It looks like the markets are set for day four of the summer snooze fest. Dow futures are down about 20 points in pre-opening trading and bond prices are lower.
As expected, the European Central Bank did not change policy at the meeting today. Mario Draghi has just started his post-meeting press conference. Draghi is expected to hint at future changes to the securities purchase program. The ECB is simply running out of bonds to buy. There is no reason for Mario to panic. The post-Brexit vote anecdotal economic reports seem to indicate that the vote had no impact on the European economy.
Weekly Jobless Claims were close to unchanged at 253k. Later this morning Existing Home Sales will be released, but this is not a market mover.
A Good Theatre
The Republican Convention concludes tonight, and it’s been a peaceful affair for the most part. Certainly the highlight so far came last night with Ted Cruz’s unspoken dis of Donald Trump. It made for good theater, and it also gave political pundits something to chew on. But the fact is that nothing has come out of this convention that will change any perceptions about the Republican candidate. Trump speaks tonight. If he opts to go off script, as he usually does, you might plan for a long evening should you decide to watch.
If today ends up as dull as the first three days of this week, traders will have a lot of pent up energy to expend tomorrow. There are no economic releases tomorrow, but perhaps traders can find something to ignite the markets.
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Opening Market Rates
2-year is .72
5-year is 1.15%
10-year is down 6/32s to yield 1.59%
30-year is down 17/32s to yield 2.325%
Dwight Johnston is the chief economist of the California and Nevada Credit Union Leagues and president of Dwight Johnston Economics. He is the author of a popular commentary site and is a frequent speaker at credit union board planning sessions and industry conferences.