U.S. firms cut a surprising 39,000 jobs in September, data from ADP Employer Services showed, after a revised increase of 10,000 jobs from July to August. The news renewed fears that the economic recovery, already marginal, would stall and possibly reverse course.
The ADP report covers only private sector jobs; public sector hiring and firing are not included in the figures. But because the federal government is in the process of shedding temporary 2010 Census workers, the final figures for September are likely to be worse than ADP's.
The construction and manufacturing sectors were hardest hit, while the service industry saw modest gains.
In addition, experts from the Federal Reserve to Goldman Sachs are forecasting a year of modest, "fairly bad" economic conditions. And as conditions appear to worsen, Fed chairman Ben Bernanke is making more and more positive statements in favor of further quantitative easing.
Despite the largely negative news, stock index futures were mixed on Wednesday morning – Dow Jones Industrial Average index futures gained 14 points to 10,878 at 9:08 a.m. EST, while Nasdaq 100 index futures slipped 0.5 points to 2,018.
S&P 500 futures saw a gain of 1.1 points to 1,155.8, and across the Atlantic, the Dow Jones Euro Stoxx 50 index futures rose 25 points to 2,770.
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.