Get inside information from the president and you will probably lose half your money. If you get it from the chairman of the board, you will lose all your money — Jim Roger

The major indexes (S&P500, Dow Jones & Nasdaq) closed below the 50-SMA and 200-SMA.

1. New Jobless Claims Hit 9-Month High; Factory Activity Falls — New claims for jobless benefits rose by 12,000 in the week ending Aug. 14 to 500,000, the fourth gain in the last five weeks and the highest since last November; Mid-Atlantic manufacturing activity shrank in August;
2. Germany lifts forecast — Germany raised the growth outlook for its economy to +3% for the year, up from a previous estimate of +1.9%.
3. Consumer and wholesale prices rose in July, their first gains since March, the Labor Department said over the past week.

4. Rep. Barney Frank says bankrupt government mortgage giants Fannie Mae and Freddie Mac “should be abolished.”
5. Congressional Budget Office estimated The federal budget deficit will surpass $1.3 trillion in 2010 and is expected to be the second largest shortfall in the past 65 years.
6. ECB mulls exit timing — The ECB will likely consider in Q1 2011 the timing for withdrawing its emergency lending measures.

The week ahead — economic data:
1. 8/24 — Existing Home Sales
2. 8/25 — Adv Durable Goods; New Home Sales
3. 8/26 — Initial Jobless Claims;
4. 8/27 — Q2 GDP;