The stock market's rally continued in the absence of any significant headlines. Investors are betting that Federal Reserve Chairman Janet Yellen will keep her dovish tone when she speaks in Jackson Hole, Wyoming, tomorrow morning.
Financials were showing strength today on news that Bank of America (BAC) finalized a $17 billion settlement with the U.S. government. Noticeably absent from the rally today were previous market leaders the transports and the biotechs.
Geopolitical risk remains in the background. Israel scored a win after killing three senior Hamas commanders in a predawn airstrike today.
The U.S. is said to be considering sending troops to Iraq while American fighter jets continue airstrikes against Islamic State terrorists. The idea to send in troops follows the recent beheading of an American journalist by ISIS. It's important to note we're not talking a significant number of American troops. Estimates suggest fewer than 300 soldiers.
Meanwhile the conflict between Russia and Ukraine has cooled a bit. The Russian convoy of 260 trucks supposedly carrying humanitarian aid has been stuck at the Ukraine border for days. Ukraine border guards began inspecting the trucks today. Russian President Putin and Ukraine President Poroshenko are supposed to meet next Tuesday. Hopefully the region stays quiet until then.
We are not adding any new trades tonight. After another week of gains stocks could see some profit taking ahead of the weekend. A lot of market participants are on vacation so volume will likely be low, which could allow for unexpected volatility following Yellen's speech.