Weak Jobs Report, Inflation Concerns Putting Markets In A Cautious Mood To Start Short Week

Weak Jobs Report, Inflation Concerns Putting Markets In A Cautious Mood To Start Short Week

The trading week is off to a sort of "delayed dog days of summer" start. Investors might want to be cautious, with a relatively quiet earnings week and a Friday inflation report as the sole "big number" on the calendar. A lack of an obvious catalyst could make for a volatile week, and despite a flat start to U. S. markets, the Cboe Volatility Index (VIX) starts the day a good bit higher. Overseas markets are mixed, except Asia where China reported higher than expected exports in August. Despite the jobs report Friday (see more below), trading volume remained low that session, and has been averaging on the low side for a few weeks. That's not too surprising, considering the time of year. Perhaps we'll see it tick up again this week as the holiday and summer vacations end. Another thing ending is enhanced U. S. unemployment benefits, which expired over the weekend. It's unclear if this might encourage people who've held off returning to work to go out and test the job market again. If that's the case, maybe it could help businesses resolve some of the shortages and service issues many have had recently. Another reason there might