After a low volume, choppy record-setting day, all eyes are on the Durable goods figures just around the corner. Consensus suggests a decline to a -0.2 reading according to the Econoday analysts. With consumer confidence dropping to 2011 low and the unemployment bonuses expiring on September 6thth investors hope the numbers can support the current prices. What happens is anyone’s guess, and then we will quickly turn our attention to Jackson Hole and thoughts of tapering. Be prepared as price volatility is likely.
Asian markets closed the day mixed in a choppy session as Chines tech stocks retrace recent gains. This morning, European markets trade with modest gains and losses, waiting on data and gearing up for the Fed summit. However, the bulls continue to push higher, sporting modest gains ahead of the retail sales numbers across the board. One must wonder if the market will ignore the data as it has done lately with negative economic news.
Economic Calendar
Earnings Calendar
On the hump day earnings calendar, we have 33 companies listed but several small-cap unconfirmed reports. Notable reports include CRM, ADSK, ATHM, BOX, DKS, EXPR, GES, NTAP, PLAB, PSTG, SCVL, SNOW, SPLK, ULTA, & WSM.
News & Techincals’
The U.S. House voted to approve a $3.5 trillion budget resolution to forward sweeping social programs without a single Republican vote. Leaders have pledged to a vote on the deficit spending plan by September 27th. Vice President Harris called out China’s bullying tactics while visiting Vietnam and donating a million vaccine doses. According to reports, the U.S. is also opening a review of U.S – China trade policies. Treasury yields moved higher this morning, with the 10-year lifting to 1.29% and the 30-year rising to 1.91%.
Another day of record in the SPY and QQQ in a choppy below-average volume session as we wait on the Durable Goods figures that will release an hour before the market open. The market is also gearing up for the Jackson Hole symposium that kicks off on Thursday. Jerome Powell will speak at 10 AM Eastern time on Friday, where investors will be listening and hoping to gain some insight into the central bank’s plans on tapering the $120 billion a month program. The bulls remain in control on the technical front, with the DIA and IWM still lagging behind the big tech-driven rally in the SPY and QQQ. Now the question is, what will the retail numbers say? Will it continue to support this short-term extension, or will we see a re-emergence of the bears? The big miss on consumer confidence has traders and investors on the edge of their seats as they wait for the data. Another question to be answered is if the number does miss, will it matter? Lately, the market has had an incredible ability to ignore bad economic news. We will soon find out.
Trade Wisely,
Doug
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