Stock futures dip after dramatic gains
NEW YORK — Stock futures dipped today as investors pause after a big two-day rally to prepare for key reports on the jobs market and retail sales.
High unemployment and slow growth in consumer spending have been the biggest impediments to a strong, sustained recovery. So today’s weekly government report on initial jobless claims and retailers’ reports on monthly sales will be closely watched to see if recent trends reverse.
Disappointing jobs reports have been piling up and helped drive stocks lower in recent weeks. Continued high unemployment has dragged down consumer confidence, which in turn has slowed spending. Consumer spending accounts for the bulk of economic activity. Without a rebound in jobs and sales, the economy is likely to continue to post only modest growth.
Economists predict initial claims for unemployment benefits dropped last week, but not enough to signal employers are significantly ramping up hiring. Initial claims likely fell to 465,000 last week from 472,000 a week earlier, according to economists polled by Thomson Reuters. The Labor Department report is due out at 8:30 a.m. EDT.
Overseas markets rallied after the International Monetary Fund raised its world growth estimate for the year to 4.6 percent from 4.1 percent. The climb also comes before the European Central Bank wraps up a meeting where it is expected to discuss the strength of the banking sector in Europe.
Ahead of the opening bell, Dow Jones industrial average futures fell 8, or 0.1 percent, to 9,972. Standard & Poor’s 500 index futures fell 1.80, or 0.2 percent, to 1,057.50, while Nasdaq 100 index futures dropped 3.50, or 0.2 percent, to 1,786.00.
The Dow jumped back above 10,000 yesterday after soaring 275 points. It was the second straight day of gains and the first back-to-back advance since the middle of June. Traders say the recent gains, which came after seven straight days of declines, were not tied to any one particular catalyst. Instead some investors jumped into the market thinking prices had been beaten down too much in the past couple of weeks.
Meanwhile, bond prices rose slightly today. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.98 percent from 2.99 percent late yesterday.
The euro rose to $1.2646, its highest level since May. The common currency used by 16 European countries has been battered in recent months by worries that the continent’s economy would grind to a halt because of mounting sovereign debt in countries like Greece, Spain and Portugal.
Overseas, Britain’s FTSE 100 rose 1.1 percent, Germany’s DAX index rose 0.3 percent, and France’s CAC-40 gained 1.1 percent. Japan’s Nikkei stock average jumped 2.8 percent.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- DAVID DALLAS: Tax slasher productions comes to Mississippi
- Status of some bills in the Mississippi Legislature
- Proposed ammo ban empties shelves
- Locker doors opening for Clinton inventor after ‘Shark Tank’
- BILL CRAWFORD: Gunn steals tax cut spotlight
- Columbus-built Airbus gets FAA airworthiness approval
- Hattiesburg wastewater treatment system could cost $152M
- Bill would make only 1 hospital follow open-meetings act
- Olive Branch votes to issue $8 million in bonds