1. Real fireworks still to come
As Americans bask in the last holiday of summer, they await Wall Street’s silly season. August may have been tumultuous, but historians say that September and October often provide the year’s most dramatic fireworks. Markets are closed Monday. For now, Chicago investment manager Marshall Front of Front Barnett Associates is telling clients, “High-quality, large-cap stocks, both in the U.S. and globally, have emerged as safe havens.” He sees further volatility for stocks between now and mid-October.
2. Dreamliner update
On Wednesday, high-flying Boeing Co. will provide an update on its new 787 Dreamliner, which begins flight tests at the end of the month. Executives of Chicago-based Boeing will provide a briefing about the heavily hyped new plane, which is due for its first deliveries in May.
3. Book may contain clues
Judging by comments from Federal Reserve Chairman Ben Bernanke, there still are some doubts about whether to lower the overnight lending rate when policy-makers gather in about two weeks. More clues arrive Wednesday, with the Fed’s beige book, a region-by-region economic digest. Be alert for any mention of mortgage defaults or a credit crunch, clues that the Fed is eager to add cash to the economy.
4. Joblessness’ slow climb
The job market continues to percolate. A fresh test comes Friday, with the August employment report. Chicago economist William Hummer expects joblessness to rise a tick, to 4.7 percent, with payrolls growing by 100,000 positions. “The job market isn’t strong enough to keep joblessness from rising, at least slightly,” said Hummer. “Some sectors of the economy, including financial services and the mortgage industry, are slowing.”
5. Detroit’s demise
The economy’s weak link continues to be the auto industry. On Tuesday, Detroit rolls out auto and light-truck sales for August. Analysts say activity in showrooms hasn’t been this slow in nearly 10 years.
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wsluis@tribune.com
