Balancing on the Wire

Stocks were little changed early Wednesday as a report showing the U.S. economy's growth essentially as expected in the second quarter left investors treading water.
The Dow Jones Industrial Average was up 4 points at 11,374, and the S&P 500 was fractionally higher at 1305 . The Nasdaq Composite was down 1 point to 2171.
A busy week for data continued with the Commerce Department saying the economy grew at a 2.9% annual pace last quarter. The report was the second of three that will be issued on the second quarter, and it exceeded the advance reading of 2.5%. Economists had expected an upward revision to 3%.
Later, traders will have to pay attention to a speech from the president of the Dallas Federal Reserve, Richard Fisher. Fisher, who has developed a reputation for roiling markets with his blunt assessments of the economy, has already indicated that he will "talk at length about inflation" during his presentation in Dallas.

Reports will be out Thursday on chain-store sales, personal income and spending, factory orders and initial jobless claims, as well as the Chicago Purchasing Manager's Index. August nonfarm payrolls data, the Institute for Supply Management's manufacturing index and auto sales are on tap Friday.

Everything seems to be changing, the markets instability is a great oportunity for traders as big gains can be around the corner. Don´t rush, Middle East is a ticking bomb, Hurricane Season is on the way and economic guidelines in the U.S. are currently no more than a Pandora´s Box. Only the best players will sense the next move on a blurry chessboard as he moves throught uncertain times.

Other Markets

Treasuries were unchanged across the board, with the benchmark 10-year note yielding 4.78%.

The euro was flat against the dollar, and the greenback crept higher on the Japanese yen.

Crude oil futures Wednesday were rising 52 cents to $70.23 a barrel in electronic trading a day ahead of the deadline for Iran to respond to a United Nations attempt to get the nation to suspend its nuclear program. Tehran's leaders have repeatedly said they have no plans to end uranium enrichment.

Tropical Storm Ernesto, which a few days ago was seen as a threat to the petroleum operations in the Gulf of Mexico, made landfall in Florida overnight. The storm, which is about 75 miles southwest of West Palm Beach, continues on a northern track toward South Carolina.

Later, the Energy Department will release the weekly oil statistics that are expected to show declining crude and gasoline inventories.

Extracts from Article

by Robert Holmes

TheStreet.com Staff Reporter