Stocks Give Back On Tuesday After Explosive Market Monday

Following Monday's ramp-alooza based on absolutely nothing other than consumer spending hitting its target, stocks lost ground on Tuesday heading into the Labor Day holiday weekend.

Since this is absolutely the slowest week of the year for everybody except maybe vacation rentals, don't look for any kind of major move in either direction prior to next Tuesday.

A week of nothing, otherwise known as the pain trade. There should be some profit-taking and squaring down on risky positions, but, again, nothing overtly dramatic.

Everything has absolutely flattened out, except possibly the $/Yen pair, back up to 103 on the day.

Tuesday's Trauma:
Dow Jones Industrial Average
18,454.30, -48.69 (-0.26%)

NASDAQ
5,222.99, -9.34 (-0.18%)

S&P 500
2,176.12, -4.26 (-0.20%)

NYSE Composite
10,797.10, -14.24 (-0.13%)

Yellen Speaks, Markets More Confused After Comments By Fisher, Bullard, Lockhart

After a week-long wait for something of substance from Fed Chair Janet Yellen in her widely-anticipated speech at Jackson Hole Friday, markets were somewhat disappointed when what they got from the aging, dowdy Fed Chairwoman was more of the same, a garbled, directionless mumbling about a strengthening US economy and plenty of buts, ahs, and well maybes.

Yellen seemed to express that a rate hike was on the table in September - just as it was in February, June and July - but offered certain caveats, not the least of which was that unexpected events could derail any plans the Fed might have considered.

Adding to the dismay and confusion were three separate comments by Fed officials in the immediate aftermath of Yellen's speech.

Vice Chairman, Stanley Fischer first spoke up with a weak affirmation that a rate hike in September was possible, but quickly afterward, Atlanta president, Dennis Lockhart, and St. Louis president James Bullard offered a different view, questioning the wisdom of a rate hike in September or even December.

Since markets have been on a razor's edge since Brexit and will be until the presidential election in November, it does seem a stretch that the Fed would risk a market collapse triggered by a rate hike, such as what happened after their last 1/4 basis point increase last December.

The Fed being less stoic and more political than ever, risking injury to Hillary Clinton's election - the choice of the status quo - would be foolhardy and dangerous.

Not to say that the Fed is not both of those, but when there's a real risk that an outsider - Donald J. Trump - could ascend to the highest office in the land, the Fed will be watching its own best interests, which would imply that a federal funds rate increase in September is certainly a no-go.

Now that the Fed has wasted the better part of a month and delivered nearly nothing of substance, one wonders what they can do for an encore. Oh, that's right. Eight years of loose, experimental monetary policy and promises of more to come.

What fun.

Friday's Closing Data:
Dow Jones Industrial Average
18,395.40, -53.01 (-0.29%)

NASDAQ
5,218.92, +6.71 (0.13%)

S&P 500
2,169.04, -3.43 (-0.16%)

NYSE Composite
10,749.33, -35.04 (-0.32%)

For the Week:
Dow 30: -157.17 (-0.85%)
S&P 500: -14.83 (0.68%)
NASDAQ: -19.46 (-0.37%)
NYSE Composite: -79.83 (-0.74%)

Continued Sluggishness In Equity Markets Awaiting Janet Yellen At Jackson Hole

Investors (if that's what they're being called these days) are largely on hold in advance of Fed Chair Janet Yellen's speech at Jackson Hole tomorrow and a return to what passes for normal conditions following the Labor Day holiday.

Essentially, stocks have been treading water for the past month, since setting new all-time highs mid-July and making a double top earlier this month.

For whatever it's worth, the one bid by the Fed and its central bank allies has produced a very dull market, if that's what we're calling it these days.

Of particular note is the current odds for a rate hike in September, currently hovering around 18%. For a December rate hike, it's basically a 50-50 proposition, though neither is actually very likely considering the fragility of the global economy.

Thursday's Closing Prices:
Dow Jones Industrial Average
18,448.41, -33.07 (-0.18%)

NASDAQ Composite
5,212.20, -5.49 (-0.11%)

S&P 500
2,172.47, -2.97 (-0.14%)

NYSE Composite
10,780.23, -10.95 (-0.10%)

Stocks Stuck Until Labor Day

Editor's Note: Very rough schedule this and next week, so there may not be the usual market banter. For now, stocks seem stuck until after Labor Day. Of course, any big news will be reported upon. Enjoy the summer weather!

Nothing to write home about today, as stocks ramped early in the session and sold off the rest of the day. Sluggish is an appropriate way to call it.

Tuesday's Travails:
Dow Jones Industrial Average
18,547.30, +17.88 (0.10%)

S&P 500
2,186.90, +4.26 (0.20%)

NASDAQ
5,260.08, +15.47 (0.30%)

NYSE Composite
10,847.49, +31.57 (0.29%)

Slow Week For Stocks Ends With Losses

Despite various new highs, stocks traded in a very tight range over the course of the week.

Not surprisingly, August is the most popular time for vacations, not exclusive of stock brokers, traders, managers and all those who participate in making the markets.

Friday's trading was particularly sluggish, with all the major averages finishing in the red, albeit, slightly.

The weekly figures were hardly encouraging to either bears or bulls, with the main indices offering losses or gains of fractions of one percentage point, the S&P the least affected, down 0.18 points.

Leading into the final full week of August trading, with monthly options already having expired (Friday), another week of widespread complacency is expected.

Figures for Friday:
Dow Jones Industrial Average
18,552.57, -45.13 (-0.24%)

NASDAQ
5,238.38, -1.77 (-0.03%)

S&P 500
2,183.87, -3.15 (-0.14%)

NYSE Composite
10,829.15, -33.86 (-0.31%)

For the Week:
Dow: -23.90 (-0.13%)
S&P 500: -0.18 (-0.01%)
NASDAQ: +5.48 (0.10%)
NYSE Composite: +6.74 (0.06%)