Stock Futures Fall On Mixed Economic Data
The US stock market futures slid incrementally Thursday morning, Market Watch reported. The Nasdaq and S&P 500 both fell 0.3%, while the Nasdaq slipped 0.2%. Today’s varied data on the US economy had a detrimental effect on the market. Futures movement does not necessarily predict the day’s trading activity as other factors arise throughout the day.
Thursday, September 25, 2014 - 00:00
“There is uncertainty about the strength of the recovery, the trend in inflation, the global environment … and how well we will absorb all of this with higher yields,” Steven Wieting, global chief investment strategist at Citi Private Bank, told the Wall Street journal.
Jobless claims fall short of expectations
A weekly Labor Department survey of US unemployment declarations revealed a 12,000-claim rise during the week ending September 20 from the prior week, according to Bloomberg. The number is 3,000 short of the median prediction from a Bloomberg survey of analysts, as companies are firing less and hiring more.
While the data is positive, significant wage gains would boost the economy even further. Nevertheless, experts are pleased with the less-than-forecast rise.
“This is all good news,” Ray Stone, managing director at Stone & McCarthy Research Associates in Princeton, New Jersey, told Bloomberg. “The labor market is doing pretty good.”
Durable goods orders fall in August
Overall numbers for new orders of durable manufactured goods – products expected to last three years or more – dipped 18.2% in August compared to July, the Wall Street Journal reported. A survey of analysts predicted a 17.5% drop.
However, the data was skewed by a 74.3% decline in nonmilitary planes and parts, per the Commerce Department. The volatile sector jumped 315.6% in July, so it is not necessarily a good indicator of the industry’s overall health. Car and truck orders also dipped 6.4% in August.
Aside from commerce products, other durable goods orders gained 0.7% last month following a 0.5% decline in July. Despite the total orders numbers, some economists are encouraged by individual sectors’ advancement.
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