Economic Optimism Curbs Indices' Slump
Two days of slumping among US stock indexes could change today amid optimism about growth and development in the US.
Thursday, June 26, 2014
Fewer Americans applied for jobless claims last week, the Associated Press reports. The US Labor Department said unemployment figures fell by 2,000 to amount to 312,000. That demonstrates employers did not navigate rough economic waters earlier this year by reducing workforces.
Factoring this in, just after 10 a.m. in New York, the Nasdaq had moderately dropped 0.6%, a loss of 26.23 points to 4,354.3; the S&P 500 rose 0.62%, a rise of 12.19 points to 1,947.46; and the Dow fell 0.72%, a loss of 121.04 points to 16,746.47.
Factory production, car sales, firm order also rise
Additional data indicates the economy is becoming healthier – production at factories is climbing, sales of cars touched its top level in nine years last month, and businesses are increasingly ordering tools, devices and additional equipment.
That uplifting data is particularly refreshing after the US Department of Commerce released data earlier this week stating gross domestic product in the world's largest economy slipped during the first quarter of the year. But, as the second quarter closes early next week, prospects are high for stronger GDP data during the April-to-June period. Forecasts are healthy for second-half data, too.
Personal spending, income moderately rise
Personal spending in the US edged up 0.2% last month, falling slightly short of the projected rise of 0.4%, according to Investing.com. Data about consumer spending is key because it reflects the status of growth in the US as the metric is about 66% of economic activity. Personal income edged up last month as compared to the month prior. Checking in at 0.3% in April, the data registered at 0.4% in May.
Russian leader's overtures bode well
Markets also were calmer on Thursday amid efforts by the leader of Russia to arrive at a peaceful resolution in the conflict with Ukraine. Bloomberg reports the US and the European Union are less likely to implement additional economic sanctions. President Vladimir Putin earlier this week endorsed a ceasefire proposed by President Petro Poroshenko and on Wednesday Russian political leaders stripped Putin's right to order invasions, per Putin's solicitation on Tuesday.
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