S&P500 set to open above 2,000
01:00, 29 augusti 2014
· Av CMC Markets
If today’s rebound in Europe is anything to go by then yesterday’s decline for US markets could well be a one off for this week.
Concerns about events in Ukraine saw US markets fall back for the first time this week, but it would appear that this morning’s rebound in Europe is helping in pushing US futures higher, and potentially see the S&P500 open at an all-time high.
Markets appear to have taken some comfort from President Obama’s measured response last night, when he declined to call recent developments in Ukraine an invasion. While many would argue that is mere semantics the fact is markets appear more buoyant today.
That being said with the long weekend in the US coming up it would be a very foolish investor who didn’t act cautiously with respect to their exposure, particularly with events in Ukraine remaining quite fluid and the potential for escalations growing by the day, particularly as President Putin of Russia is becoming less concerned about expressing his support for the separatists.
After yesterday’s surprisingly positive US Q2 GDP upgrade attention now turns to the latest US inflation numbers with the release of the latest PCE data for July. This is expected to show that prices remained stable, coming in at 1.6%.
While growth in the US appears to be recovering the consumer looks set to continue to remain cautious with the latest personal spending data set to fall to 0.2% from 0.4%, while personal incomes are expected to rise 0.3% down from 0.4%.
Chicago PMI for August is expected to recover from its shock drop to 52.6 in July, coming in at 56.8.
In company news Big Lots will announce its latest Q2 results in an environment which remains increasingly competitive discount retail sector. The company’s share price performance this year has been impressive, up over 45%, after management made the decision to pull out of Canada, and refocus on its home market.
With same store sales starting to improve the markets will be hoping for more of the same today.
The Dow Jones is expected to open 43.43 points higher at 17,123
The S&P500 is expected to open 6.6 points higher at 2,002.80
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