US stocks fall in a sleepy session ahead of this week’s FOMC meeting, amid a lot of chatter about corrections and tops.
DJIA slips 32 to 9338, S&P 500 loses 3 to 1007, Nasdaq Comp drops 8 to 1992. A mini bull-run at the end smooths some of the rough edges off the session. Big Board volume’s about what you’d expect for August, 5.2B shares changing hands. The dollar gains, as do Treasurys, and crude takes a breather.
We’re not going to get ourselves too worked up about a half-percent pullback, but with the major indexes up about 50% from their March lows, the talk is about what could be an inevitable correction, and maybe some folks decided today was as good as any to lock in some profits.
In today’s video segment, we discuss Maguire Properties, which posted a wide loss on write-downs, as well as the market-correction talk, and the problems down in Jefferson County, Ala.
That Jefferson County situation is bad. Besides being on the verge of the biggest municipal default in history, the county sheriff’s budget was cut, and he’s so strapped for manpower he says he’s thinking about asking the National Guard for help maintaining order.
FOMC’s two-day confab begins tomorrow, with the official communique coming Wednesday. While nothing much is expected out of the FOMC, the Fed always gets the market’s attention. Investors will take the proverbial fine-toothed comb to the statement, looking for any hints as to the Fed’s future monetary path. And while a lot of the focus will be on interest rates, look for hints as to the Fed’s inclinations toward its purchase of Treasury debt.