Futures Dip As Investors Await Data

Futures Dip As Investors Await Data

US stock futures declined Thursday morning. The dip reflected investor caution amid Thursday’s unemployment and factory orders data. Additionally, the monthly US jobs reports will be released on Friday.  

Futures Dip As Investors Await Data
Futures Dip As Investors Await Data

Futures for all three major indices – the Dow, Nasdaq and S&P 500 – dropped 0.1%. The losses also followed Wednesday’s selloff, but futures movement is not necessarily a direct indicator of daily market strength or weakness.

End-of-the-week data to influence stocks
The Labor Department jobless claims for the week ending September 27 indicated an 8,000 job drop to 287,000, according to the Wall Street Journal. Analysts expected that number to increase by 2,000 to 297,000. Next up is a measure of factory orders in August from the US Census. Experts anticipate a 9.5% drop from the previous month.

Economists await Friday’s jobs report for the month of September, which is likely to be the next significant report. Experts forecast new payrolls to increase to 215,000 as opposed to 142,000 in August, with the unemployment rate steady at 6.1%.

Finally, the European Central Bank announced a 2-year asset buying plan in an effort to augment inflation and economic growth, according to Bloomberg. Bank President Mario Draghi’s most recent move continues the stimulus efforts that began in June. European inflation fell to a nearly 5-month low at 0.3%.

Markets to wait it out
The relative lack of major activity will allow economists to think conservatively and see where the market goes, according to Bloomberg. “There may be a bit of a wait-and-see attitude for US markets over the next couple of days,” Veronika Pechlaner, who helps manage roughly $2.3 billion at Ashburton Ltd., told Bloomberg. “The geopolitical background hasn’t been great for US stocks. In the case of small-caps, they re-rated and traded at much higher valuations so investors are asking themselves if it will really get better than this when interest rates start going up.”

Tesla Motors Inc. CEO Elon Musk teased a new car, the Tesla D, and plans to introduce the vehicle next week. As a result, shares in Tesla grew 5.1%

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