Harrington Wealth Management Company

Market Notes - December 3, 2010

2010-12-03T09:00:00.000-05:00

U.S. stock index futures turned negative after the latest employment situation report came in softer-than-expected. The Labor Department showed non-farm payroll rose by 38,000, which was less much than expected. However, overall employment for September and October was revised to show 38,000 more jobs than previously thought. Average hourly earnings were flat in November after rising 0.3% in the prior month. The average workweek was steady at 34.3 hours. The unemployment rate edged up to 9.8% from 9.6% in October, which was slightly higher than analysts’ forecast for 9.7%. A report on factory orders and the non-manufacturing ISM index will be released at 01:00 am ET.

Market Notes - December 2, 2010

2010-12-02T08:48:00.001-05:00

U.S. stocks posted their biggest percentage gain in three months yesterday. Yesterday’s momentum has carried over to the futures market, which are also being supported by strength in overseas markets.

Retailers are reporting same-store sales for November. The overall results are coming in better than expected. Jobless claims, meanwhile, can in at a higher-than-expected 436,000 last week. This follows a lower-revised 410,000 in the previous week, which was the best reading of this recovery. The four-week moving average also improved to its best reading of the recovery at 431,000. After the opening bell, the National Association of Realtors will release its pending home sales index, which is a measure of sales contracts for existing homes. The index is expected to be unchanged in October after slipping 1.8% in September.

Market Notes - December 1, 2010

2010-12-01T08:55:00.001-05:00

U.S. stock futures rose sharply, following a rally in both European and Asian markets. This comes after strong manufacturing data in China and encouraging words from the European Central Bank that they are willing to support other struggling European nations if needed.

On the domestic front, there has already been a lot economic data released this morning. Mortgage applications for new homes rose 1.1% last week after rising 14.4% in the previous week. The average mortgage rate increased six basis points to 4.56% last week, after reaching a low of 4.30%. The rise in rates slowed refinancing applications, which dipped 21.6% last week.

The economy created 93,000 private sector jobs in November, according to the latest report from ADP. This follows a rise of 82,000 in October, which was revised higher from the originally reported 43,000. A separate report from Challenger, Gray & Christmas showed planned job cuts edged up in November.

U.S. non-farm productivity grew faster than previously estimated in the third quarter, as employees squeezed more output from workers and kept costs low. Productivity rose at an annual rate of 2.3% rather than the 1.9% pace reported last month, after contracting 1.8% in the second quarter. Still to come at 10:00 am ET, the ISM manufacturing index is expected to remain unchanged for November and at 2:00 pm the Federal Reserve’s region-by-region assessment of the economy, the Beige Book, is released.

Market Notes - November 30, 2010

2010-11-30T09:00:00.000-05:00

U.S. stock futures pointed to a lower start, influenced by worries of troubled European debt.

Economic data will be back in the spotlight today with reports on housing, manufacturing, and confidence. At 9:00 am ET, the S&P Case-Shiller home price index is expected to show a 1.0% increase in September after a 1.7% rise the month before. Shortly after that, a measure of manufacturing in the Chicago area is expected to show that activity slowed slightly, but still reflect expansion. At 10:00 am, the Conference Board will release its index of consumer confidence. The index is expected to have increased in November.

Market Notes - November 29, 2010

2010-11-29T09:03:00.001-05:00

Stocks headed for a flat opening as investors returned from the holiday shortened week.

While there are no major economic reports due today, there will be plenty of influential reports throughout the week. Tomorrow, the S&P Case-Shiller home price index is expected to show a 1% rise after the previous months’ 1.7% gain. The November reading of the Chicago PMI, a regional manufacturing index, is expected to decrease, but still reflect expansion in the region. The Conference Board will release its November reading on consumer confidence, which is expected to have edged higher.

Wednesday will be busy with reports on motor vehicle sales, mortgage applications, private sector jobs, productivity and costs, construction spending, and manufacturing. The weekly jobless claims number and the pending home sales index are due Thursday. The closely watched employment situation report for November is due on Friday. The consensus for new jobs added ranges from 100,000 to 200,000. Also due are reports on factory orders and non-manufacturing activity.

Market Notes - November 24, 2010

2010-11-24T09:11:00.000-05:00

Markets sold off yesterday as tension rose in Korea, but world markets have since stabilized and U.S. futures point to a positive start.

