What happened this week

Major indices closed around -1% on Friday before the long weekend, making in the third consecutive week of declines. Many investors speculated that a further reduction in equity positions may be expected to weather the volatile trading expected for the week following Labor Day. Credit Suisse’s global chief investment officer, Michael Strobaek, said, “Markets had factored in too much hope and not enough economic realities.

The best news that came out on Friday was the unemployment rate increased to 3.7% in August from 3.5% in the prior month. The increase is largely attributed to the labor force growing by 786,000 people, a bigger labor supply is good for employers and may help reduce inflation. The U.S. labor market added 315,000 jobs in August, hitting a 20-month streak in strong job growth that’s powering the economy.

Over the weekend the Russian energy giant Gazprom missed its Saturday deadline and indefinitely extended its gas cuts to Europe. The state owned energy company cited urgent maintenance was behind its extension and did not provide a future date when it intends to reopen. The Nord Stream 1 Pipeline, distributes natural gas to Europe through Germany.

Bed Bath and Beyond confirmed on Sunday that its Chief Financial Officer Gustavo Arnal died over the weekend, after police had said earlier that Arnal fell to his death. Investigators believe Arnal’s fall was intentional, Arnal was the subject of a class action lawsuit alleging that he and majority shareholder, Gamestop Chairman Ryan Cohen, had artificially inflated the company’s value in a "pump and dump" scheme. Arnal died days after the company announced plans to close 150 stores, cut employees by 20% and add more than $500 million in new financing. The cost-cutting measures come as Bed Bath’s core business continues to struggle.

Looking ahead at the short trading week:

Mon Sept 5th: LABOR DAY: MARKETS CLOSED

Wed Sept 7th: International Trade Balance
Fed Beige Book

Thurs Sept 8th: Jobless Claims

Editor’s note

We would like to announce the arrival of Miriam Isabel Rodriguez, who was born on Wednesday August 31 to Claudia and her husband Israel. Mother and child are both well. We thank God for this miracle.