Hello MarketClub members everywhere. Stocks have given back earlier gains after the Federal Bureau of Investigation announced it is investigating new emails related to Democratic nominee Hillary Clinton. The market's reaction was swift dropping -.50% across the three main indexes.
In other news today, the U.S. economy grew at an annualized rate of 2.9 percent in the third quarter as reported by the Commerce Department. The 2.9 percent clip marked the fastest economic growth in two years. Economists had forecasted that the GDP would rise at a 2.5 percent annual rate in the third quarter.
Despite the moderation in consumer spending, the third-quarter rise in growth could help dispel any lingering fears the economy was at risk of stalling. Over the first half of the year, growth had averaged just 1.1 percent.
Key levels to watch this week:
S&P 500 (CME:SP500): 2,169.60
Dow (INDEX:DJI): 18,399.96
NASDAQ (NASDAQ:COMP): 5,340.52
Gold (NYMEX:GC.Z16.E): 1,284.50
Crude Oil (NYMEX:CL.Z16.E): 48.63
U.S. Dollar (NYBOT:DX.Z16.E): 96.48
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
Breaking news on Friday just before market close:
Belfast High Court rejects Brexit challenges.
This could have been what sparked the dollar tumble and rise in gold on Friday afternoon, not FBI story.
Two of the first legal challenges to Brexit have been rejected by a Belfast court.
A high court judge ruled that the Good Friday agreement in 1998 could not be used to grant Northern Ireland exemption from the UK’s decision to leave the European Union.
A victim of loyalist terrorism, Ulster politicians and community groups argued in court that because 56% of the Northern Ireland electorate voted to remain in the EU, the region’s devolved parliament should have the right to vote on staying in Europe.
But Mr Justice Paul Maguire dismissed this argument, pointing out that the Good Friday agreement was constitutionally relevant only “in the particular context of whether Northern Ireland should remain as part of the UK or unite with Ireland.”
Delivering his judgment in the high court on Friday morning, Mr Justice Maguire said the implications of Brexit for Northern Ireland were still unclear after the prime minister indicated she would start negotiations to leave the EU before March 2017.
Article 50 legal case 'is attempt to reverse Brexit', court said.
“While the wind of change may be about to blow, the precise direction in which it will blow cannot yet be determined, so there is a level of uncertainty, as evidenced by the discussion about how the Northern Ireland land border with Ireland was affected by withdrawal from the EU,” he said.
Maguire said it was not in the court’s power to overturn a political decision but the judgment in Belfast would not prejudice other challenges to Brexit in English courts.
“It is the court’s view the prerogative power is still operative and can be used for the purpose of the executive giving notification for the purpose of article 50. This, however, is said without prejudice to the issues which have been stayed and which are under consideration in the English courts,” the judge said. “In respect of all issues, the court dismissed the applications.”
Among those who took the legal challenge to Brexit was Raymond McCord, whose son was murdered by loyalist paramilitaries. He had argued that Brexit would endanger the peace process and undermine the Good Friday agreement.
After the judgment, McCord said he was disappointed, adding that he would take his case to the supreme court in London. ”We live in a democratic system,” he said. “56% of the people of this country voted to remain.”
A separate case to grant Northern Ireland the right to be exempt from Brexit was taken by a cross-party group of Stormont assembly members, including Sinn Fein’s former regional education minister John O’Dowd and the former justice minister David Ford.
A government spokesperson said: “We welcome the court’s judgment, which agrees with us that the government can proceed to trigger article 50 as planned.
“As we have always made clear, we stand by our commitments under the Belfast agreement and the outcome of the EU referendum doesn’t change this. We will now await the outcome of the parallel cases under consideration by the England and Wales high court before setting out our next steps.”
The Ulster Unionist party said the judgment in Belfast meant that “the days of Brexiteers and remainers are over”.
Stephen Aiken, an Ulster Unionist member of the Northern Ireland Assembly, said: “Whether people like it or not, the United Kingdom is leaving the European Union.
“What the people now need is a united front, battling for the best deal possible for Northern Ireland. We would appeal for everyone’s energy to now be dedicated to that cause.”