Weekly Newsletter September 2nd - September 8th

Current Events: A choppy and somewhat stagnant market attempts to hold on to gains experienced earlier in the year, even following a poor August showing in both performance and volume. With U.S. elections just around the corner, decisive help may not come soon enough as uncertainty appears to reign supreme, at least for the time being.

What to Look for This Week

Key data on the health of the U.S. job market set to be released early Friday morning will greatly impact U.S. markets, with for investors undoubtedly focusing in on the unemployment rate. While the unemployment rate has be stuck at 8.3% for some time now, some analysts are forecasting a slight improvement in this week's report.

News Affecting the Markets

A two-week high for the NYSE composite in terms of volume is a glimmer of hope for eager investors looking to jump back into the relatively lackluster U.S. markets. Tuesday, September 4th marked the largest volume trading day for the exchange since August 21st with 3.06 billion shares traded on the day. While the average daily volume for the year has been roughly 3.63 billion shares a day, the up-tick in volume is certainly hungry investors can hang their hats on as a sign of progress. The Nasdaq also experienced its largest volume day on Tuesday since August 21st, as well, reaching 1.49 billion shares on the day.

Smart Investing

The World of Investing: Governments do it. Companies do it. Fund managers do it. Millions of ordinary working people, from business owners to factory workers, do it. Housewives do it. Even farmers and children do it. 'It' here is investing: the science and art of creating, protecting and enhancing your wealth in the financial markets. Getting involved with investing can seem challenging, confusing, and very risky to someone looking from the outside in. In fact, to some actually involved with investing it too seems that way. However, the process and methodology of investing can be quite manageable and practical if taken step by step. Two key things that must be considered prior to beginning the process of investing are goals and resources. First it is important to determine what is the ultimate goal; is to gain security, income, wealth, or a combination of the before-mentioned. The second is to determine what amount is truly disposable income, what amount is desired, and what amount is needed to survive. Often individuals fail to decide on these and unclear, unrealistic expectations lead them into avoidable mistakes. Thus, map out what your goals are for investing and how much financial backing you have to accomplish these goals prior to jumping into the world of investing.

Earnings for the Week

Monday: No major announcements.

Tuesday: Campbell Soup Co (CPB), Pep Boys-Manny Moe and Jack (PBY) {After the Close}, Smithfield Foods Inc (SFD)

Wednesday: Dollar General Corp (DG), H & R Block Inc (HRB) {After the Close}, Men's Wearhouse Inc (MW) {After the Close}, VeriFone Systems Inc (PAY) {After the Close}

Thursday: Hovnanian Enterprises Inc (HOV), Navistar International Corp (NAV), Quiksilver Inc (ZQK) {After the Close}, Smith & Wesson Holding Corp (SWHC) {After the Close}, Ulta Salon Cosmetics and Fragrance Inc (ULTA) {After the Close}

Friday: Kroger Co (KR)
* Earnings dates and times are subject to change

Economic Data this Week

Monday
No announcements scheduled.

Tuesday
ISM Index @ 10:00 AM for August (Est. = 49.0 to 50.0, Actual = 49.6)
Construction Spending @ 10:00 AM for July (Est. = 0.5%, Actual = -0.9%)
Auto Sales @ 2:00 PM for August (Est. = n/a, Prior = 5.0M)
Truck Sales @ 2:00 PM for August (Est. = n/a, Prior = 6.0M)

Wednesday
MBA Mortgage Index @ 7:00 AM for 09/01 (Est. = n/a, Prior = -4.3%)

Thursday
Initial Claims @ 8:30 AM for 09/01 (Est. = 373K to 375K, Prior = 374K)
Continuing Claims @ 8:30 AM for 08/25 (Est. = 3300K, Prior = 3316K)
ISM Services @ 10:00 AM for August (Est. = 51.0 to 52.4 Prior = 52.6)
Crude Oil Inventories @ 11:00 AM for 09/01 (Est. = n/a, Prior = 3.778M)

Friday
Unemployment Rate @ 8:30 AM for August (Est. = 8.2% to 8.3%, Prior = 8.3%)