NEW YORK ( TheStreet) -- Uncertainty in Washington and end-of-the-quarter adjustments appear to be what is sending the markets lower.
Peter Cardillo, chief market economist for Rockwell Global Capital, told TheStreet's Debra Borchardt a government shutdown is highly unlikely, perhaps a 5% chance. However, there is a lot of drama and unnecessary publicity associated with the budget issue, which may be having an effect.
However, while this is one issue pressuring markets, Cardillo thinks the lower market is due to early selling by traders into the end of the quarter. Today's decent economic numbers weren't too disappointing, so it's unlikely that would be the contributing factor to today's selloff.
He said the University of Michigan consumer confidence results were optimistic, personal income came in slightly lower than expected, and the consumer spending data was positive. Ongoing expectations held up well and the third quarter could post GDP near 2.7% or 2.8%.Cardillo concluded that the government won't shut down, pointing out that bond yields continue to be weak. If a shutdown was definite, rates would be through the roof, he said. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell