The focus is on the central banks. Tomorrow, the German court will rule on the constitutionality of the European Stability Mechanism. Thursday afternoon, the Fed will release the policy conclusion from its two-day meeting starting tomorrow.
Apple (AAPL) is set to unveil its new iPhone tomorrow. The stock has been volatile in recent days and could have an outsized impact on the overall market today and tomorrow.
Consumer credit, as reported yesterday while the market was open, unexpectedly declined for July. The market didn’t pay much attention, and this is a very volatile number on a monthly basis. But the swing the past two months has been large and this could be a signal that consumers are pulling back more than realized.
The July trade balance, reported this morning, was little changed from June and has little market implication.
The near-term outlook continues to hinge heavily on central bank actions. The fundamentals may come back into sharp focus at the end of this month as earnings warnings are likely to accelerate ahead of third quarter earnings reports in October.
MCG Capital (MCGC), which normally has very light options flow, had an opening buyers of 1,100 Mar 5 calls. These calls are in-the-money. It is possible this reflects a stock replacement program as the stock is up roughly 10% in the past few weeks.
In Delphi Automotive (DLPH), there was a buyer of 10,000 Nov 32.5 Calls. This was 150x normal volume.