The trading week got started on a positive note. The major indices all pushed higher on Monday, albeit on remarkably light volume at the NYSE and Nasdaq. Still, a gain is a gain for anyone who might have been looking to sell at higher prices.
This morning, it appears as if market participants aren’t aiming to do much of anything.
The S&P 500 futures are down three points and are trading 0.1% below fair value, the Nasdaq 100 futures are down 21 points and are trading 0.1% below fair value; and the Dow Jones Industrial Average futures are down 30 points and are trading 0.1% below fair value.
These moves are coming on thin volume and today’s moves in the cash session are also likely to come on thin volume (again). If market participants aren’t checked out physically, then many remain checked out mentally, finding other diversions ahead of the Labor Day weekend.
There are news catalysts upon which to trade, however, for those choosing to trade.
- Best Buy (BBY) reported better than expected Q2 earnings and said it expects FY24 comp sales to decline 4.5-6.0% versus its prior guidance for a decline of 3.0-6.0%.
- Bloomberg reports that China’s biggest banks are likely to cut rates on deposits and existing mortgages in a bid to stimulate growth.
- The Biden Administration named the first 10 drugs that are going to be subject to Medicare price negotiation.
- Citigroup upgraded AT&T (T) and Verizon (VZ), noting in part that the wireless business is showing signs of stabilizing, according to CNBC.
What’s missing is the broad market trading catalyst. That might perhaps avail itself at 10:00 a.m. ET with the release of the July JOLTS – Job Openings Report and the August Consumer Confidence Index.
Those releases should be drivers of the Treasury market, which has been a driver of the stock market this month.
The 2-yr note yield is currently down four basis points to 5.02% and the 10-yr note yield is unchanged at 4.21% after skimming 4.17% in overnight action.
Of course, we should probably hold off using the word “action,” which seems a bit of a stretch in these dog (trading) days of August.
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Originally Posted August 29, 2023 – Some dog days of trading
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