(As of 7:14 am PST)
Stocks wobbled at the start but have picked up momentum
as investors analyze economic data reports in lieu of next week’s Fed
meeting. The Commerce Dept. reported US
retail sales climbed just 0.2% in August, the smallest increase since April and
well below consensus estimates. On a
positive note, retail sales for June and July were revised upward. US wholesale prices rose in August as
gasoline and food costs moved higher.
Core wholesale prices (which removes the volatile food and energy
categories) was unchanged indicating low inflationary pressure. Lastly, the University of Michigan consumer
sentiment report showed the preliminary reading for September falling
unexpectedly to 76.8, below initial estimates.
With a military strike on Syria avoided, investors have turned back to
the issue of bond tapering and how and when the Fed will execute its strategy
to wean the economy off its' stimulus programs that have been in place since the
financial crisis. Next week’s FOMC
meeting will be under the microscope with markets looking for direction for the
final quarter of the year. International
markets are mostly lower today as are commodities. Interest rates ticked down and the US dollar
is slightly higher. The first two weeks of September have been
surprisingly strong for equities, but expect volatility to return in the second
half of the month as the taper gets underway.
No comments:
Post a Comment