What’s in Today’s Report:
- Five Catalysts to Decide the Year (Abridged Version)
- ISM Manufacturing PMI Takeaways
- Hurricane Gordon and Energy Markets
Futures are down roughly 10 points, the dollar is modestly higher, and international markets were broadly lower o/n amid fresh trade angst and concerns that the Chinese economy may be slowing.
The privately published Caixin China General Services PMI fell to a five month low in August, contradicting government data that showed continued growth last month.
Today, investor focus will return to trade as talks with Canada are set to resume and the initial tariff deadline for the next wave of tariffs on China, looms.
There is one economic report to watch: International Trade (E: -$50.2B), and several Fed speakers on the schedule: Williams (12:30, 3:00, 5:30 p.m. ET), Kashkari (4:00 p.m. ET), and Bostic (6:30 p.m. ET).
The dollar remains the single best indicator for near term moves in the market right now, so if the dollar continues to extend last week’s rally, stocks will likely remain under pressure, especially emerging market shares. But, if the dollar starts to fade, and fall back towards key support, stocks should be able to retest recent highs.