There has already been a lot of economic data released today. Most importantly, the employment situation continues to show improvement as the number of people filing for unemployment benefits fell sharply last week. Initial claims fell to 407,000, which is down 34,000 week-over-week and well below the 442,000 that was expected. This is also the lowest level since July 2008. There was also surprisingly good news for the housing sector, as mortgage applications rose to their highest level in six months. A separate report showed consumer spending rose for the fourth straight month, while inflation remained anemic. However, new orders for U.S. manufactured goods fell in October, but the prior month was revised higher. Reports on new home sales and consumer sentiment are still to come.

Market Notes - November 23, 2010

2010-11-23T08:45:00.000-05:00

U.S. stock futures trades lower amid military tension between North and South Korea.

The revised reading on U.S. economic growth showed the economy grew faster than expected in the third quarter. GDP was revised to an annualized rate of 2.5% from the initial reading of 2.0% as exports, consumer, and government spending were stronger than initially thought. Analysts were expecting the number to be revised to 2.4%.

The National Association of Realtors is scheduled to report October existing home sales at 10:00 am ET. Economists expect the report to show sales fell to an annual rate of 4.42 million last month, from 4.53 million in September. At 2:00 pm, the Federal Reserve is due to release the minutes from the last FOMC policy meeting.

Market Notes - November 22, 2010

2010-11-22T08:51:00.000-05:00

U.S. stock futures pointed to a flat start to the holiday-shortened week.

On the global front, Ireland formally asked the International Monetary Fund and the European Union for financial assistance. This was well anticipated, so the markets have only had a modest reaction. The details are still being worked out, but the country will likely be forced to make further massive spending cuts and raise its low corporate tax rate.

Investors will have several major economic reports to consider before the holiday. Tomorrow we will get the revised GDP figure and latest report on existing home sales. Wednesday will be the busy day of data, with reports on durable goods, personal income and outlays, new home sales, mortgage applications, home prices, consumer sentiment, and weekly jobless claims. The markets are closed Thursday for Thanksgiving, and the stock market closes at 1:00 pm ET on Friday.

Market Notes - November 19, 2010

2010-11-19T08:42:00.001-05:00

U.S. stock index futures traded lower this morning after a global markets posted solid gains yesterday. The Dow, NASDAQ, and the S&P all rose at least 1.5%.

Weighing in on today’s sentiment was news that China ordered its banks to raise their reserve requirements to slow lending and cool inflation. This is the second such tightening in two weeks, and fifth time this year. Investors are also looking for developments in Ireland to see if a financial aid package emerges. There are no major economic data or corporate reports scheduled for today.

Market Notes - November 18, 2010

2010-11-18T08:49:00.001-05:00

U.S. futures are up sharply this morning, as overseas markets surged higher on news that Ireland may have reached a deal for financial assistance. Britain’s’ FTSE 100 and the DAX in Germany were both 1.4% higher, while France’s CAC 40 rose 1.6%. Asian markets also ended the session with gains.

New claims for unemployment benefits rose less-than-expected last week. Initial claims climbed by 2,000 to a seasonally adjusted 439,000. Economists were expecting initial claims to total 445,000. The number of people still receiving benefits after an initial week of aid fell 48,000 to 4.30 million, in line with expectations and the lowest level since November 2008.

The October Index of Leading Indicators and the Philadelphia Fed Index are due at 10:00 am ET. Both are expected to have risen from the previous month. Also of interest, GM priced its highly anticipated initial public offering at $33 a share yesterday. The automaker’s offering is expected to raise $23.1 billion, making it the largest IPO in U.S. history.

Market Notes - November 17, 2010

2010-11-17T08:52:00.001-05:00

U.S. stock futures remained higher after the release of this morning’s economic data.

Mortgage applications dipped last week, after loan rates increased. The Mortgage Bankers Association said its overall index of mortgage applications, which includes refinances and new purchases, fell 14.4% last week. The 30-year fixed-rate mortgage rose to 4.46% from 4.28% in the previous period. A separate report showed housing starts fell in October.

Consumer inflation remains muted. The overall Consumer Price Index rose 0.2% in October, after a 0.1% rise in September. The consensus called for a 0.4% rise. The core CPI, which excludes food and energy, was unchanged for the third straight month. Economists were expecting to see a 0.1% rise.

Market Notes - November 16, 2010

2010-11-16T08:52:00.000-05:00

U.S. stock futures pointed to a weak start as markets overseas traded lower.

