Stock Futures Rise on Fed Optimism
NEW YORK (TheStreet) -- Stock futures were slumping Thursday as optimism about the potential for more accommodation from the Federal Reserve was muted by heightened concerns about global growth and a jump in jobless claims numbers.
Futures for the Dow Jones Industrial Average were falling 14 points, or 7.76 points below fair value, at 13,142. Futures for the S&P 500 were down 2.3 points, or 1.24 points below fair value, at 1410. Futures for the Nasdaq 100 were off 4.25 points, or 4.92 points below fair value, 2777.
The Labor Department reported that initial jobless claims for the week ended Aug. 18 rose 4,000 to 372,000, spiking to a one-month high, from the previous week's upwardly revised figure of 368,000. Economists on average thought that claims would total 365,000. The four-week moving average is now 368,000, an increase of 3,750 from the previous week's average of 364,250.
Continuing claims for the week ended Aug. 11 rose 4,000 to 3.317 million, compared with the expected 3.298 million.
The Census Bureau releases new home sales figures for July at 10 a.m. ET. The consensus view among economists is that sales rose to a seasonally adjusted annual rate of 368,000 last month from 350,000.
The read on the Federal Housing Finance Agency house price index for June is also slated for 10 a.m.
The FTSE in London was paring gains, up 0.21%, and the DAX in Germany was retreating from positive territory, lower by 0.43%. Markit Economics said Thursday that output declined in both the manufacturing and service sectors of the eurozone for the seventh straight month in August.
Meanwhile, Markit and HSBC said that the flash read on China's manufacturing purchasing managers' index fell to a nine-month low in August.
Earlier, the Hong Kong Hang Seng index finished up by 1.23% and the Nikkei in Japan closed up by 0.51% with the help of global stimulus optimism.
Stocks got a boost late Wednesday after the minutes of the latest Federal Reserve policy meeting showed growing support for additional stimulus "fairly soon."