Entering text into the input field will update the search result below

Market Perspective For September 29, 2014

Sep. 29, 2014 3:59 PM ETWBA, STZ
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Stocks started off in the wrong direction Monday morning after protests in Hong Kong rattled the financial market. The Hang Seng fell 1.90 percent on Monday. China's National Day is on Wednesday and that could prompt bigger protest crowds. At least in the near term, these protests could weigh heavily on Hong Kong's stock market. European shares also opened lower in sympathy with losses from Hong Kong.

The key chart to watch this week may be the U.S. dollar index. The rising greenback has socked commodities and stock markets around the globe. Our domestic market has held up well, but this cannot continue indefinitely if the rising dollar continues to beat up the rest of the globe. A reversal is overdue as the U.S. dollar index has been overbought since mid-August. The dollar index has also moved higher for 11 straight weeks, the best win streak since its inception, 41 years ago. The move last week was an acceleration of the trend, which tends to come before a reversal as well.

Data won't be heavy this week, but investors will focus on the manufacturing PMI numbers from around the globe, with the U.S., Europe and China drawing the most attention. Aside from those numbers, the unemployment rate for September is the other big domestic item. From China, there will be preliminary September home price data from private firms out this week. This will be an important data point for commodities such as copper and iron ore.

We are in a lull period before the third quarter earnings season kicks off. Walgreens (WAG) headlines the earnings reports this week along with Constellation Brands (STZ).

Analyst's Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.