Wall Street appears on track to pause in the first trading session of the new week after the strong rebound from its Aug. 5 market collapse. The lack of any major trading catalysts makes it all the more complicated to determine the trading direction. The momentum is on the market’s side, as two of the three majors are entering the week with a seven-session rally. Chip stocks weakened in the premarket following their recent advances.
The four-day Democratic National Convention kickstarts on Monday and news out of the event could also sway the market. Fund manager Louis Navellier said, “The September 10th debate is shaping up to be a big deal, and consumer confidence is expected to rise as the Presidential candidates promise us everything and anything.”
Futures
Performance (+/-)
Nasdaq 100
-0.04%
S&P 500
+0.04%
Dow
+0.05%
R2K
+0.12%
In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) edged up 0.03% to $554.49, and the Invesco QQQ ETF (NASDAQ:QQQ) fell 0.02% to $474.73, according to Benzinga Pro data.
Cues From Last Week:
U.S. stocks rode high in the week ended Aug. 16 on the back of twin benign inflation reports, an unexpected drop in jobless claims, and a healthy retail sales report. After starting the week on a nervous note as traders paused for a breather, the major averages kicked into top gear on Tuesday following the release of the July producer price inflation data.
Stocks ground higher yet again Wednesday, although with much-tempered buoyancy, as the July consumer price inflation report confirmed the downward trajectory in pricing pressure. The healthy July retail sales report, the weekly jobless claims data, and positive commentary from Walmart, Inc. (NYSE:WMT) reinvigorated the rally on Thursday. Stocks sustained the uptrend on Friday before closing the week notably higher.
The tech-heavy Nasdaq Composite and the S&P 500 Index are on a ...
