Stock futures slip after global reports
The ECB President speaks of ongoing downside risks to the eurozone's economic outlook as the central bank cuts rates. China slashes its interest rates again. ADP reports that US job creation grew by 176,000. Jobless claims fall.
By Andrea Tse
Stock futures were slipping Thursday as the markets digested a spate of global economic reports.
Futures for the Dow Jones Industrial Average ($INDU) were down by 45 points at 12,822. S&P 500 ($INX) futures were down by 3 points at 1,365. Futures for the Nasdaq ($COMPX) 100 were falling by 8.5 points to 2,633.
The European Central Bank reduced interest rates to a record low as it tries to prevent the eurozone economy from worsening. ECB President Mario Draghi said in a press conference after the release that risks to the continent's economic outlook are still on the downside.
The ECB's main refinancing rate will be cut by 25 basis points to 0.75%.
The interest rate on the marginal lending facility will be decreased by 25 basis points to 1.5% and the interest rate on the deposit facility will be decreased by 25 basis points to 0%.
Meanwhile, the Bank of England, in an effort to boost the United Kingdom's sagging economy, announced it is raising its asset purchase target to 375 billion pounds, while maintaining its benchmark interest rate at 0.5%, and implying that more stimulus measures are possible in the future.
While it's been widely expected that China would cut interest rates again, the timing of the latest reduction was a surprise to the markets. The country's central bank reduced its one-year deposit rate 0.25 percentage points and one-year lending rate 0.31 percentage points.
The People's Bank of China is allowing banks to lend 30% below the lending rate floor.
Ahead of Friday's big nonfarm payrolls report, Automatic Data Processing reported that employment in the U.S. nonfarm private business sector increased by 176,000 in June from May on a seasonally adjusted basis, which was better than the addition of 105,000 jobs to the U.S. economy that economists surveyed by Thomson Reuters were expecting.
The estimated gain in May from April was revised up slightly to 136,000 from 133,000 initially.
Employment in the private, service-providing sector rose 160,000 in June, according to ADP.
Meantime, the Labor Department reported that initial jobless claims for the week ended June 30 fell 14,000 to 374,000 from the previous week's upwardly revised figure of 388,000. Economists on average expected a fall to 385,000.
The four-week moving average was 385,750, a decrease of 1,500 from the previous week's average of 387,250.
Continuing claims for the week ended June 23 was 3.306 million, an increase of 4,000 from the preceding week's level of 3.302 million.
The Institute for Supply Management posts its June non-manufacturing index at 10 a.m., and the reading is expected to come in at 53 compared with 53.7 in May.
The FTSE in London was rising 0.31% and the DAX in Germany was up 0.17%. Hong Kong's Hang Seng Stock index finished up 0.5%. The Nikkei in Japan closed lower by 0.27%.
August crude oil futures were up 50 cents to $88.16 a barrel. August gold futures were slipping $3.50 to $1,618.30 an ounce.
The benchmark 10-year Treasury was up 8/32, diluting the yield to 1.593%, while the dollar was rising 0.58%, according to the dollar index.
The major U.S. equity indices finished Tuesday's holiday-shortened session with solid gains after data on factory orders in May came in slightly better than expected and June vehicle sales were strong.
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I'm far from a 1%er,and I think the Republican way is far better than the Democrat way.My Daugher was a Democrat until she got a job in the private sector,she was a Captain in the Airforce prior,I would joke around dems vs. repubs and she would get furious with me.Now she finally gets it,she wants to protect what she makes,lower taxes,less government,what a change. I'm a proud daddy.
VF - putting money to some kind of productive purpose instead of none.
Here is the problem. One person's productive purpose is another person's idea of a wasteful purpose. We as a nation at this time can not agree on "productive purpose".
It seems like we could all agree that reducing the deficit for future generations of Americans is a worthwhile goal............ Heck MG....... give us a 100 year payment number....... or even more.... as long as everyone could say........ Sure, lets do it.
Well, that ratio could even be a goal for deficit reduction that even more people could buy into. If everyone agrees we have to do something and the direction is the same ......... no reason not to move forward.........
Hell......... I'm starting to sound like clownshoes.......... LMAO
Re-tog--V.O. water touch of seven up tall please! And keep them coming
Brutus,for the last 30 years I've been listening to politicians telling us its only 6 million for this pork project to his or her district ,5 million for this one and so on and so on.I suppose now with Trillion dollar deficits a billion is the old million.
A few more sloagans Obamajust unveiled today:
"Guns for drug Mexican Drug Lords, they deserve the best we can buy them"!
Vote for Obama, Opaque instead of transparent!
Vote for Obama, the God of Stupidity!
Obama for President! Obama will steal from the middle class to give to his special interest groups!
"Unions are the most cherished people, unlike humans"!
"Unemployment you can count on"!
"Deficits to infinity and beyond"!
"The government sector is hurting, ask the GSA!"
"All my F*** Ups are W's fault!"
"With the Supreme Court giving President Obama's new health care law a green light, federal and state officials are turning to implementation of the law -- a lengthy and massive undertaking still in its early stages, but already costing money and expanding the government.
The Health and Human Services Department "was given a billion dollars implementation money," Republican Rep. Denny Rehberg of Montana said. "That money is gone already on additional bureaucrats and IT programs, computerization for the implementation.""
"The IRS, Health and Human Services and many other agencies will now write thousands of pages of regulations -- an effort well under way:
"There's already 13,000 pages of regulations, and they're not even done yet," Rehberg said.
"It's a delegation of extensive authority from Congress to the Department of Health and Human Services and a lot of boards and commissions and bureaus throughout the bureaucracy," Matt Spalding of the Heritage Foundation said. "We counted about 180 or so.""
VF - 5PM: Actually.. not paying it off is an idea that's gained a lot of steam. Treasury bonds are a valuable investment product, and they go *poof* without a national debt. Public projects need funding in most times. Targeting a lower debt to GDP ratio, certainly. That ratio ever being 0.. no.
VF you must have a number or ratio or something in your head concerning when too much deficit becomes detrimental...... Can you share your thought on that?
Thanks....... for real.
Mirage,didn't really want to go an extra two years,but I will if it gets our deficits down for our children and grandchildren.
Guess I should shake the tree and see if Fatty Cakes wants to come out and play on us, with a few words of wisdom...
Actually me and my BB gun can get him out of the tree with one shot......
We "don't need no stinkin firemen....."
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[BRIEFING.COM] The stock market finished a down week on a cautious note with small caps leading the retreat. The Russell 2000 lost 0.5%, widening its weekly decline to 2.6%, while the S&P 500 shed 0.3%. The benchmark index ended the week lower by 2.7%.
This morning, the market was provided a basis to rebound with the July employment report, which was just right for the policy doves (209K versus Briefing.com consensus 220K). It showed payroll growth that was weaker than expected, ... More
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