Inflation at the producer level came in lower than expected in October. The overall Producer Price Index (PPI) held steady at 0.4%, but was well below the consensus forecast for a 0.8% increase. At the core level, the PPI actually fell 0.6% which was significantly lower than the 0.1% expected increase.

Treasury International Capital Flow data for September will be released at 9:00 am ET. Shortly after that, industrial production and capacity utilization data for October will be released. At 10:00 am ET, the National Association of Home Builders will release its housing index.

In corporate news, Wal-Mart posted higher quarterly profits and raised its earnings forecast, but U.S. same-store sales declined. Home Depot topped earnings and revenue expectations, and also raised expectations.

Market Notes - November 15, 2010

2010-11-15T08:25:00.001-05:00

U.S. futures pointed to a slightly higher open, after stocks finished last week lower. There was not a lot of economic data in the previous week to influence the markets, but there could be plenty this week. Before the markets open, October retail sales data and the November Empire Manufacturing Index will be released. At 10:00 am ET, September business inventories data is due.

Tomorrow, reports on producer prices, industrial production and housing conditions will be released. On Wednesday we will see the reports on mortgage applications, housing starts, and consumer prices. The index of leading indicators, weekly jobless claims, and the Philadelphia Fed Survey are due on Thursday. There are no releases scheduled for Friday.

Market Notes - November 12, 2010

2010-11-12T08:59:00.001-05:00

U.S. stock futures traded lower after steep losses in Asia. An increase of inflation in China has some investors concerned of future rate hikes. The Shanghai Composite dropped 5.2%, the Hang Seng in Hong Kong dropped 1.9% and Japan’s Nikkei ticked down 1.4%.

Domestic economic news is light again today. A report on consumer sentiment comes out after the market opens. The University of Michigan consumer sentiment index for early November is expected to rise to 69 from 67.7.

Market Notes - November 10, 2010

2010-11-10T09:00:00.001-05:00

U.S. stock index futures are edging higher as investors take in several economic reports.

Mortgage applications rose last week. The Mortgage Bankers Association’s purchase index rose 5.5%, while the refinance index rose 6.0%. The 30-year mortgage rate held steady at 4.28%.

Initial jobless claims fell more-than-expected in the previous week. Initial claims fell 24,000 to 435,000, much lower than the 450,000 that was generally expected and down from 459,000 in the previous week. Continuing claims also dropped by 86,000 to 4.301 million.

The trade deficit narrowed in September, as a weaker dollar helped exports grow for a third consecutive month. Separately, import prices increased 0.9% in October after a 0.3% decline in September. The weekly crude oil inventory report and the October Treasury budget will be released later today.

Market Notes - November 9, 2010

2010-11-09T08:38:00.001-05:00

U.S. stocks appeared set to open higher, after European markets rose on strong corporate earnings. There is little news to influence markets this morning. The only economic data scheduled for today is a report on wholesale inventories at 10:00 am ET. Economists expect to see a 0.6% increase after increasing 0.8% in September. Tomorrow we will see reports on mortgage applications, jobless claims, international trade, and the federal budget.

Market Notes - November 8, 2010

2010-11-08T08:20:00.001-05:00

Stock futures point to a lower start for the week after the major indices ended last week at their highest level in more than two years.

Economic data is light this week and there are no major releases scheduled Monday or Tuesday. On Wednesday, reports on mortgage applications, international trade, and the Treasury budget will be released. The weekly jobless claims report will also be released on Wednesday this week because the bond market is closed on Thursday for Veteran’s Day. And on Friday, will see a report on consumer sentiment.

Market Notes - November 5, 2010

2010-11-05T09:01:00.000-04:00

Stock futures were indicating a lower start, but turned higher after a better-than-expected employment report.

Nonfarm payrolls surged 151,000 in October, after a revised 41,000 decline in September and a 1,000 decrease in August. The October number came in well above the 60,000 increase that was generally expected and the August and September numbers were revised higher by 110,000. The private sector added 159,000 jobs, after a revised 107,000 boost in September. Economists were expecting an 85,000 increase for private payrolls. Government employment fell less-than-expected, falling by only 8,000 after a 148,000 decline in September.

Average hourly earnings matched expectations by gaining 0.2% in October after rising 0.1% in September. The average workweek increased to 34.3 hours from 34.2, slightly topping expectations for 34.2 hours. The headline unemployment rate still stands at 9.6%, as expected.

