Dow Futures Soar Ahead of Payroll Data

LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open up by 1.22% this morning, while the S&P 500 (SNPINDEX: ^GSPC  ) may open 0.8% higher. CNN's Fear & Greed Index has returned to "fear" territory and is poised to start the day at 31, up from Wednesday's close of 25.

After yesterday's strong gains, European markets were more cautious this morning ahead of today's nonfarm payrolls report. Financial and consumer goods stocks were among the biggest gainers. As of 7:50 a.m. EDT, the FTSE 100 is up 0.31%, the DAX is down 0.22%, and France's CAC 40 is down 0.31%. German markets edged lower after new data showed that industrial orders fell by 1.3% in May, driven by a 2% fall in domestic demand, while coalition government negotiations continue in Portugal after the recent resignation of two senior ministers. In Greece, negotiations continue between the government and International Monetary Fund officials regarding the conditions required for Greece to receive its next bailout payment. In Asia, most markets closed higher this morning, with Japan's Nikkei 225 posting a 2.1% gain and the Hong Kong Hang Seng Index closing up by 1.9%.

Today's U.S. trading is likely to be dominated by the nonfarm payrolls report, which is due at 8:30 a.m. EDT. Consensus forecasts suggest that about 155,000 new jobs may have been created in June, compared to 175,000 in May, which would leave the unemployment rate down slightly to 7.5% from 7.6% in May. U.S. investors returning to work after yesterday's holiday may also be encouraged by yesterday's comments from European Central Bank President Mario Draghi, who said low interest rates were likely to continue for an "extended period" -- a comment which helped the FTSE 100 close up by more than 3% yesterday.

Corporate news is thin today, although defense contractor GenCorp is due to update the markets during the day. However, several major stocks have advanced strongly during premarket trading, including Tesla, which is up 2.3%. Citigroup, JPMorgan Chase, and Bank of America are all more than 1% higher in early trading, while Genuine Parts Company has edged higher.

Finally, let's not forget that the Dow's daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, "The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions." If you, like Buffett, are convinced of the long-term power of the Dow, you should read "5 Stocks To Retire On." Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2523850, ~/Articles/ArticleHandler.aspx, 10/20/2014 7:18:29 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement