Today it was Consumer Confidence that failed to inspire much market movement in the face of numerous other factors. Tomorrow, Durable Goods will try for the same thing.
The other players in this drama continue to be developments out of the EU, the quarter-end position squaring in underlying markets, and of course the 1pm auction of 5yr Treasury notes.
Bernanke will also speak at 5pm, but that’s more of a market mover for Thursday as opposed to tomorrow. Even so, we think the focus is largely on that we cannot see. Accounts are working behind the scenes to reallocate portfolios for the coming quarter as well as square up positions ahead of the end end of Q3.
That’s the kind of stuff that doesn’t make for very good headline news on CNBC. So don’t be surprised if you continue to hear about Europe et. al. It’s not that those things aren’t moving markets too, just that there are big, behind-the-scenes movers right now, and they should be out of the picture by next week.