Market Insider

Wary of 'dangerous cocktail,' traders watch data

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Volatile stock market pattern likely to continue

With an eye on the dollar and rates, traders are watching pending home sales and weekly jobless claims data Thursday for what they may say about the economy—and therefore the Fed.

Weekly jobless claims, at 8:30 a.m. ET, are expected at 275,000, up slightly from last week's 274,000. Pending home sales are expected to gain 0.9 percent, when reported at 10 a.m. ET. In a market void of major reports, all data has become a metric to measure the economy by, as a trend of strengthening after weeks of surprising weakness could signal the Fed would move sooner to raise interest rates.

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"The dollar and yields are the big driver, and a lot of that's driven by perception of monetary policy and economic data," said Art Hogan, chief market strategist at Wunderlich Securities.