After two consecutive days of losses on Wall Street, Wednesday morning’s stock futures have declined. Futures for both the Dow and S&P 500 fell 0.3% while futures for the Nasdaq dipped 0.4%.
Wednesday, October 1, 2014
Futures started the day higher on Tuesday but the market direction did not follow suit.
Futures remained weak even after a report from Automatic Data Processing Inc. and Moody’s Analytics indicated an addition of 213,000 private sector jobs in September, higher than the anticipated 209,000. Investors also await data on the US manufacturing industry for September and construction spending in August, coming out Wednesday morning. Additionally, the Labor Department released its monthly jobs report for September on Friday.
"Until we get the employment data out of the way on Friday, the market is probably going to stay within [a] range," Peter Cardillo, Chief Market Economist at Rockwell Global Capital told the Wall Street Journal.
October could be a strong month for Wall Street
The fourth quarter is historically a bullish period for the stock market, according to Yahoo. On average, indices have advanced by 4% going way back to 1950. During the fourth quarter stocks have been higher 78% of the time.
According to CMT and Yahoo Finance contributor Ryan Detrick, this quarter could be particularly high as it falls during the second year of a Presidential term. Out of all 16 quarters during a 4-year Presidential term since 1950, quarter four of year two has the highest return. If this holds true, this fourth quarter should be the best quarter in four years.
“My advice is [to] be aware that we are in an extremely bullish timeframe and the odds of eventually making new highs and having a solid quarter are pretty strong,” Detrick wrote for Yahoo.
Ebola lands in United States
Dallas hospital officials confirmed the first diagnosis of the Ebola virus in an American hospital, CNN reported. The unidentified man arrived in the US from Liberia and did not show symptoms until a few days after touchdown.
The disease has spread massively through some African nations like Liberia and Sierra Leone, but US health officials are prepared to deal with the presence of the virus in the US.
“It is certainly possible that someone who had contact with this individual could develop Ebola in the coming weeks,” Center for Disease Control Director Dr. Thomas Friedman told CNN. “But there is no doubt in my mind that we will stop it here.”
As public awareness heightens and fears grow, market shares of pharmaceutical companies developing treatments and vaccines could see a significant boost.
Nadex offers peace of mind in volatile markets
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