U.S. Stocks Open In The Red
Shain Vernier • 1 min read
U.S. stocks have opened trade on the back foot today, posting modest losses through the first half-hour of action. At 10:00 AM EST, the DJIA DOW (-66) , S&P 500 SPX (-.15), and NASDAQ (-1.70) have come in slightly negative. It appears that equities players are hesitant to assume any new risk as the September FOMC meeting gets underway.
During this morning’s pre-market hours, U.S. Industrial Production (MoM, August) was released to the public. The figure came in at 0.6%, well up from July’s number (-0.1%) and projections (0.2%). While not a primary market mover, the strength in Industrial Production is another report that defies the FED’s theme of a pending economic slowdown.
Industrial Production is a FED metric and will surely be scrutinized at this week’s meeting. Today’s release suggests that production is growing and inflation is picking up. If these items are valued by the FOMC, then we may be in for a more hawkish Interest Rate Statement than expected. If so, U.S. stocks will certainly be in for some midweek pressure.
U.S. Stocks Stumble At The Start Gate
While the losses are modest, U.S. stocks continue to show weakness. December E-mini S&P 500 futures are in the red, falling beneath 3000.00.
Here are the levels to watch for the December E-mini S&Ps:
- Resistance(1): All-Time Highs, 3032.25
- 2-Way Catalyst: 3000.00
- Support(1): Bollinger MP, 2954.00
Overview: It is anyone’s guess how U.S. stocks will trade ahead of the FED meeting. However, at the moment it appears that “risk-off” is winning the day. Given the weekend drone strike in Saudi Arabia, and the pending FED announcements, equities traders are treading lightly.