S&P And Nasdaq Hit New All-Time Highs Again  Image: Shutterstock Stocks were mostly higher yesterday with the S&P and Nasdaq leading the way again with new all-time highs being seen by both. Strong earnings, a rebounding economy, and word from Fed Chair Jerome Powell on Friday that the Fed would likely begin tapering their bond buying in the coming months lifted stocks. Of course, news that the Fed would be tapering sooner rather than later was no secret. They had been hinting at it for months. So Friday's revelation was hardly a revelation at all. But it struck the right tone as inflation continues to rise and traders have become anxious as to when the Fed would do something about it. With the Fed now looking to act, that has calmed some fears that inflation was being left unchecked.
But with interest rates still likely to stay near zero for the foreseeable future (rest of 2021, all of 2022, and a portion of 2023), the Fed has signaled that they will still do everything they can to support the economy as well. One of the Fed's mandates is also maximum employment. And we'll get another look at the jobs market with Friday's Employment Situation report.
But we'll get plenty more reports before that. Today we'll get retail sales via the Redbook report, the Case-Shiller Home Price Index, the Chicago PMI, and Consumer Confidence. On Wednesday we'll get MBA Mortgage Applications, the ADP Employment Report (often considered a precursor to the Employment Situation report that follows two days later), the PMI and ISM Manufacturing reports, and Construction Spending. On Thursday we'll get more jobs numbers with Weekly Jobless Claims, the Challenger Job-Cut Report, and Factory Orders. And then finally, Friday's employment report, not to mention the PMI Composite Index, and the ISM Service Index. Should be a busy week. And the 3-day Labor Day weekend that follows (the markets will be closed on Monday for Labor Day), will be well deserved. BTW, last week I pointed out Monday's breakaway gap in both the S&P and the Nasdaq. A gap that's typically left unfilled, and a signal that the market was at the beginning of a significant move up. Yesterday's gap higher in both the S&P and Nasdaq again suggests we just saw a runaway gap (or measuring gap), where the market is moving up effortlessly. These gaps should also remain unfilled as they typically act as support as the market moves higher. So keep your eyes on that and make sure you're taking full advantage of the market. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
没有评论:
发表评论