September 10, 2012-Markets Shaky After Last Weeks Gains

Sentiment on Wall Street has become shaky, as traders pause after the past week's rally that came on the back of an announcement concerning ECB bond buying. Domestic economic data has largely been mixed. This coupled with the 'Operation Twist' program that is yet to run its course may deter the Fed from announcing an outright QE III program. That said, the markets expect the Federal Reserve Chairman Ben Bernanke to take some concrete action to keep the economy from going down the drain. The Dow futures are slipping 14 points, the S&P 500 futures are moving down 2.60 points and the Nasdaq 100 futures are declining 4.75 points. U.S. stocks reversed course in the week ended September 7th, benefiting from European Central Bank action and also hopes of Fed action. For the week ended September 17th, the Dow Industrials added 1.65 percent, while the S&P 500 Index gained 2.22 percent and the Nasdaq Composite moved up 2.27 percent. The FOMC meeting takes the center stage in the unfolding week, as traders look ahead to Bernanke to emulate his counterpart at the European Central Bank. Traders may also watch the Commerce Department's retail sales report for August, the Federal Reserve's industrial production report for August, the weekly jobless claims report and the results of a consumer sentiment survey for September by Reuters and the University of Michigan.