Markets Uneven After Rally Fades
Markets were mixed in trading today, with the tech-heavy NASDAQ declining as the Dow and S&P 500 advanced. The Dow posted a gain of 23.38 points and closed out the trading day at 16,374.76. The NASDAQ fell by 16.48 points and ended the day's trading at 4,733.50. The S&P 500 closed up a scant 2.27 points, and ended the day at 1,951.13.
In overseas trading, markets were up worldwide with the exception of Hong Kong. The Hang Seng index fell by 250.49 points and closed the day at 20,934.34. Germany's DAX shot up by 277 points and closed out the day at 10,317.84. Japan's Nikkei held steady with an 87 point gain.
Euro Falls to Near Record LowsThe Euro was in freefall today, despite the fact that European markets were strong.
China Continues to ImplodeThe Chinese contraction continued in earnest today, as Chinese stocks lost another 1.20%. This brings the total for the trailing month up to over 10%, compared to American markets which have only contracted by 7% in the trailing month. The Chinese economy had been growing at a rate of 5% per month, but has slowed down considerably lately.
A 10% contraction is unusual for Chinese markets, due to their pace of growth. As a result the Chinese central government isn't dealing well with this current crisis. They’ve pulled money out of the bond market and used the capital to shore up their falling stocks. This latest move will hopefully stabilize their marketplace and end the freefall, allowing domestic markets to recover.
Markets Brace for Tomorrow's Job ReportTomorrow marks the last jobs report before the Fed meets in September to decide whether or not to raise interest rates. The upcoming August jobs report is turning heads because it will likely make or break the decision by the Fed.
Analysts expect the economy to have added 223,000 jobs this last month, and will likely cause unemployment to fall to 5.2% from 5.3%. This month should spell out larger gains for the economy than the July report, which was relatively anemic. Analysts are unsure what that could potentially mean for interest rates, although the smart money is on a raise of the prime rate by 0.50.