(INDEXSP:.INX) ralliedon Friday in the face of mediocre bank
earnings as optimism about a debt ceiling resolution grew.
The US will hit a deadline to increase the debt ceilingnext
Thursday . However, Wall Street is increasingly viewing a
resolution as inevitable, with at least a short-term fix to keep
the government open on the way. The White House and House
Republicans are engaged in active talks and at day's end, the White
House announced that both sides have taken a default off the table.
The bullish movementon Friday put the market up about 3% above
Wednesday's intraday low, and within striking distance of all-time
Due to the shutdown, we did not receive September retail sales,
PPI, or business inventories reports that were due out today.
However, we did receive the October Michigan Sentiment Survey,
which registered at 75.2, just ahead of consensus. However, it was
down slightly from September's 77.5.
In stocks, shares of
) both fell after the companies reported mixed third-quarter
earnings. Both companies reported higher-than-expected profits, but
the gains were primarily the result of the release of loan loss
reserves rather than demand, and both companies missed on the
Nonetheless, there were still some standouts in the sector, namely
Homebuilders also stood outon Friday , with the
SPDR S&P Homebuilders ETF
(NYSEARCA:XHB) trading up 1.7% after an analyst upgrade of key
On the negative side, silver and gold had a rough day, each
selling off more than 2%. In fact, at one point early on in the
day, gold trading was halted on the CME. Crude oil also sold off
aggressively early, but recovered somewhat by day's end.
Monday's Financial Outlook
There are no economic reports or major earnings releases
scheduled forMonday , which is Columbus Day.
However, traders should be aware the market could very easily be
moved by the news out of Washington -- a theme that may play out
throughout the week as many of next week's important economic
reports, like the CPI, are on the shelf until the government