Tuesday, July 22, 2014

US futures surrender gains on weak jobs report

February 16. 2013 10:36PM

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(AP) A weaker-than-expected jobs report has cost U.S. stock futures some of their early morning gains.

Dow Jones industrial futures are up 19 points at 13,294. The broader S&P 500 futures are up 3 points at 1,434. Nasdaq futures are up 2 points at 2,827.

Dow futures had been up about 40 points before the report. On Thursday, the S&P soared to its highest level since January 2008, while the Dow hit its highest mark since December 2007.

The Friday morning jobs report showed the U.S. economy added 96,000 jobs in August. The unemployment rate fell to 8.1 percent from 8.3 percent in July, but only because more people gave up looking for work.

Computer chip giant Intel Corp. also dealt the market a blow by cutting its revenue outlook because of weak demand. That move could renew concerns about the economy.

Overseas, a bond-buying plan from the European Central Bank continued to buoy financial markets.

Financial markets have reacted positively to the ECB's program, unveiled Thursday by ECB president Mario Draghi, because it lowers the possibility that the euro currency union will break up, at least in the near-term. Stocks have risen strongly, as has the euro and the price of oil, while the costs of borrowing for countries like Spain and Italy have become more manageable.

In Europe, Germany's DAX was up 1 percent Friday at 7,240, while the CAC-40 in France rose 1.3 percent to 3,555. The FTSE 100 index of leading British shares was 0.3 percent higher at 5,797.

In Asia, Japan's Nikkei 225 index surged 2.2 percent to close at 8,871.65. Hong Kong's Hang Seng jumped 3.1 percent to 19,802.16 its biggest one-day percentage gain since Jan. 17.

South Korea's Kospi bolted up 2.6 percent to 1,929.58. Australia's S&P/ASX 200 rose 0.3 percent to 4,325.80.

Mainland Chinese shares soared. The benchmark Shanghai Composite Index jumped 3.7 percent to 2,127.76 and the smaller Shenzhen Composite Index added 3.8 percent to 891.53.

Oil prices continued to rebound alongside equities. Benchmark oil for October delivery was up 35 cents to $95.88 a barrel in electronic trading on the New York Mercantile Exchange.

Associated Press

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