U.S. stocks have overcome most morning losses with the Dow and S&P 500 currently in positive territory despite uneasy global sentiment and a blank economic docket. Additionally, this week’s Federal Reserve symposium in Jackson Hole, WY may have traders exercising further caution. Treasuries have turned slightly higher in the face of an eclipsed economic calendar, while crude oil prices and the U.S. dollar are lower and gold is advancing. In M&A action, Sempra Energy acquired Energy Future Holdings, which includes an 80% ownership stake in Oncor Electric Delivery. Overseas, European shares traded mostly lower.
At 12:54 p.m. ET, the Dow Jones Industrial Average and the S&P 500 Index are increasing 0.1%, while the Nasdaq Composite is decreasing 0.1%. WTI crude oil is declining $0.89 at $47.77 per barrel and Brent crude oil is dipping $0.98 to $51.74 per barrel, while wholesale gasoline is down $0.03 at $1.59 per gallon. The Bloomberg gold spot price is increasing $7.19 to $1,291.31 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—is trading 0.4% lower to 93.10. Treasuries finished higher despite the economic calendar being void of any major releases today. The yields on the 2-year and 10-year notes and the 30-year bond increased 1 basis point (bp) to 1.30%, 2.18% and 2.76%, respectively.
Tomorrow, the docket will consist of the Richmond Fed Manufacturing Index, expected to have declined to 10 from 14, though a reading above zero denotes expansion in activity. The economic calendar will then heat up a bit on Wednesday with Markit’s August business activity reports, which will join with some housing data in the form of new home sales and the weekly MBA mortgage applications report.
Volatility could remain this week as Federal Reserve Chairwoman Janet Yellen and European Central Bank (ECB) President Mario Draghi are set to speak Friday at the Fed’s key symposium in Jackson Hole, Wyoming.
Schwab Center for Financial Research – Market Analysis Group
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