The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Snooze button.
Headlines were of the minor variety this weekend and markets played along by doing very little. Overseas markets were mixed small and our markets followed suit. S&P futures traded slightly higher in the premarket but the index opened flat. We traded there until lunch, rallying quickly midday, only to roll over just as quickly, resulting in a slightly negative afternoon. Yields did little and Fed Funds futures haven’t changed significantly since Friday.
Financial news is chattering up a storm as the list of potential Fed Chairman grows. Who knows how people end up on Trump’s consideration list? As of today, the list has the following names:
As names get added to the list, financial news outlets scramble but markets yawn. I’m not sure which individuals markets favor and dislike. At this point, it’s an interesting bake-off but without significant market consequences. Maybe that changes as favorites emerge? As it currently stands, it’s just an example of news that’s worth mentioning but not affecting things.
Tomorrow we will learn the latest datapoint for July CPI (2.8% est vs 2.7% prior). There’s financial outlet chatter about this too: that it will be a significant catalyst for the market tomorrow. Perhaps the importance of the inflation data is keeping investors paused today? Seems plausible but I’m not compelled by the idea either. Certainly if CPI is a big surprise, markets will shake. What if the print is in line? I don’t think investors are going to jump into motion if the number is a bullseye.
We’ll see. For a quiet day in August, looking ahead just a little with an eye towards pending action, makes for good conversation.
See you tomorrow.
-Mike
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