EmailAnother day of low volume and low volatility, and possibly another slight decline, appears likely.
S&P futures suggest a down open of one to two points.
Inflation remained low in July. CPI was 0.0%. It had been net down the prior three months. The year-over-year increase is just 1.4%. The core CPI rose 0.1% following four straight 0.2% months and is up 2.1% year-over-year. The New York Empire Manufacturing index for August was -5.9, down from 7.4 in July. That isn't a good reading, but futures didn't react. Industrial production will be out at 9:15 ET.
Deere and Staples both had poor earnings reports. Both reported revenue well below expectations and guided revenue forecasts for the year lower. Staples reported profits equal to the average Wall Street forecast, but Deere missed. Both stock prices are lower pre-market. Target also reported revenue below forecasts but profits were higher than expected and the stock is up.
European stock exchanges are slightly lower but there is little news. The Spanish 10-year note yield is down to 6.67%.
Several prominent news sources this morning state that the financial markets are hoping for weak economic data on the belief that would increase the chance of another round of quantitative easing from the Fed. It is bad news when the only good news can come from bad news.
A strengthening economy to boost revenue and profits is much better for long-term investors than the Fed supplying liquidity that supposedly props up asset prices. Apparently, economic improvement is not even hoped for at this time given the weak trends in global economies. There are times when patience is an even greater virtue.
Founder and Chairman, Briefing.com
