[video] Quick Take: Traders Closing Out the Quarter
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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV