When we get positive economic reports we thus get less of a chance in additional quantitative easing commonly known as QE, or old fashion money printing. Today we got that first dose of reality in the markets seeing all averages fall right on the open of trading on the back of good economic data that has come out of recent. Tomorrow every investor needs to keep their eyes directly on what comes out of the Jackson Hole speech from FED Chairman Ben Bernanke. And if we get a rally leading into the speech it might be wise to again pair positions and take profits.
Today’s note comes late so the futures can be highlighted. Currently at 9:30 Pacific Time the indexes are showing green arrows. The Dow Futures are up 17 points, The Nasdaq Futures are up 3.25 points, and the S&P 500 Futures are up 1.3 points.
The ECB holds their next meeting September 6th and after tomorrow investors will be looking for what ECB President Mario Draghi has to say. This week Super Mario in an op-ed said “exceptional measures” are needed to stabilize the financial markets.
A reminder of the global slowdown came tonight as Japan and South Korea had slumps in manufacturing reports. Although the card up the sleeves of global central banks (and as some would say they are all just one big central bank, mainly the limo driver from last night) is China and possible stimulus out the People’s Republic. It is very hard to read what China will do… on just about anything, and often changes in policy come as a surprise.
In trading today the Dow (INDU) lost -106.77 points at -0.81%. The Nasdaq (COMP) fell -32.48 points at -1.05%. And the S&P 500 (SPX) dropped -11.01 points at -0.78%.
Oil fell 94 cents to close at $94.62 a barrel.
Gold lost $5.90 to close at $1,657.10 an ounce.
The 10-Year Note gained pushing the yield down to 1.61%