This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: The Waiting Game

Stocks in this article: P VRA DY SPY ^GSPC ^IXIC ^DJI

NEW YORK ( TheStreet) -- The waiting game continues on Wall Street.

Tuesday was another ho-hum, low volume session as the major U.S. equity averages continue to digest the gains of the past two months and search for another positive catalyst to justify a move above the pre-financial crisis highs the S&P 500 briefly breached in intraday action a week ago.

Scott Wren, senior equity strategist at Wells Fargo, offered up this description of the current mood in the markets late Tuesday.

"As the summer comes to an end, many investors are wondering what the rest of the year will bring," he wrote. "Most are anxious and more than a bit nervous. Others have been lulled to sleep by low stock trading volumes and a lack of any meaningful market movement in recent weeks."

Wren cautioned investors against getting too complacent though, pointing to some major happenings on the near-term horizon, namely the European Central Bank's next monetary policy meeting on Sept. 6 and the August U.S. jobs reports set for release on Sept. 7, as bearing close attention, saying "these events have the potential to rile the U.S. stock market" if their outcomes fall short of investor hopes.

"The market is anticipating that the ECB will be in the market buying the sovereign debt of Spain and Italy in the near future," he said. "Investors are looking for further hints as to the timing and are hoping that something will be announced beyond just a cut in the overnight lending rate."

If that doesn't come to pass, look out. Of the jobs report, Wren said market expectations are low so a negative surprise, if it happens, shouldn't be all that big a deal this time around. Europe is simply a bigger concern right now.

Further out, Sept. 12 is the next key date, according to Wren. Not only will the Federal Reserve be starting its next policy meeting, but there are two events in Europe to watch closely: Germany's constitutional court is slated to rule on whether the country can participate in a permanent eurozone bailout fund and the Dutch are holding elections. Wren thinks the ECB could hold off announcing any sovereign debt purchase plans until the German court ruling is in, and notes the eurozone also needs the Netherlands to participate in its bailout plans.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs