Goodbye, choppy August | Dalio warns of ‘serious problems’

Goodbye, choppy August | Dalio warns of ‘serious problems’ | Trump attacks GM

FRI, AUG 30, 2019

EVENING BRIEF

AS OF FRI, AUG 30, 2019 • 04:00 ET

DJIA		26390.37
		+0.11%	+28.12

S&P 500		2925.35
		+0.03%	+0.77

NASDAQ		7962.88
		-0.13%	-10.51

Most Active

DOW
NAME	LAST	CHG	%CHG
MSFT	137.79	-0.33	-0.24%
AAPL	208.49	-0.52	-0.25%
CSCO	46.78	-0.48	-1.03%

S&P 500
NAME	LAST	CHG	%CHG
GE	8.24	+0.13	+1.60%
AMD	31.45	UNCH	UNCH
BAC	27.49	+0.16	+0.59%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	31.45	UNCH	UNCH
MSFT	137.79	-0.33	-0.24%
AAPL	208.49	-0.52	-0.25%

EDITOR'S NOTE

Stock investors may be happy to kiss August goodbye, but September might not be any better unless we get positive developments in the trade war.

August was a month of worries and volatility. Rising recession risks and trade headlines sent the market in both directions, starting with the Aug. 1 announcement by President Donald Trump that he would put tariffs on $300 billion in Chinese goods. Bond yields plunged throughout the month, with the 30-year still under 2%.

Markets are heading into September with hopes for an interest rate cut from the Federal Reserve, and fears that a slowdown in the global economy will reach the U.S., CNBC's Patti Domm writes in her week ahead preview. Investors are also watching to see if the escalating trade war will begin to hit key data.

Samuel Stovall, chief investment strategist at CFRA, tells Domm that if you thought August was bad, "history says September can be worse." Not only is it the month with the largest average declines, but is the only month when the market falls more frequently than it rises.

"If history repeats itself we could see a sell-off in September and then we have some sort of capitulation," Stovall says.

Investors will be looking for any news on whether face-to-face negotiations between U.S. and Chinese officials will move forward in September, as expected after the last round of talks. Wall Street also will be eyeing some important economic reports next week including August employment, the ISM manufacturing survey and the auto industry's monthly vehicle sales.

Next week could also bring clues on future monetary policy with Fed Chairman Jerome Powell set to speak next Friday, and Fed Governor Michelle Bowman scheduled to speak Wednesday.

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