Stocks are little-changed this morning after a big drop
S&P 500 futures are down by 0.1 percent after trying to rebound
earlier in the morning. Europe is lower by 0.5 percent to 1
percent, while Asian markets fell more sharply in the overnight
Worries about conflict with Syria and investor fatigue have
combined to send equities lower in recent weeks. The S&P 500
made a new all-time high on Aug. 2 but then slipped below its
10-day moving average and has been falling since. It attempted to
rebound earlier this week but once again hit resistance at that key
short-term momentum gauge.
Yesterday's 1.59 percent selloff was the biggest drop since June 20
and represented only the second close below the index's 100-day
moving average this year. The big question now facing investors is
whether to buy the current pullback or wait for a more significant
support level, such as 1600, to be reached.
They must also navigate a market with few calendar events to serve
as catalysts through the long Labor Day weekend three days from
now. But next week is full of pivotal reports, including global
manufacturing numbers and monthly employment data.
Despite nervousness toward geopolitical risk, our
market scanner shows positive sentiment toward stocks and sectors
that will benefit from stronger growth in China, such as shipping
companies and coal miners. Energy has also benefited from higher
oil prices. Financials and consumer discretionary stocks have led
to the downside.
Oil is up another 1 percent this morning, and precious metals are
posting smaller gains on the Syrian tensions. Copper is down more
than half a percent.
Dollar strength is the main theme in foreign-exchange markets, with
the euro and yen both declining against the greenback. The
Australian and Canadian dollars, which tend to follow risk
appetite, are lower as well.
In company-specific news, coal-mining equipment company Joy Global
is down more than 4 percent after reporting weak order growth.
Retailer Express rallied 9 percent on strong quarterly results.
Avago Technologies and TiVo are also pushing higher.
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