By Steve Goldstein, MarketWatch
Hurricane Dorian was the focus as it bears down on Florida (and possibly Georgia)—and for the markets that could mean bad news for property insurers and reinsurers and good news for home-improvement companies, such as Floor & Decor Holdings /zigman2/quotes/206904436/composite FND -2.41% , Home Depot /zigman2/quotes/208081807/composite HD +2.70% and Lowe’s /zigman2/quotes/205563664/composite LOW +0.56% .
Dell Technologies /zigman2/quotes/203822527/composite DELL +1.38% may advance after reporting better-than-forecast results, while a lowered forecast may pressure retailer Ulta Beauty /zigman2/quotes/210513442/composite ULTA +0.02% . Tesla /zigman2/quotes/203558040/composite TSLA -2.23% was bid higher on the news China will exempt its models from a purchase tax , following Elon Musk’s visit to the country.
Data released Friday showed a surge in consumer spending but tepid growth in personal income. There are still reports to come on Chicago PMI and University of Michigan consumer sentiment.
Chart of the day
August has not been fun for markets, the last two days aside. Even in the wake of what you can call the “fake phone call” rally—CNN quoted White House aides as saying President Trump overstated the level of communication between the U.S. and China—the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.72% has dropped by about 2% during the eighth month of the year. Greg Guenthner of The Rude Awakening says two key sectors, on the edge of a breakdown, are showing some strength. The Dow transports /zigman2/quotes/210598063/realtime DJT -1.27% , shown in the chart above, have tested their May lows, and the Russell 2000 small-cap index /zigman2/quotes/210598147/delayed RUT -1.49% has recovered after closing below its May lows on Tuesday.
“Relative weakness in both small-caps and transports has been a thorn in the market’s side all summer. A little positive momentum here could go a long way in repairing some of the damage inflicted on the markets this month,” he writes.
A Hong Kong activist on his arrest.
Australia has downgraded the outlook for the Great Barrier Reef to “very poor.”
The New York Times reports that President Trump’s personal assistant abruptly resigned for talking to reporters .
Detectorists have found a huge hoard of silver coins dating back to the aftermath of the Battle of Hastings.
Israel has positioned mannequins of soldiers in jeeps along the Lebanon border.
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