Today’s report shows the labor sector healing more than anticipated. This is good news for the economy, though there is still a long way to go to return to pre-recession unemployment levels.

Market Notes - November 4, 2010

2010-11-04T09:00:00.001-04:00

Global stocks moved higher while the dollar slid after the Federal Reserve announced that it will buy $600 billion in government bonds over the next eight months as part of a plan to further aid the economic recovery. The Fed also said it would “regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and adjust the program as needed to best foster maximum employment and price stability.”

Initial jobless claims for the week ended October 30 totaled 457,000, up from 437,000 the week before and higher than the 443,000 expected. Continuing claims dropped 42,000 to 4.34 million. A separate report showed nonfarm productivity in the third quarter surprised on the upside, increasing 1.9%, after declining 1.8% in the prior quarter. Unit labor costs edged down to an annualized 0.1% in the third quarter, after rising 1.3% in the second quarter. Costs were below analysts’ expectations.

Market Notes - November 3, 2010

2010-11-03T08:39:00.001-04:00

The ADP Employer Services report came in better-than-expected. U.S. private employers added 43,000 jobs in October, compared to a revised loss of 2,000 jobs in September. The original September figure reported a loss of 39,000 jobs. The ADP report comes ahead of the government’s more comprehensive employment situation report on Friday.

After the opening bell, the Institute of Supply Management’s services index is expected to show a modest increase. Factor orders will be released at the same time and the report is expected to show improvement. The Fed also concludes its two-day policy meeting. An announcement is scheduled for 2:15 pm ET.

Market Notes - November 2, 2010

2010-11-02T08:41:00.002-04:00

There is no major economic data scheduled for today, but midterm elections will begin and the Fed kicks off its two-day policy meeting. The FOMC is widely expected to unveil some sort of quantitative easing plan in its statement tomorrow afternoon. The Reserve Bank of Australia raised its benchmark interest rate last night from 4.5% to 4.75%.

Market Notes - November 1, 2010

2010-11-01T08:55:00.000-04:00

U.S. consumer spending rose 0.2% in September, after a 0.5% increase in August. Personal income slipped 0.1% in September after a 0.4% increase in the previous month. Economists were expecting to see a slight increase in personal income. Later this morning, the ISM Manufacturing Index and the Construction Spending report will be released.

The FOMC begins its two-day meeting tomorrow, but election results will likely be the focal point Tuesday. On Wednesday, we will see the ADP employment report, the ISM Non-Manufacturing Index, and factor orders. The FOMC will also make their latest announcement at 2:15 pm ET. Reports on weekly jobless claims and productivity and costs will be released Thursday. We end the week with pending home sales data and the government’s employment situation report.

Market Notes - Octobber 29, 2010

2010-10-29T09:07:00.000-04:00

U.S. economic growth edged up in the third quarter. The advanced reading showed GDP expanded at a 2.0% annualized rate, following a 1.7% rise in the prior quarter. The reading was in line with expectations. The overall increase was partly supported by a 2.6% increase in personal consumption, after a 2.2% increase in the prior quarter. The personal consumption (PCE) index, excluding food and energy, rose at an annual rate of 0.8%, after a 1.0% increase in the second quarter.

A separate report showed employment costs rose 0.4% in the quarter, slightly less than expected. The Chicago Purchasing Manger Index will be released at 9:45 am ET and the University of Michigan’s consumer sentiment index is due at 9:55 am.

Market Notes - Octobber 28, 2010

2010-10-28T08:55:00.000-04:00

New claims for unemployment benefits unexpectedly fell last week, reaching their lowest level since July. Initial claims totaled 434,000, which is down 21,000 week-over-week and well below the 455,000 expected. Continuing claims fell 122,000 to a two-year low of 4.356 million. This is the only economic report being released today.

On the earnings front, Dow Chemical, Eastman Kodak, Motorola, Visa, and 3M all beat analysts’ estimates. Avon and Colgate Palmolive were among the companies whose results disappointed. Microsoft is among those reporting after the bell.

Market Notes - Octobber 27, 2010

2010-10-27T09:04:00.000-04:00

Earnings continue to come in better than analysts had anticipated, but that has failed to boost stock futures this morning. Comcast, Procter & Gamble, Aflac, International Paper, and Whirlpool are among those topping estimates. Sprint Nextel and Southern Co. are among the handful of name that came in short of expectations.

