Aug 28th 2014 – Ukraine Tensions Overshadow Good Data Reports

Market View:

Well, there is that geopolitical noise again.  Given the data, today should have been a significant rally, but alas, Putin’s cat and mouse game with the west is deflating hopes of a quick end to the fighting there.  Let’s hope we have peace or at least positive talks soon.

At the end of the day the market has to do some selling before it goes back up again.  So I am somewhat pleased that we have had two weak days in a row now.  However, the Ukraine crisis is having a significant impact on the indexes, so it is impossible to say what will happen next (even more than it is usually!)

Market News:

U.S. stocks declined on Thursday, pulling the S&P 500 back below 2,000, as concerns about Ukraine overtook upbeat reports on the U.S. economy and the labour market.

Figures from the Commerce Department showed the economy expanded more than previously projected, with gross domestic product rising at a 4.2 percent annualized pace, versus an earlier estimate of 4 percent that follows contraction in the first quarter.

Another report from the Labour Department had the government’s count of Americans filing for jobless benefits dropping by 1,000 to 298,000 last week.

And, the National Association of Realtors reported more Americans signed contracts to buy existing homes in July, with its index of pending home sales up 3.3 percent.

But the better-than-expected data was overshadowed by reports of intensified fighting in Ukraine, with that nation’s president on Thursday saying Russian troops had entered the country and were fighting along alongside Russian-backed separatists.

Friday:

8:30 a.m.: Personal income/spending

9:45 a.m.: Chicago PMI

9:55 a.m.: Consumer sentiment

News Sources:  CNN Money & CNBC