NEW YORK — Stock futures rose today as investors anticipate fresh reports will signal the economy continues to grow, albeit slowly.
Economic reports in recent days have indicated the economy is growing at a tepid pace, but they have been enough to reassure investors that the economy isn’t falling back into recession. That comes after weeks of more discouraging reports on the economy, which led investors to worry about fears of another recession.
Reports today are expected to show weekly claims for unemployment benefits fell slightly. Another report will likely paint a more upbeat picture about future economic expansion as well.
Ahead of the opening bell, Dow Jones industrial average futures rose 47, or 0.5 percent, to 10,399. Standard & Poor’s 500 index futures rose 5.60, or 0.5 percent, to 1,092.30, while Nasdaq 100 index futures rose 7.25, or 0.4 percent, to 1,844.00.
The Dow has risen the past two days, climbing 1.1 percent during that stretch.
Volume has been particularly light in recent weeks, even by summer standards, meaning many investors are still uncertain about the direction of the economy. If economic reports over the coming months continues to show the economy is growing and a second recession is not likely to occur, it could bring many investors back into the stock market.
The biggest report of the day is likely to be the weekly report on unemployment benefits. Economists polled by Thomson Reuters predict initial claims for jobless benefits fell by 8,000 last week to 476,000. Claims would still be at levels considered too high to indicate broad private sector hiring, but it would reverse a recent trend of increasing claims.
The Labor Department report is due out at 8:30 a.m. EDT (1230 GMT).
High unemployment is considered the biggest hurdle to a stronger recovery because people worried about jobs have scaled back their spending. Consumer spending accounts for the bulk of the country’s economic activity.
Another report is expected to show a gauge of future economic activity rose in July after falling a month earlier. The Conference Board’s index of leading economic indicators likely rose 0.2 percent last month.
The index tries to predict economic activity over the next three to six months, so a rise in the index would indicate the economy is likely to grow during the second half of the year.
The report is due out at 10 a.m. EDT.
Bond prices dipped as investors moved into stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.67 percent from 2.64 percent late yesterday.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info