The deadliest mass shooting in U.S. history unfolded in Las Vegas overnight, with officials claiming at least 50 people have been killed and more than 200 have been injured at the hands of a single shooter. That tragic news, however, has not deterred this bull market.
The S&P futures are up three points, the Nasdaq 100 futures are up 8 points, and the Dow Jones Industrial Average futures are up 41 points.
Why? That is the question, isn't it?
There is no sufficient answer for the victims of a maniacal act. For the stock market, though, the explanation is straightforward.
It has not reacted negatively, because it is under the impression that this is an isolated incident without any official terrorist group linkages. Accordingly, it sees no lasting economic impact from the incident that would derail corporate earnings prospects.
We hate writing that, yet it is the essence of how the market evaluates matters at a time like this.
For added measure, there hasn't been a flight to safety in the Treasury market either. The 10-yr note is unchanged and its yield sits at 2.33%.
The reflation theme continues to have a hold on the stock market and it has been helped along today by some relatively pleasing manufacturing PMI readings for September out of China, Japan, and the eurozone, as well as inflows of new money that are often seen on the first trading day of a new month.
The ISM Manufacturing Index for September (Briefing.com consensus 57.8; prior 58.8) will be released at 10:00 a.m. ET along with the Construction Spending report for August (Briefing.com consensus 0.2%; prior -0.6%).
That ISM number could be a market mover since it will contribute to the market's thinking about the Federal Reserve's rate-hike path.
Increasingly, the market has come around to the idea that the Federal Reserve is likely to raise rates next at its December FOMC meeting. That is reflected in the fed funds futures market, which sees a 72.8% probability of a rate hike at that meeting versus 43.7% a month ago.
Today's corporate news hasn't elicited any market-moving excitement.
Some of the standout headlines, though, include a news report suggesting Nordstrom's (JWN) talks about going private are at risk of falling apart, an announcement from the Treasury Department that the systemically important financial institution (SIFI) label has been removed from American International Group (AIG), and a Morgan Stanley downgrade of railroads CSX Corp. (CSX) and Union Pacific (UNP).
Elsewhere, Spain is in the throes of a political maelstrom following a violent, contentious, and unrecognized referendum vote for independence by Catalonia. News report suggest 90% of voters in a low turnout voted for independence.
The uncertainty of the situation has weighed on the euro and Spain's IBEX Index (-1.6%), yet there hasn't been any spillover to other equity markets, which remain inclined to view it as a mostly Spanish situation.