Sept 3rd 2014 – S&P 500 Clings to 2,000 Again in Choppy Trade
Market View:
Tomorrow is all about the central banks. Most importantly, the ECB chief, Mario Draghi will be giving a press conference tomorrow after their monthly meeting. He has been very supportive of the markets in his statements before, so hopefully there will be no surprises there.
We may also get further clarification on the ceasefire talks between Russia and the Ukraine. The European markets finished much higher on this positive sign, but in the US it was diluted after Russia toned down the wording, stating again that they are not directly involved.
Market News:
U.S. stocks closed mixed on Wednesday, coming off morning highs amid economic reports and central bank news.
The European Central Bank is scheduled to hold its monthly policy meeting on Thursday and may announce the launch of a bond buying program.
On Wednesday, stocks held to earlier trends after July factory orders rose in-line with expectations, strong U.S. auto sales for August, and the release of the Fed’s Beige Book, which found modest to moderate economic expansion.
Earlier, stocks had opened positive on the possibility of a cease-fire between Ukraine and Russia.
Thursday will bring a slew of data, including weekly jobless claims and ISM non-manufacturing data, ahead of Friday’s job’s report.
U.S. stock index futures and European indexes traded higher early on Wednesday, on the possibility of a “cease-fire” between Russia and Ukraine.
However, the press office later toned down the statement after Russia denied the deal.
Pro-Russian separatists have been battling Kiev’s forces in the mainly Russian-speaking Donbass region, which is home to most of Ukraine’s heavy industry and accounts for about 18 percent of the country’s economic output.
Thursday:
8:15 a.m.: ADP employment for August
8:30 a.m.: Weekly jobless claims
8:30 a.m.: Trade deficit for July
8:30 a.m.: Productivity for the second quarter
10 a.m.: ISM non-manufacturing for August
News Sources: CNN Money & CNBC