Monday, August 11
While Friday was seen as a victory for Wall Street, the higher close highlighted the day-to-day volatility of the market.
Despite the widespread reports of an ongoing bull market, Friday’s rally was needed to push the Dow Jones average just barely into the black for 2014. Overall, the Dow is down almost 600 points since attaining its all-time high less than one month ago.
The geopolitical scene is no more predictable, as a second round of air strikes against Iraqi insurgents occurred after the close of business Friday. A frank proclamation from President Obama followed, warning there would be ‘no quick fix’ to the crisis.
At the same time, Israel and Palestine agreed Sunday to a 72-hour cease fire. The situation in Ukraine cooled considerably, with division among rebels allowing Ukrainian forces to retake key points.
Retail data will impact market direction this week, as Macy’s and Wal-Mart deliver second-quarter earnings reports. Experts believe these reports may give us some gauge on how consumers are reacting to global tensions.
Friday Closing Bell
Dow Jones Industrial Average: 16553.93
S&P 500: 1931.59
Economic Watch: Monday figures to be a quiet day in terms of data. The release of information begins to pick up Tuesday with the monthly budget, followed by several earnings reports Wednesday and Thursday.