Govt. shutdown standoff into the holidays could pressure equities: Morgan Stanley's Monica Guerra

Government Shutdown Impact - Morgan Stanley Wealth Management's clients are asking about the impact of the government shutdown almost every day [2] - SNAP benefit expiration could drag on personal income by 04% [3] - Government shutdowns historically haven't mattered for the market, but the length of the current shutdown is a concern [4][5] - If the shutdown extends into the holidays, people are going to get nervous [5] - A prolonged shutdown could impact the Virginia gubernatorial election due to the state's large number of government employees [9] - Air traffic controller concerns and potential airport shutdowns could force a resolution [15][16] Political and Economic Factors - New Jersey election is the closest to a true referendum on current political debate [8] - Healthcare, specifically ACA subsidies, is a key point of contention in negotiations, with Democrats wanting a permanent extension and Republicans preferring a temporary or lower-level extension [11] - The difference in ACA subsidy proposals is between $340 billion and $15 trillion [11] - A deal on ACA subsidies could provide a tailwind for healthcare stocks, particularly insurance companies on private exchanges [12][13]