(As 0f 7:27 am pacific)
The market continues to range trade this morning,
swinging between slight gains and losses.
Investors continue to remain complacent ahead of Friday’s Fed meeting
shrugging off economic reports today that were positive. The Commerce department revised its growth estimate
for the second quarter reporting GDP climbed at a 1.7% annualized rate, up from
an initial estimate of 1.5%. Another
positive report out of the housing sector showed that pending home sales for
existing homes rose 2.4% in July, well ahead of the consensus estimate of a 1%
rise and the best reading since April 2010.
The housing market continues to show signs of recovery. European news was quiet today, with stocks
slightly lower as investors also await Friday’s Fed meeting. Hurricane Isaac made landfall late last night
in New Orleans registering as a category 1 hurricane. Pummeled by torrents of rain and wind gusts
up to 85 mph, New Orleans residents and officials are expecting some flooding
in parts of the city and surrounding areas, but damage is minimal compared to the
devastation brought by Hurricane Katrina exactly seven years ago. Oil rose yesterday on worries over the
unknowns of Isaac, but today concern over increased supply inventories are
causing oil prices to drop. Gold is down
slightly and the US dollar is up.
Interest rates bumped up slightly as treasury prices fell and volatility
is slightly higher. We expect similar
trading patterns until Friday, where Bernanke and the Fed will be on close
watch for signs of further stimulus.
