Where Have All the Buyers Gone????

+  Intro: Investors will be watching for the latest developments out of China while we have a busy economic calendar domestically highlighted by CPI, Building Permits and Philly Fed. At the end of the week, traders will turn their attention to the Jackson Hole Symposium. Buybacks will also likely dominate the trading on some low volume down days

+  Jackson Hole Symposium: From 8/20 – 8/22, central bankers and financial ministers meet at an economic symposium in Jackson Hole, Wyoming. Even though meetings are closed to the press, officials will talk to reporters and give comments and speeches. Any comments that may discuss the timing of the potential Fed rate hike can move the markets in either direction. Traders will also look to hear what central bankers from around the world have to say regarding the recent moves in China and what they think may come next

+  China: Last week, the PBOC People’s Bank of China devalued the tightly controlled Chinese currency. The move triggered the largest one day loss for the yuan in 2 decades. Traders will be watching for any additional signals out of Beijing to help prop their slowing economy. Some analysts have also speculated that the move was a play on the Fed’s potential rate hike in September

+  FOMC Meeting Minutes: On Wednesday (8/20) the latest FOMC Minutes are released. Investors will be looking closely at the language to see what may have changed from the previous FOMC minute. The latest developments out of China will not be present in this report

+  Buyback Central: After the largest two-day selloff since January, last Wednesday  (8/12) saw Goldman Sachs Unit that executes share buybacks come in providing fresh cash to have its busiest day since 2011. So the buying that propped up the market was done by the corporations themselves. Traders will watch to see if the buy side continues to stay on the sidelines as they are likely waiting for the Fed’s decision on interest rates next month.  

+  Oil: Also last week, oil hit a new 6 year low on the slowdown in China. Traders will watch to see if oil can continue to fall and enter the $30’s. range

+  Earnings: Earnings wind down with this being the last substantial week for 2Q earnings highlighted by Walmart and Home Depot

+  Summer Slowdown: The last two weeks of August are traditionally the slowest part of the year, similar to the week between Christmas and New Years. So any macro news hitting the markets has the potential for volatility due to low liquidity if news was to hit a certain sector

 

MONDAY (8/17)

  • Japan Prelim GDP
  • 8:30 AM ET – Empire Manufacturing - Aug
  • Earnings: Estee Lauder

 

TUESDAY (8/18)

  • 8:30 AM ET – Housing Starts – Jul
  • 8:30 PM ET – Building Permits - Jun
  • Reserve Bank of Australia Policy Meeting Minutes
  • Great Britain CPI
  • Earnings: Walmart, Home Depot, TJX

 

WEDNESDAY (8/19)

  • 8:30 AM ET – CPI - Jun
  • 10:30AM ET – Crude Oil Inventories
  • 2:00 PM ET – FOMC Minutes – Jul –
  • Reserve Bank of New Zealand Inflation Expectations
  • Earnings: Lowe’s, Target

 

THURSDAY (8/20)

  • 8:30 AM ET - Weekly Jobless Claims
  • 10:00 AM ET – Existing Home Sales - Jul
  • 10:00 AM ET – Philadelphia Fed – Aug
  • 8:30 AM ET – Leading Indicators – Jul
  • Bank of Japan Monetary Policy Statement and Press Conference
  • FOMC Member John Williams Speaks
  • Great Britain Retail Sales
  • Canada Wholesale Sales
  • Jackson Hole Symposium
  • Earnings: Hewlett- Packard, Salesforce.com

 

FRIDAY (8/21)

  • Caixin Flash Manufacturing PMI
  • Japan Flash Manufacturing PMI
  • European Flash Manufacturing PMI
  • European Flash Services PMI
  • Canada CPI and Retail Sales
  • Jackson Hole Symposium
  • Earnings: Deere