My expectation for a flat market Monday and Tuesday has played out. Investors don’t want to make any decisions until they see what the Bank of Japan and the Fed do. There are rumors the BOJ will taper some of its asset purchases because of the 2 day holiday as it allows for markets to digest the news. This is a silly way to look at things because the market will still sell off if the BOJ lowers purchases. However, I don’t discount the BOJ’s ability to think illogically. When the Fed announcement is released, I expect an initial pop on the lack of an increase and then a sell off a few days later as investors recognize the negative effects of ZIRP policy.
The election continues to tighten as the no toss-ups real clear politics map has Hillary with 272 electoral votes and Donald Trump with 266. If Trump moves New Hampshire to his column, he will win, all else being equal.
Goldman Sachs’s Simona Jankowski raised her GoPro Inc (NASDAQ:GPRO) price target from $12.50 to $14 based on its announcements yesterday. Some of the reasons for the upgrade were the foreign voice control feature which strengthens international appeal, a good pricing cadence, and sales momentum from the Karma. She forecasts the Karma drone to earn $31 million in revenue in this year and $277 million in 2017 based on the estimate that the drone market is $2 billion.
Wells Fargo & Co (NYSE:WFC) CEO John Stumpf is taking questions from Congress today as a result of the controversy surrounding the opening of fake accounts. As expected the biggest critic of Wells Fargo is Senator Elizabeth Warren. She made the following statement “You should resign, you should give back the money and you should be criminally investigated … The only way Wall Street will change will be if executives face jail time.”