Mortgage applications for home purchases and refinancing rose last week. Borrowing costs on the 30-year fixed rate mortgage averaged 4.25%, just above the record low. We will get more insight in the housing market today with the release of new homes sales data. On Monday, existing home sales rose 10% from the previous month.

Durable goods orders for September increased 3.3%, following a 1.0% decrease in August. The gain in September came in well above the consensus expectation for a 1.6% gain. Excluding transportation, new durable goods orders fell 0.8%, after a 1.9% increase in August.

Market Notes - Octobber 26, 2010

2010-10-26T08:53:00.000-04:00

A stronger-than-expected report on existing home sales Monday helped push stocks to a 6-month high. We will get more housing data today at 9:00 am ET when the S&P Case-Shiller Home Price Index is released. The index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S. The consensus calls for a 2% rise, after the previous month’s 3.2% gain. In a separate report at 10:00 am, the Conference Board will release its reading on consumer confidence. The index is expected to have risen to 49, from 48.5 in September.

Results form the next batch of corporate earnings could also shift market sentiment. Bristol-Myers’ profits slipped, but still topped expectations, while Ford and DuPont easily beat expectations. There will be many more companies reporting this week.

Market Notes - Octobber 25, 2010

2010-10-25T08:56:00.001-04:00

Corporate earnings helped lift stocks last week and could be an influence again this week. After the close today, Amgen and Texas Instruments will release earnings. Other companies announcing this week include RadioShack, DuPont, Ford, Procter & Gamble, 3M, Exxon Mobil, and Microsoft.

The National Association of Realtors will release its September report on existing home sales at 10:00 am ET, with analysts expecting an increase. We will get data on home prices and consumer confidence tomorrow. New home sales and mortgage applications data will be released Wednesday, along with the latest Durable Goods Orders report. On Thursday, we will get the weekly jobless claims number. And Friday will be busy with the Employment Cost Index, the Chicago PMI, and the first GDP reading for the third quarter.

Market Notes - Octobber 22, 2010

2010-10-22T08:33:00.000-04:00

Strong earnings from dozens of companies over the past few days have pushed stocks higher. There are no major economic reports scheduled today and earnings announcements will be light. The latest batch of companies to post better-than-expected earnings includes Amazon.com, American Express, Schlumberger, and Verizon. Stock futures were up slightly ahead of the opening bell.

Market Notes - Octobber 21, 2010

2010-10-21T08:44:00.001-04:00

Strength from the prior session extended into today’s early morning activity, helped by another round of better-than-expected earnings. Caterpillar easily topped expectations and raised its full-year guidance. Eli Lilly, UPS, eBay, Travelers, and McDonalds all beat expectations. After the close, highlights include Amazon and American Express.

In economic news, weekly jobless claims fell more than expected. Initial claims totaled 452,000, which is down 23,000 week-over-week. However, the previous week was revised 13,000 higher. Continuing claims came in at 4.44 million, down about 9,000 from the prior week. The Conference Board’s Leading Economic Indicators Index, due at 10:00 am ET, is forecast to remain unchanged at 0.3% in September. At the same time, the Philadelphia Fed Survey is expected to show an increase in business activity from the previous reading.

Market Notes - Octobber 20, 2010

2010-10-20T08:37:00.001-04:00

It is another big day for corporate results. Among the more widely held names that reported, Yahoo! topped expectations, but issued a weak forecast. United Technologies and Boeing both posted upside earnings surprises and improved their outlooks. Morgan Stanley missed estimates, but US Bancorp and Wells Fargo both posted better than expected earnings. There are over a hundred others reporting today.

Today will be another light day for economic news. The Fed’s Beige Book is the only item on the calendar. It is scheduled for release at 2:00 pm ET.

Market Notes - Octobber 19, 2010

2010-10-19T08:52:00.001-04:00

Stock futures were down ahead of the opening bell. A surprise rate hike by China has slowed the enthusiasm over numerous better-than-expected earnings results, including those of IBM, Apple, Bank of America, Goldman Sachs, Coca-Cola, and Johnson & Johnson. There will be dozens more reporting earnings today.

In terms of economic news, data will be light today. The Commerce Department said new construction of U.S. house expanded for the third straight month in September. Starts rose 0.3% to a seasonally adjusted 610,000 annualized units, much stronger than the 578,000 pace expected. Building permits, a leading indicator of construction, fell 5.6% to a seasonally adjusted rate of 539,000 units. There are no other reports today.

