their usual charm, despite a disappointing show from Micron overnight (MU -6%) after halting shipments to Huawei. The whipsaw nature of the past 2 weeks has left investors heads spinning. Unfortunately, we still have August Personal Spending/Income, September ISM figures, and the NFP report still this week. Dumpster. Fire.
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