Manufacturing activity measured by the Federal Reserve Bank of New York's general economic index fell to 4.1 in September, down from 7.1 in August. That was the lowest number since July of last year, deep in the heart of the recession. Although the number is still positive – indicating an expansion of activity – the downward trend was enough to spook equities investors and put pressure on stock index futures.
At 9:33 a.m. EST, Dow Jones Industrial Average Index futures had slipped 48 points to 10,449, while Nasdaq 100 index futures lost 2.5 points to 1,920.
S&P 500 futures dropped 5.3 points to 1,110.50, while in Europe, the DJ Euro Stoxx 50 index futures slid 24 points to 2,785.
As often happens when the U.S. shows signs of cutting back on its manufacturing, equity index futures in commodity producing nations took a beating as well. Mexican Bolsa index futures slid 209 points to 33,080, while Brazilian Bovespa futures dropped 469 points to 67,735 at 9:28 a.m. EST.
Futures brokers and traders often perceive emerging markets like Brazil to be more inherently risky, and the dependence of such nations on exporting goods like soy, steel and oil to developed economies makes them vulnerable to manufacturing cutbacks.
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.