Markets Take A Break As Fed Looms
The Fed meeting begins Tuesday and the decision announcement is scheduled for Wednesday at 2 PM. Given the size of last week’s rally and the impending Fed meeting result it shouldn’t surprise markets settled mostly unchanged in light trading.
Economic data continues to be lackluster as the Dallas Fed Mfg Survey fell to -12.7 vs -6 expected & prior -9.5. Much of the declines here can be attributed to energy weakness. Separately New Home Sales shocked lower to 486K vs 549K expected & prior reduced much lower to only 529K vs 552K or a total drop of 66K.
Tuesday brings heavy economic data including Durable Goods Orders, PMI Services FLASH and Consumer Confidence among others. And, Tuesday also brings earnings results for much watched Apple (AAPL) shares. The market there seemed nervous about this report with the stock dropping 3.29%.
Market sectors moving higher included: Consumer Discretionary (XLY) and Bonds (TLT) with little else to mention.
Market sectors moving lower included: Regional Banks (KRE), Major Banks (KBE), Homebuilders (ITB), Materials (XLB), Energy (XLE), Small Caps (IWM), Emerging Markets (EEM), Hedged Europe (HEDJ), UK (EWU), Italy (EWI), France (EWQ), China (FXI), Shanghai (ASHR), Brazil (EWZ), Russia (RSX), India (EPI), India Small Caps (SCIF), Asia ex- Japan (AAXJ), Crude Oil (USO), Natural Gas (UNG), Canada (EWC), South Africa (EZA) and many more.
The top ETF daily market movers by percentage change in volume whether rising or falling is available daily.
Volume was quite light and breadth per the WSJ was negative overall.
I’ve not much to add as the tape is doing all the talking and should be respected despite any negative opinions anyone, including me, might have.
Let’s see what happens.
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market ...
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The Fed already made it abundantly clear they aren't raising rates this time and maybe not ever this year. Should we be happy, no. If they wait for the economy to go into a cyclical downturn at zirp rates it puts our economic fates at grave danger and they know it. However, joy and happiness abound in the market where reality plays little to no part. The worse the economy gets the more the central bank and government take actions which is much easier to figure out than studying economic signals. Whether or not people want to admit it, but our financial market is already operating a lot like a socialist programmed economy.