3 O’Clock, By the Flagpole… Markets are waiting on bated breath for what’s essentially been billed as a final showdown between Pelosi and Mnuchin at 3pm EST that marks the last chance to get a stimulus bill passed ahead of the election only 2 weeks away. US stocks have been characteristically positive ahead of the showdown, and all 3 indices moved higher midday after Pelosi told BBG TV she is “optimistic” (never heard that one before). Apparently Fed heads aren’t convinced: Charles Evans admitted he is “nervous” fiscal stim won’t come but reassured that the Fed can do more if necessary, sending stocks to fresh intraday highs (though coming off a bit over the last 15 minutes). Plenty of single stock movers are helping to dictate sector moves, not all of them earnings related: in fact Autos are the best S&P performer as towed higher by General Motors (GM +8.3%) after announcing it will invest an additional $2bn into EV production. Banks are also higher powered by earnings beat from Comerica (+7.4%) and Regions Financial (+6.3%), helping solidify Value outperformance over Growth (VLUE +1.1, MTUM +0.6%). On the other side of that equation, IBM’s (IBM -5.9%) sales decline and lack of outlook have weighed on Software, and a less enthusiastic second look at Intel’s memory unit sale chipped away at Semi’s ytd gains. Defensives Food/Bev (Philip Morris vape shipments disappointed [PM -4.3%]) and Telecoms round out the laggards.
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