Courtesy of John Nyaradi.

I predict more stock market declines on Monday, considering the current state of affairs in Congress

Stock markets will likely decline on Monday, due to the current political impasse in Congress.  Stock markets last week were a mixed bag, with the S&P 500 (NYSEARCA:SPY) losing .07%, the Dow Jones Industrial Average (NYSEARCA:DIA) losing 1.22%, and the NASDAQ 100 (NASDAQ:QQQ) gaining 1.22%.

Last week was a roller coaster for stock markets, as Congress whipsawed investors over the US Government shutdown and the debt ceiling debates.  With new lines now drawn in the sand, both sides appear to be completely unwilling to compromise on their positions to raise the debt ceiling, and we only have 11 days left before the United States begins running out of cash.  Since both sides will not likely concede tomorrow over how the debt ceiling will be raised (if it will be raised at all), I predict stock market declines as investors become more and more nervous.

We are also again at the beginning of a new earnings season, starting with the all important bellwether earnings report from Alcoa (NYSE:AA).  The aluminum provider is expected to have a negative report (according to JP Morgan (NYSE:JPM)), and I believe this quarter’s earnings reports will be a mixed bag as well.   Tomorrow we are also due for a new Consumer Credit Report, which will likely also be in the red due to sluggish retail markets.

Internationally, European stock markets died on a vine last week, and Asian markets are down at the time of this writing.  It appears that the closer we get to October 17th, the more jittery investors are becoming.

US futures markets are also deep in the red at the time of this writing, further emphasizing my prediction that stock markets will decline Monday.  Go ahead, blame Congress.

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