After the market's close this past Tuesday we wrote a post discussing how the market technicals had turned more positive and the market did not disappoint. For this past week the equity market did turn higher with the major U.S. indices posting weekly gains. The standout was the Nasdaq Composite Index returning 2.2% and now up 6.9% on the year. The much watched small cap index, the Russell 2000, managed to generate a gain of .9%; however, the index remains down 1.9% year to date. Last week's news was dominated by geopolitical issues, e.g., the Ukraine/Russia conflict. The issues taking place on the European continent seem to be impacting economic and consumer sentiment in the Euro Zone. As Econoday noted in their weekly recap,
"Numbers for second quarter GDP for France, Germany, and the EU fell below expectations—including a negative number for German GDP, largely damped by Ukraine concern. It was more current news that lifted stocks after President Vladimir Putin said Russia will work to stop the conflict in eastern Ukraine. Equities were mixed Friday on a report that Ukraine government forces attacked an armed convoy from Russia—allegedly carrying humanitarian aid."
The highlight for this week may be commentary from the Fed Symposium at Jackson Hole. This event has taken place since 1978 and this year's topic will be "Re-Evaluating Labor Market Dynamics." In the interim, potential market moving economic reports for the coming week include:
- Consumer Price Index and Housing Starts (M)
- FOMC Minutes (W)
- Jobless Claims, Philadelphia Fed Survey and Existing Homes Sales (Th)