Stocks closed mostly higher on Friday, erasing sharp intraday losses by the close. Although, all of the major indexes were lower for the week.

The government shutdown, which clocked in at day 38 on Friday, entered a new phase of repercussions. A shortage of air traffic controllers, with many missing paychecks because of the shutdown, which prompted the FAA to order flight reductions, saw airlines cancel over 1,000 flights at 40 of the largest U.S. airports on Friday, snarling travel plans. The list of canceled flights grew larger over the weekend. The longer this goes on, the more flights will be canceled. And it couldn't come at a worse time given the upcoming holidays. Additionally, businesses that rely on travel and tourism will be affected.

It was also bringing on additional unwanted consequences, especially for those whose businesses rely on government contracts.

And then there's the issue of other personal benefits being delayed. Not only does it create personal hardships, it takes an economic toll as well.

Finally, over the weekend, Congress decided enough was enough and they crafted a plan to reopen the government.

On Sunday night, day 40 of the shutdown, the Senate reached a bipartisan plan to reopen the government. More votes are still needed. And it will eventually have to go back to the House for approval.

But if the advancements made on Sunday stick, the government shutdown could end this week, and maybe sooner rather than later.

Stocks responded favorably to the news in Sunday night futures trading.

In other news, earnings season continues to impress. By and large, it's shaping up to be another better-than-expected earnings season. And that's great news, since stocks typically go up during earnings season.

This week we'll get as many as 1,439 companies on deck to report.

While November is off to a shaky start, Q4 is considered the best quarter for stocks.

I'm also reminded of another stat ? since 1950, in post-election years (first year after a Presidential election), both November and December have a high probability of finishing up with a 72.2% likelihood and 77.8% likelihood, respectively.

And, of course, I will once again cite the stat I've been citing all year, which is: the last time we saw back-to-back gains of 20% or more in the S&P (1995 and 1996), it was followed by 3 more years of 20% gains. In '95 the market was up 34.1%. In '96 it was up 20.3%. In '97 it was up 31.0%. In '98 it was up 26.7%. And in '99 was up 19.5%. That was 5 long, glorious years of gains (a 220% increase), led by the internet and dot-com boom.

I see the same thing happening this time. In 2023, the S&P was up 24.2%. In 2024 it was up 23.3%. So far in 2025, the S&P is up 14.4% (on its way to another 20%+ gain?). And we can thank the modern-day tech boom, driven by AI, for that. The unprecedented spending and innovation is expected to last for years to come. And I'm expecting another 3 more years of 20% plus gains before all is said and done, if not more.

So make sure you're taking full advantage of it.

See you tomorrow,