Futures Dip After Bernanke Speaks
NEW YORK (TheStreet) -- U.S. stock futures pointed to a weaker open Monday following comments from Federal Reserve Chairman Ben Bernanke suggesting that the weak labor market could necessitate additional bond purchases by the Fed and as concerns about eurozone stability continued to weigh.
Futures for the Dow Jones Industrial Average were down by 24 points, or 32 points below fair value, at 11,340. Futures for the S&P 500 were 5 points lower, or 5 points below fair value, at 1219, and Nasdaq futures were off by 4 points, or 7 points below fair value.
Stocks finished ahead Friday despite a disappointing November jobs report that saw the unemployment rate rose to 9.8%.On Monday, the euro lost ground against the dollar falling to $1.3289 from $1.3387 as European Union finance ministers met to discuss continuing efforts to address eurozone weakness. The FTSE in London was up by 0.3% and the DAX in Frankfurt was ahead by 0.1%. Hong Kong's Hang Seng shed 0.4% and Japan's Nikkei dropped 0.1%. Bernanke presented a dour view of the U.S. economy in an interview on CBS' "60 Minutes" over the weekend, saying that "it could be four, five years before we are back to a more normal unemployment rate, somewhere in the vicinity of say 5% or 6%." Bernanke also said an expansion of the central bank's $600 billion bond purchase program was a "possibility" that would depend on the plan's efficacy and inflation, which Bernanke said will not rise above 2% because of the Fed's careful monitoring of the situation. There are no economic reports scheduled for release during Monday's session.
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