Aug 8th 2014 – Stocks Jump on Russia Pullback Reports

Market View:

Good news on the obvious thing that was holding back the markets from jumping on good economic news and earnings reports for the week.  A reliable source showing that Russia is interested in de-escalating the Ukrainian crisis.  Let us hope that is the case.

If it is, it’s risk on time again and this market correction should find it’s feet and at least create a lower high is not shoot for a new all-time high soon.

Market News:

U.S. stocks jumped on Friday, with benchmark indexes turning higher for the week, on signals of reduced tensions in the Russian-Ukraine crisis and as Wall Street viewed American military moves in Iraq as limited.

Reuters, citing Russia’s Interfax, reported that Russia had ended military exercises near the Ukrainian border. The war games, which began Monday, were scheduled to end Friday, according to media reports including the Guardian.

The CBOE Volatility Index, a measure of investor uncertainty, fell 5.6 percent to 15.73.

Ahead of Friday’s open, stock-index futures had fallen on word President Barack Obama had authorized air strikes in Iraq, only to turn higher on reports that Russia might to be looking to de-escalate tension over Ukraine.

The Pentagon’s press secretary said via Twitter on Friday that U.S. military aircraft had struck rebel artillery that was being used against Kurdish forces defending a position near American personnel. American officials told NBC News on Friday afternoon that U.S. military warplanes had launched another round of airstrikes against an Islamic State target in Iraq.

Stock-index futures had risen on a news report signaling Russia might be looking to de-escalate the Ukraine conflict, offsetting declines that came with President Barack Obama’s decision to authorize airstrikes in Iraq.

Geopolitical concerns overtook economic reports, which on Friday included data from the Labor Department that had nonfarm productivity rebounding more than expected in the second quarter, with a drop in labor costs pointing to still-tame wage pressure.

Separately, the Commerce Department reported wholesale inventories rose less than expected in June.

Thursday evening, Obama told a press conference he had authorized the U.S. military to make targeted airstrikes to protect American personnel in Iraq. His remarks came as the U.S. began an effort to drop humanitarian aid to Iraqi civilians in the northwest of the country.

News Sources:  CNN Money & CNBC