Stocks Decline As Fed Stimulus Hopes Lose Clout

Stocks Decline As Fed Stimulus Hopes Lose Clout
News

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.”

October crude oil futures were rising 76 cents at $98.02 a barrel and December gold futures were surging $24.20 at $1,664.70 an ounce.

The benchmark 10-year Treasury was up 1/32, diluting the yield to 1.692%. The greenback down 0.13%, according to the dollar index.

In corporate news, HP’s (HPQ) revenue trailed Wall Street analysts’ consensus forecast in the third quarter, weighed down by declining PC and printing sales.

HP lowered its guidance. For fiscal 2012, the company now expects earnings of $4.05 to $4.07 a share, at the low end of its previously provided outlook.

Rambus (RMBS), the Sunnyvale, Calif.-based technology licensing company, said after Wednesday’s close that it plans to lay off 15% of its workforce as part of a restructuring.

Hain Celestial Group (HAIN), the Melville, New York-based natural and organic food and personal care products company, said its British subsidiary has reached a deal to buy Premier Foods’ portfolio of grocery brands and a manufacturing base in the U.K.

Los Angeles-based Guess (GES) posted weaker quarterly results and cut its guidance.

via The Sports Xchange

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Julian Sonny

From the sandy beaches of Hawaii, to the streets of New York: Julian has seen it all. His lifetime of travels has given him a broad scope of knowledge and an eclectic taste unlike any other in the tri-state area. Julian has often been compared to cultural icon, The Rock, because of his unequivocal work ethic and warrior-like stature.

Original Video

Everything You Need To Know About Marijuana

Jesus has risen, but how high did he get? While Easter and 4/20 falling on the same day is most definitely a weird coincidence, it will also highlight a pretty important public opinion on what’s more important: weed or candy eggs? Sto...

More In News

World Connor Toole

Ukranian Man Offers $10k Each For Capture Of Russian Invaders

A Ukrainian politician has put a bounty on the head of Russian mercenaries in an attempt to stymie the neighboring country’s hostile actions in the region. According to The Trumpet, Borys Filatov, the lieutenant governor of Dnipropetrovsk, posted a message to Facebook earlier this week in which he provided a number of incentives for anyone […]

World Sean Levinson

The Flyer About Jews Needing To Register In East Ukraine Is Thankfully Fake

Western intervention in Ukraine seemed like a distinct possibility yesterday when it was reported that the Jewish community in the eastern city of Donetsk, currently occupied by pro-Russian militants, was given leaflets saying that they would be deported if they did not register with what is calling itself the city’s temporary government. But according to […]

World Sean Levinson

The Underwater Search For MH370 Could Cost A Quarter Billion Dollars

An underwater vehicle made by a private American company is currently searching for missing Malaysia Airlines Flight 370. It has come up with nothing after four missions covering nearly 50 square miles of sea. If the US continues employing private companies to search for the plane, it could cost a quarter of a billion dollars. […]

Also On Elite

World

Hero Student Who Tackled The High School Stabber Talks About What Happened (Video)

Local Pittsburgh-area news station WXPI interviewed an 18-year-old high school student who helped immobilize the 16-year-old who stabbed 21 people at Franklin Regional High School yesterday. Ian Griffith assisted Assistant Principal Sam King in tackling and disarming Alex Hribal, who is being charged as an adult with four counts of attempted homicide, 21 counts of aggravated […]

Wellness

No Passport? 6 Means Of Self-Discovery That Don’t Involve Traveling

Many people correlate self-discovery and revelation with international travel because of the reflective state in which it puts travelers. The fact that many people do not have the financial means to globetrot can make emphasis on self-discovery through international travel seem elitist and unnecessary. But, self-discovery is important and many times, does not require an […]

World

Only In America: US Postal Worker Was Selling Weed From His Postal Truck

It doesn’t get more awesome than this! If the 29-year-old US Postal Service worker who was caught selling weed from his mail truck in Long Island on Thursday doesn’t make you proud to be American, then nothing will. According to Newsday, Jimmy Henry was charged with unlawful possession of marijuana and criminal sale after police […]