Weak Economic Data Out of Europe Weighs On Stocks Early
The market opened lower after weak economic data out of Europe had their markets down before the open. There were disappointing PMI readings out of Germany and a contraction in Ireland's GDP.
Also, jobless claims in the U.S. were a bit higher than expected (465,000), so our markets opened under a fair amount of selling pressure.
After the open, there were two economic reports that came in above expectations, and helped the market bounce. Existing home sales for August rose 7.6%, above expectations. And leading economic indicators were also higher than expected.
The market quickly bottomed this morning, and as of this post, the Nazz is back in positive territory, and the S&P is down only -0.2%.
Among the sector ETFs, all are lower with the exception of tech (+0.40%) which is bucking the weakness.
Asian markets were mostly closed overnight; the 10-year yield is lower again to 2.51%; and the VIX is +2.2% higher so far to 23.01.
Trading comment: The S&P 500 has pulled back to its recent breakout level at 1131, which is the area where I said I would start to put the first tranche of money to work. As such, I will likely to a little buying today, and then take a step back. My second target zone to put more cash to work would be the 200-day average near SPX 1117.