U.S. Markets Fluctuate in Absence of New Data

With the nearly flawless July jobs report still fresh in investors’ minds, the majority of risk assets continue to rally.  Following the release, traders are now pricing in more than 50% chance of a rate hike come the December FOMC meeting, as many view an increase unlikely before the November election.  The U.S. dollar gained against a basket of currencies as well, highlighted by a .71% increase against the Japanese yen.  In equities overseas, Asian markets saw the biggest jump with a 2.4% rise in the Nikkei while European shares saw modest gains.  Oil prices rose once again following a report that OPEC will hold an informal meeting next month in attempt to come to an agreement to taper production.

In the absence of substantial economic reporting early this week, expect U.S. markets to initially be paced by corporate earnings releases and end with the July retail sales data this Friday. Within the sector, Wal-Mart completed its largest U.S. acquisition to date today, purchasing Jet.com for $3.3 billion.  The deal is reportedly comprised of $3 billion in cash along with $300 million in shares.  The addition of the Jet.com signifies another attempt to compete with Amazon in the e-commerce space.  Wal-Mart’s share price (WMT) is down roughly .6% on the day.     
 
All three major US stock indexes are marginally down, with the S&P 500 losing .1% as healthcare stocks weighed down the market. Oil prices are up 3%, as Brent and WTI are trading over $45 and $43, respectively.  Treasury yields have held steady throughout trading with the two-year and 10-year Treasury remaining flat for the day.