Unemployment data delivered a modest boost to investors' economic sentiment, as the U.S. Department of Labor's weekly jobless claims figures dropped slightly. For the week ended September 4, the advance seasonally adjusted claims figure came in at 451,000, down 27,000 from the previous week.
In addition, the Federal Reserve's twice-quarterly Beige Book report found that economic growth continued through the end of the summer, although at a slower rate. The economy has generally been hampered by sclerotic housing and labor markets, and boosted by manufacturing and finance.
"Economic growth at a modest pace was the most common characterization of overall conditions," said the central bank.
Investors may also be reacting positively to President Barack Obama's plans for a combined stimulus and tax-break plan designed to rev up employment and manufacturing activity. Combining tax credits for capital expenditures and research and development with an infrastructure spending bank, the proposed package comes out to about $350 billion.
However, its prospects are doubtful in a pre-election season environment characterized by public wariness surrounding the issue of deficits and a lack of cooperation between the Democratic majority and the Republican minority.
At 9:45 a.m. EST, Dow Jones Industrial Average index futures were up 54 points to 10,380.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.