Holy rollercoaster…a spike up followed by a spike down, then a spike up, before rolling over later in the day. We haven’t seen this type of extended month long volatility for quite some time.
The economic reports today were all under expectations, so I am not sure where the jump came in the futures overnight as well as the fast recovery from the first dip today.
However, the big reports are the ISM manufacturing report tomorrow at 10am and the Jobs report on Friday. If both are stronger than expected we should see a rally. If either or both are weak, it may still rally as the Fed is still holding up the market in my opinion. With interest rate increases some way out in the distance. In my estimation, we move higher from here.
U.S. stocks fell on Tuesday, with equities posting September losses and quarterly gains, as portfolio managers engaged in end-of-quarter positioning.
Tuesday’s economic reports all came in below expectations, but ultimately take a back seat to Friday’s jobs report, Forrest believes.
Equities had declined after the Conference Board’s consumer confidence index fell to 86 in September from 93.4 the month before and below an expected 92.5.
The S&P/Case-Shiller index of property prices also came in below expectations, rising 6.7 percent from July 2013.
The Chicago PMI for September came in at 60.5, less than the expected 61.9 estimate.
Earnings: Accuity Brands
Monthly vehicle sales
8:15 a.m.: ADP employment
10:00 a.m.: ISM manufacturing
10:00 a.m.: Construction spending
News Sources: CNN Money & CNBC