New York (CNN Business)1. Divided government: American drivers hate gridlock, but investors seem to love it, at least when it’s slowing down the wheels of Congress.
Investors, always the cynical bunch, figure Washington won’t be able to mess things up with disruptive legislation (like a minimum wage hike) or by repealing laws that the markets like (see: massive corporate tax cuts).
Veteran traders even have a mantra for this thinking: gridlock is good. History generally backs it up. The stock market has performed just fine under a divided government. Recall that much of the bull market took place under President Barack Obama and a Republican-led Congress.
But Sam Stovall, chief investment strategist at CFRA Research, cautions that the S&P 500 has only gained an average of 3.5% in the 12 months after a midterm election that resulted in a split Congress with a Republican president. And more than a third of the time the market lost ground.
“Even though gridlock may be good, it ain’t great, and investors would be wise to temper their enthusiasm for the year ahead,” Stovall wrote in a report.
Similar fights could erupt next year, except this time with the added element of President Donald Trump’s unpredictability.
“Look for more late-night standoffs around spending plans, government shuts downs and threats to default,” Christopher Smart, head of macroeconomic and geopolitical research at investment firm Barings, wrote to clients last week.
The government could face a shutdown on December 7, 2018, though that deadline may get pushed to 2019 when the new Congress is seated. The debt limit will go back into effect on March 1 and Goldman Sachs expects Congress will need to raise it by August to avoid a default.
“What better way for one party to extract concessions from the other than to put the full faith and credit of the United States at risk,” Smart wrote.
The refrain on Wall Street will have to change at that point to something commuters can relate to: extreme gridlock stinks.
2. Retail earnings: Ahead of the make-or-break holiday shopping season, retail earnings reports next week include L Brands, Gap, Macy’s, Nordstrom and Walmart.
Despite the retail doldrums, Nordstrom is having a blockbuster year. The stock is up 37% for the year because investors are thrilled with the posh chain’s strong digital sales. The Seattle-based company is also seeing an uptick in sales to its nearly 400 stores. Nordstrom was once mulling a decision to go private and held on-and-off talks with the Nordstrom family, but discussions ended in March with no deal.
Macy’s is also having a strong year: Its stock is up more than 40%. Although people are still shopping at the 160-year-old brand, investors are worried that momentum might be slowing.
3. Tech results: Nvidia, Cisco and Eventbrite report next week — all three companies that are weathering a rough market for tech companies.
In particular, chip maker Nvidia is experiencing slowing growth. The company dropped 27% in October. It wasn’t dinged by any particular bad news, but followed a broad sell-off of among chip makers. Rival AMD warned last month of slowing demand for its graphics processors and said revenue will continue to be below expectations.
4. The blues: Once-hot meal delivery kit company Blue Apron reports what’s likely to be more disappointing earnings. The stock has lost 85% of its value since it went public in June 2017.
The company has tried turning its business model around by reducing head count, forming partnerships with celebrities and having its kits delivered via Walmart-owned Jet. Its stock has collapsed 70% year-to-date as it faces an onslaught of competition from Amazon, HelloFresh and grocery chains.
5. Coming this week:
Monday — Eventbrite (EB) earnings; Markets open for Veterans Day
Tuesday — Aramark (ARMK), L Brands (LB), Childrens Place (PLCE), Home Depot (HD) and Tyson Foods (TSN) earnings
Wednesday — Blue Apron (APRN), Progressive (PGR), Cisco Systems (CSCO), Gap (GPS), and Macy’s (M) earnings; Inflation numbers for October
Thursday — Nvidia (NVDA), Nordstrom (JWN), Walmart (WMT), and Manchester United (MANU) earnings; October retail sales
Easy Video Templates: Cartoon KitEasy Video Templates Cartoon Kit is a template pack and customization kit for Easy Video Lab (sold separately and formerly known as Kinetic Text Animator) or Easy Video Lab Lite (included for free). The Cartoon Kit comes with 25 highly and easily customiz
EverLesson SP Agency versionEverLesson is a Complete online system for managing your entire membership site. It produces the most beautiful, highly profitable membership sites in a matter of minutes. These memberships will keep the members engaged and hungry for more of your product
Moto Theme Pro ( OTO1 )Moto Theme Pro is packed with 150 More WordPress theme layouts from online and offline niche. Plus WP Lead Pages Plugin to build your email list and 100 Html Templates , Graphics Bundle
One Time Hosting Triple Up Diamond 36Upgrade your One Time Hosting Diamond 10 Plan to Diamond 36 Plan includes hosting for 36 websites with 30 GB storage. (Note: this is an upgrade to the One Time Hosting Diamond 12 Plan - this is not a standalone product)
Memester Elite MonthlyMemester can create both videos and GIF memes with eye-catching titles including clickbait styles on video. Integrate custom graphics and overlays over live videos for call to actions.Search YouTube videos by keywords and Memester will convert them directl
Stuna Traffic Bot PRO v3.0Stuna Traffic Bot Pro V3.0 Uses REAL Browsers Search Your Site In Google. Click On Site and Increase Your CTR!. Increase Page Views?. Increase Pages Per Visitor. Increase Time On Site. Lower Bounce Rate. FREE Stuna Proxy Finder And Checker PRO v2.0. Inside.
