by Calculated Risk on 10/24/2013 09:21:00 PM

It is time to play "small ball"!

From the WSJ: Both Parties Seek Small Budget Deal

Republicans and Democrats will use budget talks that start next week to try to minimize or reorder broad spending cuts that began in March, with both sides Thursday playing down the possibility of a "grand bargain" that would address the nation's long-term fiscal problems.

In de-emphasizing the likelihood of a larger deal, both parties appeared to be looking for limited areas of agreement in order to bypass the next round of the automatic spending cuts known as the sequester and buy time to deal with tax reform, entitlement cuts and other big-ticket items next year.

I think "small ball" is the correct approach at this time. Hopefully the "grand bargain" talk will subside - it is Not Gonna Happen during the next few months. Besides no one wants another shutdown since that was expensive and just plain dumb.

Friday:
• At 8:30 AM ET, the Durable Goods Orders for September from the Census Bureau. The consensus is for a 2.5% increase in durable goods orders.

• At 9:55 AM, the Reuter's/University of Michigan's Consumer sentiment index (final for October). The consensus is for a reading of 74.8, down from the preliminary reading of 75.2, and down from the September reading of 77.5.