This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Futures Slip as Markets Digest Global Reports


NEW YORK ( TheStreet) -- Stock futures were slipping Thursday as the markets digested a spate of global economic reports.

Futures for the Dow Jones Industrial Average were falling 45 points, or 52.82 points below fair value, at 12,822. Futures for the S&P 500 were down 3 points, or 3.62 points below fair value, at 1365. Futures for the Nasdaq 100 were down 8.5 points, or 7.29 points below fair value, at 2633.

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 to 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, better than the addition of 105,000 jobs to the U.S. economy that economists 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%.

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.

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.


-- Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $79.19 0.00%
GOOG $532.11 0.00%
TSLA $250.80 0.00%
YHOO $42.94 0.00%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs