In last night’s presidential debate, President Joe Biden’s performance was described as shaky, causing panic among Democrats. On the other hand, former President Donald Trump reiterated multiple falsehoods while emphasizing his record of cutting taxes and increasing tariffs during his first term. Many economists express concerns that continuing such policies in a potential second Trump term could lead to inflation and further add to America’s growing debt. Despite these concerns, US stocks were up in pre-market trading on Friday and the Fear & Greed index on CNN remained neutral as investors seemed to overlook the contentious debate. Market analysts are closely watching the upcoming inflation data release, particularly the Personal Consumption Expenditures (PCE) price index due on Friday, which could provide insights into future inflation trends and potential actions by the Federal Reserve.
Under the past three US presidents, including Barack Obama, Trump, and Biden, the S&P 500 index has consistently delivered annual returns between 12% and 17%, demonstrating the resilience of the market even in times of political uncertainty. While the market typically experiences increased volatility towards the end of an election year, the presence of two incumbents running for office adds a unique element to this race. Investors are also keeping an eye on international markets, particularly in France, where political uncertainty is causing nervousness among investors. French President Emmanuel Macron has called for snap parliamentary elections after his party’s disappointing performance in European elections.
Closer to home, CDK Global continues to face a major software outage, affecting nearly 15,000 auto dealerships in North America. Dealerships rely on CDK’s software for various operations, from scheduling to record-keeping, and the ongoing outage has caused significant disruptions. While CDK has been working to restore its systems, car buyers and dealers are currently in a standstill waiting for a resolution. There is no specific timeline for when systems will be back online.
Additionally, Walgreens has announced plans to close a substantial number of its locations across the United States as part of a larger business reorganization effort. CEO Tim Wentworth stated that changes are imminent for a significant portion of underperforming stores as the current pharmacy model is deemed unsustainable in the current operating environment. Specific details on the number of closures were not provided, but the company is expected to implement significant changes in the upcoming period.
