Commenting on the fed’s crucial Jackson Hole Symposium and today’s trading Gorilla Trades strategist Ken Berman said:
Quiet Trading Continues Ahead Of The Jackson Hole Symposium
The major indices are mixed and flat at midday as the key cyclical sectors edged lower in early trading following yesterday’s rally. Relatively quiet trading continues on Wall Street ahead of the fed’s crucial Jackson Hole Symposium, with traders focusing on the still troubling global COVID trends and the positive trade-related developments. U.S. and Chinese officials reiterated that the two countries are still committed to their "phase one" trade deal, despite their recent diplomatic skirmish and the fact that due to the pandemic, trade volumes have been lackluster compared to the deal's quotas.
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This morning's economic releases were mixed and even the highly-anticipated CB consumer confidence number was well below the consensus estimate, the overall is far from being gloomy. The Richmond Manufacturing Index was much better-than-expected, following a string of weaker numbers from the sector. New home sales also crushed expectations similarly to last week's sales numbers, coming in at annualized 901,000 units, while the indicator's previous reading was also revised higher.
Dow: 28,153, - 156 or 0.6%
S&P 500: 3,434, + 3 or 0.1%
Nasdaq: 11,403, + 23 or 0.2%
Russell 2000: 1,561 - 8 or 0.5%
Market breadth has been relatively weak this morning as small-caps have been lagging the broader market, with decliners outnumbering advancing issues by a 3-to-2 ratio on the NYSE at midday. Only 16 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 66 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon. Today’s session has been the mirror image of yesterday’s one in early trading, as far as the key sectors are concerned with cyclical issues and the most COVID-sensitive stocks pulling back slightly, but tech stocks outperforming in the nervous environment. Stay tuned!