Market Update for 31st Aug 2016 – Told you so…

By Markus Heitkoetter

Stocks finished lower for the second day in a row.

Similar to yesterday, stocks dropped for most of the morning session. But an afternoon rebound helped recoup some of the earlier losses.

In yesterday’s newsletter we warned that THIS streak could come to an end.

And it happened…

With today’s loss the S&P turned negative for the month of August, and the DOW’s 6-month win streak comes to an end.

Here’s where the major indices ended the day:

  • The S&P finished with a 0.2% decline. Down 5 points, the S&P ended at 2,171.
  • The DOW ended 0.3% lower. Dropping 53 points, the DOW closed at 18,401.
  • The NASDAQ was down 0.2%. With a 10 point loss, the NASDAQ finished at 5213.

And here’s where the indices ended the month:

  • S&P down 0.1% with a 3 point loss.
  • DOW down 0.2% with a 31 point loss.
  • NASDAQ up 1.0% with a 51 point gain.

Crude Oil (CL) ended lower for the third straight day. With a 3.4% loss, Cl finished at $44.77 a barrel.

Crude Oil was down overnight. But the big drop came after today’s Crude Inventories. The report showed a 2.3 million barrel surplus compared to the 1.1 million that was expected.

In Fed news, Fed Member Rosengren said that we could see inflation and employment targets met soon. At the end of the day, the probability of a rate hike in September had increased to 27% (up 3% from yesterday), while the probability of a December rate hike sits at 59.5%.

Tomorrow’s economic calendar features Unemployment Claims at 8:30am ET and ISM Manufacturing PMI at 10:00am ET.

But the big report this week comes on Friday when the Jobs Report is released at 8:30am ET.

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