I have to wonder if traders have thrown up their hands at all the nasty uncertainty in this market, and sold positions extra early ahead of the long Labor Day weekend. Sure felt like the market had decided to go on vacation early today, August 27. I think it’s going to be hard to get a read on the market until the Tuesday after Labor Day.
U.S. stocks fell in the last hour of New York trading after Secretary of State John Kerry raised the odds for armed U.S. intervention in Syria. With U.S. allies and other countries expressing the need to punish the government of Syrian President Bashar Al-Assad for what looks like the use of chemical weapons on August 21 in the Damascus suburb of Ghouta, markets closed modestly lower.
Since the low on August 21 through the August 23 close the iShares MSCI Emerging Markets ETF (EEM) has climbed 2.8%. What’s most interesting to me, though, is the differentiation in the emerging markets group.
With the markets in oversold territory, good numbers on initial claims for unemployment in the U.S. and improvements in the manufacturing sector in China and German were enough to power a bounce today