Awaiting New Data, Equity Markets Look Weak
The first week of the third quarter looks relatively light in terms of data, but investors will be busy as many in the markets, still absorbing the implications from Thursday’s unemployment figures, are re-assessing the rapid rise in stocks over the past three months.
Potential market-shakers include today’s ISM Non-Manufacturing Index, which is expected to improve but continue in contraction, and Friday’s Trade Balance, which should show exports getting a boost while imports keep sliding.
The weekend brought a considerable amount of news to investors, with crude oil dropping for five straight days to a five-week low below $64, and Vice President Joe Biden admitting that the economic downturn has been worse than the White House anticipated.
“We misread how bad the economy was, but we are now only about 120 days into the recovery package,” Biden said on ABC’s “This Week” yesterday. He noted that jobs will be created in the coming months, adding that stimulus measures will have a positive impact in September.
The big headline this morning is that General Motors has finalized a recovery plan with the federal government. U.S. taxpayers will own 60% of the revitalized automaker, with the other 40% owned by bondholders, the Canadian government, and the United Auto Workers Union.
A few hours before the opening bell, S&P 500 futures are down 8.8 points to 884.50, Nasdaq futures have fallen 13 points to 1432, and Dow futures are 83 points lower at 8197.
Key Releases this Week:
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