S&P 500 Fundamental Forecast – August 29, 2016

The S&P 500 eased ahead of Janet Yellen’s speech due in a few hours. The index is trading at 2172.47. Traders are hoping that Yellen will offer some guidance as to future moves by the Fed. Wall Street closed slightly lower Thursday, with investors reluctant to make big bets the day before a much-anticipated speech by Federal Reserve Chairwoman Janet Yellen that will be picked apart for clues to the central bank’s next rate move.

The Dow Jones Industrial Average DJIA, -0.18% slid 33.07 points, or 0.2%, to close at 18,448.41. Shares of Cisco Systems rose 0.7% to lead blue-chip gainers, while Wal-Mart sank 1.4% to drag on the blue-chip index. The S&P 500 fell 2.97 points, or 0.1%, to close at 2,172.47, with the health-care sector leading the decline, while the Nasdaq gave up 5.49 points, or 0.1%, to end at 5,212.20.

In a speech scheduled for 10 a.m. Eastern Time, Yellen may signal the Fed is ready to raise interest rates next month. Some analysts are sounding downbeat ahead of her address. Data released this morning were supportive of the US dollar and the economy with both the goods trade balance and GDP price index reported better than expected results.

Based on action in futures markets, traders put the odds at just above 50/50 for a December interest rate increase by the Fed, with the odds of a September hike rising to about 30 percent from around 20 percent last week. (CNBC)

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August 29, 2016

Government Bond Auctions

Date Time Country Auction

Aug 25 18:00 US Holds 7yr note auction

Aug 26 10:10 Italy Holds zero coupon