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14 days to the election. It is a tuesday october. Obviously. Lettingpreme Court Pennsylvania go after that election to count ballots. Weve got lots of politics to talk about, and extort an area markets after the drop yesterday that we saw. How much do you think link yesterdays 700 point down drop to stimulus . Jonathan not me, but i think other people might make that link. I think if you want to make that inconsistency an because treasury yields climbed. If you think all of this stimulus was going to drive yields higher, then stimulus talks pulling apart would mean lower yields, higher yields. I think the temptation is to take every single piece of price action and draw a line back down to d. C. From wall street. Israelcretary mnuchin in for the important siding of the united arab emirates, israel, and United States of america. He will have a call with pelosi. Pelosi is go ....
Those are leading the gains today and recovering at the peak now 35 or so40 , from those record highs. David now we have an announcement that the fed is including their money Market Facility to include muni debt. Taylor this is interesting. There was a lot of talk on there. The muni market in general is much more illiquid than the rest of the market. Not surprising to see that in a week like we just had, with stress showing up even more and more. Muni traders continue to say there are some shortterm issues , but theres a lot of issues going on on the long end. I believe in previous laws, the fed could buy these up to six months. This expands it to longer dated maturities. We are getting a lot of that illiquidity on the tens and on that yield curve. Also, they had record outflows, according to as of yesterday. I would imagine this gives a little bit of some confidence to some money market facilities to also include muni debt. Davi ....
Up at a pro forma session and talk about this . What are we expecting . Will he give her ground . Anna probably not. The Senate Opening for a pro forma session. The majority leader will be here. We expect him to speak on the floor. He will probably criticize democrats, especially noting House Democrats have said they had to push this impeachment process through last year because President Trump is such a threat to the 2020 election that he was continuously interfering in what is going to be the next president ial election. They had to do this quickly. Now that they are delaying these articles, it goes against the point they were trying to make. David over the break we had a second senator showing they did not like how this was handled. We had Susan Collins joining ....
With losses on the s p, not to the russell 2000. In the last halfhour come a little bit of a recovery in the major indexes. The story overall is one what we are still looking for direction. Romaine a lot of the small caps are starting to catch up. Scarlet lets dive deeper into the market action. Abigail i have got volatility on my mind. The skew index that we have been looking at recently up a fourth day in a row. Surge going all the way back to january. Here is why it matters. In white is the skew index. In blue, the s p 500. In yellow, the vix. , near alltime highs, at alltime highs last that investors concerned it was a corrective nature. Thevix had caught up to skew index. Point the s p 500 near alltime highs. The skew index going sharply higher. Over time, this may be something to think about, some sort of corrective action. Probably at some point later in 2020. There was a time lag when this appened last time. Luke talk about why the skew has been a little high. Equities are real ....