Stock index futures started off Wednesday in positive territory, thanks to surprisingly optimistic data from the United States Department of Labor. Jobless claims dropped in the first week of the month; for the week ending November 6, the advance seasonally adjusted claims figure was 435,000, down from the previous week's revised figure of 459,000.
Florida and South Carolina saw the biggest drops in unemployment claims, while California added more than 6,000 new claims.
"This is further confirmation that the job market is slowly improving," Russell Price, a senior economist at Ameriprise Financial, told Bloomberg News. "We are now headed in the right direction and may make some progress in breaking free of the range we’ve been stuck in since the beginning of the year."
U.S. stock index futures pointed to a upbeat opening, but equities quickly sold off after the bell. Dow Jones Industrial Average index futures slid 53 points to 11,260 at 9:51 a.m. EST, while S&P 500 index futures dropped 4.6 points to 1,206.30. Nasdaq 100 index futures declined 13.25 points to 2,163.
Foreign equities also dropped, with Hong Kong's Hang Seng index futures losing 277 points to 24,408 at 3:43 a.m. EST. A lone bright spot was seen in Tokyo, where Nikkei 225 index futures gained 70 points to 9,880 at 9:30 a.m. EST.
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.