S&P 500 Fundamental Forecast – September 9, 2016

The S&P 500 remains near its top and close to a record high as the US dollar continues to weaken. The index is trading at 2186.15. The Dow Jones was up 16 points, or 0.1%, at 18,530.00 and the Nasdaq tacked on 3.5 points, or 0.1%, to 4,832.25. Still in focus are Apple shares, which were down 0.4% premarket. They closed up a modest 0.6% on Wednesday after the launch event for the new iPhone 7 handset and other devices.

The Federal Reserve’s Beige Book on Wednesday provided few clues about the pace and timing of future changes to monetary policy. Most districts across the United States saw “modest” or “moderate” expansion in the most recent period, including gradual improvements in consumer spending and the labor market.

The Fed is not expected to hike rates at its next policy meeting September 20-21. However, traders are expecting one rate increase before the end of the year, according to the CME FedWatch tracking tool.

The markets lowered their rate-hike bets after last Friday’s nonfarm payrolls report showed a net gain of 151,000 jobs in August. Other measures of labour slack were little changed.

Investors have been weighing the likelihood of a rate hike this month from the Federal Reserve, with recent economic data including last Friday’s weaker-than-expected jobs report suggesting the US central bank could hold off for now.

The Fed said on Wednesday afternoon in its Beige Book report of anecdotal information that the US economy expanded at a modest pace in July and August, but there was little sign that wage pressures are being felt beyond highly skilled jobs.

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Upcoming Economic Events that you should be monitoring:

 September 9, 2016

Government Bond Auctions

Date Time Country Auction

Sep 08 11:00 Ireland Holds bond auction

Sep 08 17:20 Italy Announces details of bond auction