Why Did Stocks Drop?
What’s in Today’s Report:
- Why Did Stocks Drop?
- Fed Minutes Takeaways
- EIA Data Takeaways and Oil Update
There are risk-off money flows across asset classes this morning as investors fear that central banks are poised to tighten policy into a global economic slowdown this fall.
This week’s options expiration is likely amplifying the volatility this morning.
There were no market-moving economic reports or material news developments overnight.
Today, there are two economic reports to watch: Jobless Claims (E: 360K) and the Philadelphia Fed Manufacturing Index (E: 25.0).
No Fed officials are scheduled to speak today but there is a 30-Year TIPS auction at 1:00 p.m. ET that could move bond yields.
Volatility is likely to remain elevated today as we get closer to tomorrow’s options expiration while trader conviction is low given Jackson Hole looming next week as well as the fact that investor sentiment has deteriorated this week.
Editor’s Note: No Report Tomorrow
There will be no Report tomorrow, as I will be attending a funeral. Last week, my father, Tim Essaye, Sr., unexpectedly passed away. His funeral and memorial will be held today.
My dad helped get me on Wall Street when I got out of college and without his support and encouragement, I wouldn’t have had the courage, with my wife Alison pregnant with our first child, to leave a good job and start a new, daily market report.
He was the first subscriber to the Sevens Report.
So, for the first time in the nearly 10 years since I started the Sevens Report, there will be no issue on a trading day, as I will be focused today on celebrating his life with our family and friends.
I apologize for this inconvenience and thank you for your understanding.
