- Stocks still near all time highs despite two-day selloff on N. Korea jitters
- Gold and bonds have done well during the risk-off trading
- In addition to earnings and N. Korea tensions, investors will be paying attention to Fed Chairman Dudley comments tomorrow.
- In coming weeks, Jackson Hole Symposium expected to provide further insight into Fed/ECB stance on tightening and trimming the Fed balance sheet.
Earnings:
Before the bell: Macy’s ($M, est $.44), Kohl’s ($KSS, est. $1.18), Blue Apron ($APRN, est. -.26)
After market close: Nordstrom ($JWN), Snap ($SNAP, est. $-.29), News Corp ($NWSA, est $.09), NVIDIA ($NVDA, est. $.69)
Several other retail names also report on Thursday, which should provide some valuable insight into the general health of consumer spending.
PPI and Jobless Claims: 8:30 a.m. EST: meh
“Even if you get a hotter-than-expected PPI, it’s not going to move the needle,” said Lindsey Group market strategist Peter Boockvar. He said the market is hanging on consumer inflation data, expected Friday morning. Inflation has always been important when the Fed weighs policy, but the lack of inflation has added to doubts that the Fed will be able to raise rates again this year, as it has forecast. –CNBC
Fed President Dudley speaks: 10 a.m.
Dudley will be speaking at a press briefing on wage inequality in the New York region, and will take questions afterwards. This may provide insight on tightening and rate hikes.
Federal Budget: 2 p.m.
Upcoming Catalysts / Events
Aug. 24-26 – Jackson Hole Symposium. Fed officials may issue hawkish comments, ECB president Mario Draghi may shed light on expected reduction in easing policies.
While euro-area inflation is still short of the goal of just under 2 percent, Draghi used a speech at the ECB Forum last month in Sintra, Portugal, to say that “the threat of deflation is gone and reflationary forces are at play.” That sent the euro and bond yields surging on speculation that the central bank is almost ready to pare back stimulus. –Bloomberg
Sept. 19, 20 – Fed meets, expected to begin unwinding its $4.5 trillion balance sheet in September amidst another forecast rate hike.
Sept. 29 – debt ceiling reached, if no action taken U.S. could be in default by October.
Sept. 30 – Deadline for Congress to pass a budget or face shutdown as it did in 2013
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All nicely massaged, rigged and manipulated data, I would add.