Investors may be getting a case of déjà vu. With only two trading days into the new month, September is shaping up to be a bit like August — and July for that matter. Interest rate policy and “give-and-take data” has continued to drive the market’s recent pattern of one day up, the next day down. That relative volatility and lack of a definite direction was the major theme in August. And September is shaping up to be very similar already.
That’s because data this week came in mixed. There were several major bullish and positive points across several metrics, including consumer confidence, manufacturing data, and housing-related data. However, they were met with equally as important negative trends in employment, crude oil, and regional industrial activity. The two sides basically canceled each other out and the market continued to be mixed.
Earnings didn’t help either. Again, reports this week were mixed — with many firms reporting profits but lousy guidance figures. The lack of great future confidence was met with disdain by many traders.
All in all, the end of August brought slight losses to the markets. And September is shaping up to be a repeat of the last 30 days.
