News Column

Futures Pointing To Substantially Lower Open On Wall Street

July 10, 2014

WASHINGTON (Alliance News) - Stocks are likely to come under pressure in early trading on Thursday, offsetting the moderate strength seen in the previous session. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 165 points.

Renewed concerns about the financial situation in Europe may contribute to an early sell-off on Wall Street after helping to drag European stocks sharply lower.

News that the parent company of Portugal'sBanco Espirito Santo has missed short-term debt payments has led to the latest worries despite assurances that the bank is protected.

Additionally, the futures saw further downside following the release of a report from the Labor Department showing an unexpected drop in initial jobless claims in the week ended July 5th.

The report said initial jobless claims fell to 304,000, a decrease of 11,000 from the previous week's unrevised level of 315,000.

The modest decrease came as a surprise to economists, who had expected claims to come in unchanged compared to the previous week.

While the data represents another upbeat sign for the labor market following last week's strong monthly jobs report, traders seem increasingly concerned about the prospect of higher interest rates.

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Source: Alliance News

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