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Dog days could bite market in August

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What could derail markets next month?

The Brexit bounce back that lifted stocks in July is unlikely to carry into August, and markets will be put to the test early on — by global manufacturing data Monday, Friday's U.S. jobs report and another big earnings wave.

The closed out the month of July on Friday at 2,173, within points of its all-time high.

But August is not a great time for stocks historically, and over the past 20 years, the Dow has performed worse then on average than during any other month. According to Bespoke, the Dow averaged an August decline of 1.3 percent but was positive 55 percent of the time.

Stocks were sharply higher for the month of July, rallying with world equities, which had sold off after the U.K. vote to leave the European Union in late June. The S&P 500 was up 3.6 percent, while the Dow was up 2.8 percent for the month to 18,432. The Nasdaq rose nearly 7 percent to 5,162.