The Congressional Budget Office estimates the economic impact to be ~$5 billion, while S&P pegs the number closer to $10 billion; however, given the U.S. economy is ~$20 trillion, the overall economic impact of the recent shutdown is expected to take ~0.1-0.2% off annualized gross domestic product. So while the longest government shutdown on record has meaningfully impacted furloughed government workers and their families, the overall impact to the economy borders on negligible. (LPL)
Bank of America CEO Brian Moynihan says consumer spending and business optimism are strong despite the shutdown and disruption in the global economy. He said, “based on experts and consumer activity, it looks like a solid year for the US, though less growth than last year.” (Reuters)
Microsoft reported a quarterly profit of $1.10 per share. Revenue did fall slightly short of forecasts. (CNBC)
In their quest to capture the coveted millennial consumer and their quirky tastes, Coca-Cola is introducing some new flavors. The newest Diet Coke flavors will be strawberry guava and blueberry acai. They join four flavors added last January which were ginger lime feisty cherry, zesty blood orange and twisted mango.
S&P 500 is up 5 and the NASDAQ is up 55.
Oil is down 3 cents at $54.26 a barrel.
Gold is up $13 at $1329 a Troy ounce.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.