Minutes from US Federal Reserve's July policy meeting released last week failed to provide any clear signal of when the central bank will start scaling back its bond purchases.
While, the release of the minutes initially rattled Wall Street, major stock indices ended the week in green zone.
For the week, DOW fell 0.5%, S&P 500 gained 0.5%, and NASDAQ added 1.5%.
Last week was not a good week for electronic trading. First, Goldman Sachs (NYSE:GS) experienced a software glitch in its trading system on August 21 that accidentally spammed exchanges with false stock options orders. Then, NASDAQ came in the limelight — Low volume was dramatically exacerbated on August 22 after a technical glitch halted trading on the NASDAQ exchange for more than three hours. These problems raise new questions about the pitfalls of the electronic trading systems that have come to dominate stock markets globally.
This upcoming week is unlikely to bring much clarity on the issue of tapering of Federal Reserve bond purchases. Uncertainty, along with what is expected to be anemic trading heading into the Labor Day holiday on September 2, could lead to sideways action in the markets.
Following are Sentiment charts for S&P 500 (NYSE:SPY), DOW Jones, and NASDAQ (NASDAQ:QQQ).
Following is an economic overview for the week August 26 - August 30, 2013.
(All times EST)
Monday, August 26
08:30 — US Core Durable Goods (July 2013):
Monthly report may indirectly indicate shifts in US demand for commodities such as oil and gas.
Tuesday, August 27
10:00 — CB Consumer Confidence:
For June 2013, consumer confidence index fell to 80.3 (m/m) from 81.4 in May 2013. An increase in current consumer confidence may positively affect commodities prices.
Wednesday, August 28
10:00 — US Pending Home Sales:
This report will present shifts in pending home sales for July 2013. In June 2013, pending home sales slipped by 0.4% (m/m). If the upcoming report shows further decline in sales, the US dollar may get adversely impacted.
10:30 — US Crude Oil Inventories:
EIA (Energy Information Administration) will publish its weekly report on US oil and petroleum inventories for the week ended on August 25 2013.
Thursday, August 29
08:30 — Preliminary GDP (q/q):
In the previous estimate US GDP increased by 1.7% in Q2 2013. A higher revision in the growth rate may positively affect the US dollar and commodities prices.
08:30 — US Unemployment Claims:
Weekly report will refer to changes in initial jobless claims for the week ending on August 25. In the previous report jobless claims increased by 13K to reach 336K. This upcoming weekly report may affect the US dollar and consequently commodities and equities markets.
Friday, August 30
08:30 — Canada GDP:
Monthly update will present developments in major industrial sectors for June 2013. In May 2013, real GDP increased by 0.2%. This upcoming report may affect the direction of the Canadian dollar, which is strongly linked with commodities prices.
09:55 — Revised University of Michigan Consumer Sentiment:
University of Michigan will publish its revised consumer sentiment monthly report. This survey could offer information regarding recent developments in US consumer sentiment.
This commentary is for informational purposes only and does not constitute investment advice. The opinions offered herein are not recommendations to buy, sell or hold securities. Market IQ expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.