It will be hard to repeat yesterday’s performance. After solid earnings figures from a number of banks and financial companies helped stoke optimism, the markets looked again to economic fundamentals and didn’t like what they saw.
Treasury Secretary Timothy Geithner helped set the pessimistic tone, saying on ABC’s “Good Morning America” that unemployment may rise in the coming months, as a result of workers moving back into the labor force.
Unemployment figures only measure those who are actively seeking work; those who have given up are not included in the headline figure.
On Tuesday Morning, Nasdaq 100 futures contracts were precisely flat before the open, while Standard & Poors 500 futures were down 2.3 points to 1,119.50. Dow Jones Industrial Average index futures slipped 24 points to 10,593.
Consumer spending also wavered,with weak employment figures translating into spending doldrums. Consumer confidence slipped in July, as figures from a Thomson Reuters/University of Michigan survey showed the confidence index losing over 8 points to 76.8 in July.
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