Three Things to Know and Watch
- House speaker Nancy Pelosi indicated that Tuesday (10/20) is the deadline (she said on Sunday ‘the next 48 hours’) for reaching a deal on a coronavirus relief package prior to the presidential election on November 3rd.
- Housing starts for September will be released Tuesday morning (10/21)and are expected to be up 3.1% month-over-month. Housing has rebounded strongly from the spring lows and has been one of the economic bright spots in 2020.
- On Wednesday (10/21) the Federal Reserve will release the Summary Commentary on Current Economic Conditions, more commonly known as the Beige Book.
In the Balance
- This week (October 19th) is the anniversary of Black Monday. On October 19th, a987, The Dow fell 22%, which is still the worst ever single day in its history.
The Beige Book is a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve Districts. It characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from District sources. It is published eight times per year; two weeks prior to the FOMC meetings. The official title is the Summary Commentary on Current Economic Conditions, but it is called the Beige Book because of the color of its cover. (Source: The Federal Reserve Board).
The VIX index has remained above 20 for 158 trading days, which is the longest streak since the Global Financial Crisis. The VIX Index is a financial benchmark designed to be an up-to-the-minute market estimate of the expected volatility of the S&P 500 Index and is calculated based on S&P 500 option prices. (Source: The Long View, Bloomberg).