Passion Blog ProOver 8 Hours of Over the shoulders, behind the scenes look at how a Real Entrepreneur Shows Everything About Affiliate Marketing and Blog Building Strategies To Generate A Recurring Income Online. Demetris Shares his exact blueprint and methods using min
LeadFunnelCloud ResellerGet this Cloud Based App That Creates INSTANT Done-For-You UNLIMITED Profitable Lead Funnels To Build A HUGE List,Drive Targeted Social Traffic and Affiliate Commissions In Just 60 Seconds
Everlesson SP ProEverlesson is a Complete online system for managing your entire membership site. It produce the most beautiful, highly profitable membership sites in a matter of minutes. These memberships will keep your members engaged and hungry for more of your product
Instazon Traffic Combo (3App Bundle)This is a robust combination of pro versions of three of our most successful social media marketing products, Viral Reach, Credi Response and Site Contact.Viral Reach is a powerful Facebook marketing automation software that keeps your Facebook pages s
QuickAffiliatePro EliteGet this Brand New Software That INSTANTLY Creates 1-Click SEO-Optimized and Traffic Pulling Affiliate Sites Stacked With Fresh, Unique Content and HOT Videos To Boost Sales and Affiliate Commissions 24*7 on Complete Autopilot.
TigerPress Volume 1 Second ChancePremium one of a kind wordpress themes that do all the onpage seo for you including image seo, with TigerPress themes you can also generate an unlimited amount of geo targeted landing pages in any language.
xMails OTO6 : SellinMessenger Reseller Pro (500 Licenses)Make $5000 to $10,000 this week with ShotMessenger with Official Reseller rightsAllowing you to make unlimited xMails Accounts for your Clients,
and charge them monthly, yearly just like aweber, getresponse, mailchimp
or a one-time high fee for the mo
Your Own TV Channel on Roku - Inspire.Vision iTV Self-HostedInspire.Vision iTV is the revolutionary platform that allows you to launch and manage your own TV channel on Roku, the leading on-demand TV provider, without the technical hassles or the production crew, and at the price of less than a cup of coffee a day
VideoWrappr FullCreate quick and powerful videos for your social media posts or ad campaigns with dynamic banners, backgrounds and animated gifs. Then export and watch your message go viral. Easy drag 'n' drop, one-click system with Graphics Bundle, Agency Licenc
VidCuratorFX 2.0 - AceVidCuratorFX 2.0 - Ace is web based automatic video curation, creation and sharing tool. With ace you get access to tons new features, similar to Advnace.
Stockocity 2 Premium DUnlimited access to Stockocity 2 Premium including 18,000 FHD footage videos and 250 new FHD videos per month for 24 months. (note this is an upgrade to Stockocity 2 - you cannot purchase this product unless you have purchased Stockocity 2)
Energetic Power Rock Premium EasyTrackEnergetic Power Rock is a high-energy, guitar-driven EasyTrack with a hard rock style that expresses and creates a powerful, high octane, hard-hitting, and inspirational mood. This EasyTrack can be used with Easy Audio Lab (included at no additional cost)
TweetPush Elite MonthlyTweetpush lets you reply, retweet and engage with all your twitter account followers from one interface on automation. Tweetpush can get you marketing intelligence data and find you qualified leads by monitoring specialized keywords, hashtags for new twee
Flicktive GOLD PROEye-catching and captivating Flicktives with CALL-TO-ACTION that convince, command and convert visitors into paying customers!