Hope was in the air after yesterday’s strong rally in stocks, a huge rally in Asian shares overnight, and a nice 150 plus Dow point opening rally this morning. But alas, sellers appeared and another ugly reversal ensued. I don’t think any of us thought that we were out of the volatility woods just yet, did we? The JOLTS number showed job openings up sharply in July (actual hires edged lower), indicating a healthy jobs environment that just might give more credence to a September lift off for the Fed. Of course, I am not sure that market participants are done letting their voices be heard via market disruption just yet.
As for stocks, by the close the Dow Jones Industrial Average was down 239 points to finish the day at 16,253. The S&P 500 was down 27 points to close at 1942. Gold was down $14 to trade at $1107 per ounce, while oil was down $1.65 to trade at $44.29 per barrel WTI.
Yes indeed, volatility remains prevalent in today’s markets, but once again periods of adjustment are marked by higher degrees of volatility. It is part of the process. At the moment I would suspect both the bulls and the bears are less than confident in their view as to the direction of markets near term. We are in somewhat of a vacuum as we wait for the FOMC meeting next week. Let’s first see how the rest of this week plays out.
Have a nice evening everyone.