Confidence unexpectedly pulled back in october. Prospects for employment, income, and of course the economy. Perhaps they should be. Cities forcing to slow down reopening plans. Thee do see further dips in economic recovery, then this would not be good news for state and city budgets already left strained by the pandemic. Many states predicting billions of dollars of shortfalls in 2021. Some states are getting innovative in how to make ends meet, including putting Legal Marijuana sales on the pallet for tax revenue. Joe this has been one area that we have hoped well, some hoped there have would be further aid to state and local governments with a stimulus deal. It has not happened. Largest number of defaults since 2012. Expectations are, at least for that ithat continues. Romaine anything that can be done to sort of bump that backup. A time that they are trying to get out from under. Joe lets bring in Bloomberg Intelligence senior municipal strategist. Lets start with the big picture.
Split. Well tell you why invesetors ae piling in today. Energy companies have shut in production we have the latest on the impact of tropical storms marco and laura. Power lunch starts right now thank you, tyler as you mentioned its shaping up to be another record breaking week on wall street. That means even more evidence mounting that stocks are getting pretty expensive bob is following the markets for us bob. Yes it is. Right now we have very light summer volume. We have fairly narrow trading range today. I like what i see and i like what i see for one particular reason for once its not all about Technology Stock it started out that way at the open but it quickly changed and investers decided maybe the tech stocks are too pricey afterall today were seeing Energy Stocks bank stocks out performing, even industrials out performing the Technology Sec tore. Thats a big change of pace for the last couple of weeks i want to show you something to give you an example of how it changed. Apple
Basically, what weve got today is a reversal of what weve had over the last few sessions. He bond proxies are back health care is doing well today. We are seeing a selloff in the banks and a selloff in the auto sector, down by 1. 4 . Maybe the president didnt quite go as far as everybody was into spitting yesterday in pushing back the idea that european auto tariffs are a risk. We also see some weakness in the spanish market once again. The market not liking what is happening with spanish politics at the moment, and the coalition that is being put together. Again, it is the banks under pressure. The ibex down by 1. 5 . Vonnie fed chair Jerome Powell will deliver remarks on capitol hill in about an hour before the congressional joint Economic Committee. Powell saying in compared testimony that Central Bank Policy is appropriate as long as the economy stays on track. Joining us now for a bit of a dissection of where the fed stands, even as public impeachment inquiries get underway in was
What are we doing . Interesting but smart leading the feds beige book. Leading with beige. Check in on regional economies is telling two very different stories. How we are adjusting to the trade war. On one hand the beige book highlighting a retail chain that raised prices on furniture but is considering reversing the price hike because consumers arent buying it meantime, in cleveland manufacturers are feeling the pain by cutting overtime pay rather than laying off workers things looking up in philadelphia and new york. This is like a choose your own adventure book choose your own beige book. Are you allowed to do that . Is the economy headed down the path of new york and cleveland or are we Holding Strong like philadelphia and minneapolis . Gia dam uy adami. Ill be optimistic. Things look okay, not great. Thats reasonable. I think that along with the news out of hong kong where things have been tapered down for a couple of days, thats encouraging. The market is up 3 4 of a percent, 8
Increasingly popular alcohol breaks like Dry January are buoying the emerging US cannabis market as more drinkers especially younger ones see marijuana as a healthier alternative. Emboldened by widening legalization in the United States, cannabis sellers now actively market to January abstainers with new products and targeted advertisement, while research shows about…