November Taper-Trial Balloon Or Reality?

Equities are clawing back Friday’s losses despite weekend rumors that corporate and capital gains taxes may rise under a new Biden proposal. Further, the market appears to be brushing off concerns that a taper timeline aiming for November seems more like reality than a trial balloon. Comments from various Fed speakers early this week will shed more light on any potential change to policy. Crude oil is trading back over $70 a barrel as tropical storm Nicholas threatens already battered gulf coast oil/gas production facilities.

 

What To Watch Today

Economy

  • 2:00 p.m. ET: Monthly budget statement, August (-$175.0 billion expected, -$200.00 billion during prior month)

Earnings

Post-market

  • Oracle (ORCL) is expected to report adjusted earnings of 97 cents a share on revenue of $9.77 billion.

Politics

  • Congressional Democrats will formally unveil their tax plan as soon as today and a draft has already leaked. The proposal is estimated to raise $2.9 trillion in new taxes from wealthy Americans and corporations and will be discussed in committee hearings today.
  • President Biden is headed West today for a two-day trip that will take him to Idaho, California, and Colorado. He’ll be focused on wildfires with a stop at the National Interagency Fire Center as well as politics with a campaign stop for California Gov. Gavin Newsom ahead of the recall election tomorrow.
  • U.S. Secretary of State Antony Blinken will be in the hot seat with his first appearance before Congress since the United States’ withdrawal from Afghanistan. Blinken is expected to face some of the most aggressive questioning of his career during a hearing scheduled for 2:00 p.m. ET.

Courtesy of Yahoo

Dead Cat Bounce

Market set to bounce at the open this morning. As we noted in this past weekend’s newsletter:

That correction started on Monday with the week ending in 5-straight down days which is the worse slide since February.

However, while that sounds terrible, the total decline for the week was just -1.69%. Yes, that’s it, less than 2%. While CNBC probably ran their “Markets In Turmoil” segment, traders huddled over candles and incense chanting incantations at the Fed for more accommodation.

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