August plejer at være den værste måned for US-aktier

Before the bell, the Commerce Dept. showed that the core-PCE deflator, which was released with in-line personal income and spending data, rose 0.2% in June. That matched also expectations and was the third straight increase of that magnitude, reflective of a steadying trend and consistent with the Fed's view that inflation will ease in 2007. Be that as it may, the year-over-year increase now at 2.4% -- the largest such increase since a 2.5% rise in April 1995 and further above the Fed's comfort zone of 1.75-2.00%, has left investors wondering just how patient policy makers will be next Tuesday since it takes time for the previous rates hikes to impact the data.

Adding insult to injury, investors didn't get any relief on the inflation front after the prices paid component in the 10:00 ET release of the ISM Index jumped from 76.5% to 78.5% -- the highest level this year, questioning just how soft a landing the economy can actually expect after two years of rate hikes.

The reality that August has been the worst month for stocks over the last 15 years, according to Stock Traders Almanac, is also lending to the lack of enthusiasm for owning equities amid renewed uncertainty with regard to Fed policy.