Transcript:
Tom Vaughan:
Hello everybody, welcome to Tuesday. The S&P 500 was down .35%. This breaks an eight day winning record for the S&P 500, which really in my opinion is an okay situation. You normally don’t see 10, 15, 20 days in a row or the market just goes up. You need these pauses, you need the market to kind of settle down, maybe even come down a little bit to encourage some new buying to kind of get to the next level. I’m still quite positive about what might happen here in the fourth quarter, with all the things that are happening.
A couple of pieces that really did fall hard today that kind of brought down some pieces of market, one of course was Tesla. Elon Musk had mentioned that he might sell up to 10% of his stake in Tesla, it fell 5% yesterday and a little bit over 11% today. And it’s of course, now part of the S&P 500, so that can have some impact on the overall index. We also had PayPal today miss on some of their earnings, right here at the end of the earning season, and it dropped about 10%. Also, both good companies. Both going to do fine. Probably both, gonna settle in here for a while and see what happens. But I do expect the market to do quite well.
One other big piece of news today was that they interviewed somebody else for the Fed chairmanship. So the Fed chairmanship, which currently held by Chairman Powell, will either be, he’ll either be reinstated in February or replaced, and so they interviewed somebody who might be a replacement. There’s a woman who’s already on the Federal Reserve, last name Brainard. And the outlook on her process, while she’s been on the Federal Reserve, is that she might be one to keep the rates lower for longer. And so there’s a political aspect to that. If they keep rates lower through the midterm elections, that could help the Democrats, so there’s some thoughts that maybe they might do that. But the other side of it is that, you know, if you keep rates lower for too long, you can get an inflationary situation. So this is the scenario that the Federal Reserve, whoever is the chairman is going to be kind of walking down this tightrope, trying to figure out when to raise rates and deal with some of these different ramifications.
So, we did see the bonds yields drop today, again because of this news, so we’ll see what happens there. But all together really interesting day as usual. As we head our way through this, but I would keep my positive thought process in place here. But probably expecting some more downturn here as we see this settle in a little bit, and then hopefully, we’ll start to see some more movement, after things get to some kind of bottom.
So, I will not be here tomorrow. Going to be out of town, but I will be doing the update again on Thursday. I will see you then. Thank you very much.