S&P 500 Fundamental Forecast – September 16, 2016

The S&P 500 continued to ease as the greenback rebounds. The index is trading at 2125.77 as the FOMC meeting comes nearer as does a rate increase. Markets are now sure that the Fed will increase rates between now and December. U.S. import prices fell for the first time in six months in August on weak petroleum and food costs, but the declining trend is slowing as oil prices stabilize and the dollar’s rally fades.

Wall Street stocks declined as energy companies fell with the price of oil after three days of big, erratic moves. Apple led technology companies higher. Investors have sent stocks in different directions as they wonder if the Federal Reserve will raise interest rates next week, and they’re also speculating about the health of the global economy. The Dow Jones industrial average lost 31.98 points, or 0.2 percent, to 18,034. The Standard & Poor’s 500 index dipped 1.25 points, or 0.1 percent, to 2,125.77. The Nasdaq composite climbed 18.51 points, or 0.4 percent, to 5,173.77.

“Overnight markets diverged. Shares in Europe and the U.S. fell modestly. Although U.S. rates fell across the board, bond curves continued to steepen. This suggests markets are expecting no change to rates this month, inducing higher levels of inflation later,” Michael McCarthy of CMC Markets said in a report.

Apple rose for a second day after T-Mobile said it is getting strong preorders for new iPhones. Apple gets most of its revenue from the iPhone, and those sales, while still enormous, have finally started to decline in the last year. That’s hurt Apple stock, which traded above $130 a little more than a year ago. It rose 3.6 percent to $111.38.

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Upcoming Economic Events that you should be monitoring:

 September 16, 2016

Government Bond Auctions

Date Time Country Auction

Sep 15 10:30 Spain 0.75% Jul 2021 Bono, 1.3% Oct 2026 bond & 1.95% Jul 2030

Sep 15 10:50 France Eur 5-6bn 0% Feb 2019 & May 2021 OATs

Sep 15 11:03 Sweden Sek 0.5bn 0.125% Jun 2019 I/L & Sek 0.5bn 4% Dec 2020 I/L

Sep 15 11:50 France Eur 0.75-1.25bn 0.1% Mar 2021 & Mar 2025 OAT

Sep 19 11:00 Belgium Holds OLO auction

Sep 20 11:30 UK Jul 2047 Gilt

Sep 21 10:30 Denmark Holds bond auction

Sep 21 11:03 Sweden Holds bond auction

Sep 21 11:30 Germany Eur 4bn 0% Oct 2021 Bobl

Sep 22 17:20 Italy Announces details of bond auction