Stocks are edging higher after a bizarre session
yesterday which saw trading on the Nasdaq halted for more than 3 hours due to a
technical glitch. Trading resumed in the
late afternoon and all 3 major indexes held up despite the system failure. Although the Dow snapped its week long losing
streak yesterday, momentum appears to be to the downside with investors still
very cautious on the Fed’s plan to taper its bond purchases. With the
annual Jackson Hole conference under way, investors are looking for clues as to
how and when the Fed will exit its stimulus program. Competing views among the Fed of how to end
its easy money policies is cause for concern for the markets. Expect volatility to persist until September’s
FOMC meeting where a plan may be outlined.
In other news, Microsoft is leading US stocks, with the tech giant up 7%
on news that chief executive, Steve Ballmer, will retire within the next 12
months. Economic data is light today,
although a report on housing showed new US home sales dropped dramatically in
July to an annual rate of 394,000. The
surprise drop took stocks lower just after 7:00 am PST. International markets are higher keying off
yesterday’s Wall St. gains. It looks
like a back and forth day with markets swinging between small gains and losses.
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