The big report tomorrow will be the Durable Goods Orders report. Could use a good one to keep the upside going. But once that's cleared, we'll get the 2nd estimate on Q2 GDP on Friday. But what may be even more important, will take place on Thursday: Fed Chairman Ben Bernanke will give a speech on the economy in Jacksom Hole, WY, where analysts are hoping he may say something positive about a possible QE3 program.
Three big economic news days and possibly three big market days as well.
NEW YORK (AP) -- Moody's Investors Service on Tuesday downgraded its rating on Japan's debt.
The agency said it lowered the rating because of Japan's large budget deficits and growing government debt.
Moody's cut Japan's government bond rating to Aa3 from Aa2. The new rating is three notches below Moody's top Aaa rating. It said the outlook for the rating is stable.
The downgrade puts Moody's Japan rating in line with other major agencies. Both Standard & Poor's and Fitch rate Japan AA-, three notches below their top AAA ratings.
In May, Moody's warned it could downgrade Japan after the world's No. 3 economy slipped back into recession in the first quarter due to tumbling output and exports following the March 11 earthquake and tsunami.
Frequent administration changes have prevented Japan's government from adopting effective long-term economic and fiscal policies, Moody's said. The country's economic problems were compounded by the natural disaster and the subsequent nuclear crisis.
"These developments further hamper the economy's ability to achieve a growth rate strong enough to steadily reduce the budget deficit," Moody's said.
Moody's has maintained its AAA rating on the United States. Standard & Poor's earlier this month took the unprecedented step of downgrading the U.S., citing its large deficits and political gridlock.
U.S. Treasurys edged higher in European trading on Wednesday, with Wall Street set to open lower, though moves were likely to be limited ahead of Friday's speech by Federal Reserve Chairman Ben Bernanke.