News Column

Futures Rebound But Continue To Point To Modestly Lower Open

August 1, 2014

WASHINGTON (Alliance News) - After pointing to continued weakness on Wall Street earlier this morning, stock futures have regained some ground following the release of the monthly jobs report. The major index futures are currently pointing to only a modestly lower open, with the Dow futures down by just 10 points.

The recovery by the futures came following the release of a report from the Labor Department showing that employment rose by less than expected in the month of July.

The report said non-farm payroll employment increased by 209,000 jobs in July after jumping by an upwardly revised 298,000 in June.

Economists had been expecting employment to climb by about 233,000 jobs compared to the increase of 288,000 jobs originally reported for the previous month.

Despite the continued job growth, the unemployment rate unexpectedly edged up to 6.2% in July from a nearly six-year low of 6.1% in June.

With the report also showing only a modest uptick in average hourly earnings, the data eased some of the recent concerns about the outlook for interest rates.

A separate report released by the Commerce Department showed that personal income and spending both increased in line with economist estimates in the month of June.

Not long after the open, traders will be presented with another batch of economic data, including reports on consumer sentiment, manufacturing activity, and construction spending.

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Source: Alliance News

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