Market Notes - Octobber 18, 2010

2010-10-18T08:57:00.000-04:00

Stock futures were lower ahead of a busy week of earnings. So far third quarter results have generally come in above expectations. It is still early in the reporting period, but approximately 83% of the S&P 500 companies that have reported, have beat analyst forecasts. The latest company to top estimates is Citigroup. Apple and IBM are two other notables reporting today.

Economic data is light this week and the focus will be on housing and manufacturing. The industrial production report and the housing market index are scheduled for today. Tomorrow we will see housing starts. On Thursday we will get the weekly jobless claims number, the index of leading indicators, and the Philadelphia Fed Survey.

Market Notes - Octobber 15, 2010

2010-10-15T09:08:00.001-04:00

U.S. stock futures were flat early but swung higher following Fed Chairman Ben Bernanke’s comments and positive economic reports.

In a speech made this morning, Bernanke said that with the current high unemployment and low inflation, there is a “case for further action” on the monetary policy front. He reiterated that the FOMC is ready to provide “additional accommodation if needed.”

On the economic front, the pace of retail sales has picked up. The latest retail sales report showed broad based strength, with overall sales advancing 0.6% in September, following a higher revised 0.7% gain in August and a higher revised 0.3% in July. Today’s report shows the consumer is apparently in better shape than previously believed. A separate report showed a large increase manufacturing activity in the New York region. The latest report came in much higher than expected. Inflation, meanwhile, remains soft. The overall CPI slowed to 0.1% in September, while core CPI was flat.

Market Notes - Octobber 14, 2010

2010-10-14T09:06:00.000-04:00

U.S. stock futures were higher early, but pulled back some after the latest round of economic data.

After improving in five of the last six weeks, initial jobless claims for the previous week rose 13,000 to a higher than expected 462,000. Continuing claims fell substantially by 112,000 to a recovery low of 4.399 million. A separate report showed producer price inflation was mixed for September. The overall PPI remained elevated at 0.4% in September, matching August and well above the expected 0.1% increase. At the core level, the PPI remained at 0.1%, in line with August and expectations. Finally, the overall U.S. trade deficit increased to $46.3 billion in August from $42.3 billion in July.

Market Notes - Octobber 13, 2010

2010-10-13T08:45:00.001-04:00

Upbeat earnings announcements and strength in overseas markets has boosted U.S. stock futures this morning.

JPMorgan Chase reported an earnings increase of 23%, as its loan losses continued to decline. Chipmaker Intel Corp reported a rise in both sales and earnings, and railroad operator CXX also topped forecasts.

Economic news is light today. The Mortgage Bankers’ Association purchase index fell 8.5%, but the refinance index surged 21.0% to push the composite index 14.6% higher. The average rate on 30-year mortgages fell four basis points in the week to a record low 4.21%. A separate report showed import prices fell 0.3% in September and export prices rose 0.6%.

Market Notes - Octobber 12, 2010

2010-10-12T08:50:00.001-04:00

U.S. stocks appeared set for a lower open, as investors awaited the release of the minutes from the Federal Reserves most recent policy meeting. The release is scheduled for 2:00 pm ET and will likely be the highlight in terms of economic data this week.

On Thursday, the producer price index, the weekly jobless claims and a report on international trade will be released. Reports on consumer prices, retail sales, and consumer confidence are scheduled for Friday. On the earnings front, Intel, JPMorgan Chase, General Electric, Google, and CSX are among those reporting this week.

Market Notes - Octobber 8, 2010

2010-10-08T09:06:00.000-04:00

The U.S. economy shed jobs in September for a fourth straight month. The Labor Department said nonfarm payrolls dropped 95,000. Private employment, a better gauge of labor market health, increased 64,000 after rising a revised 93,000 in August. Meanwhile, the unemployment remained unchanged at 9.6%. Stock market futures dropped initially on the news, but have since recovered.

Market Notes - Octobber 7, 2010

2010-10-07T08:53:00.001-04:00

Stock futures were little changed this morning, despite better than expected jobs market data.

The number of initial weekly jobless claims dropped 11,000 to 445,000. The number was slightly better than the 455,000 expected by economists. Continuing claims declined 48,000 to 4.46 million. A separate report that analyzes online job demand also showed strength this month. Both reports point to improvement in the job market and should help calm nerves following yesterday’s disappointing ADP report. Tomorrow’s employment situation will provide more detail on the labor market.

Market Notes - Octobber 6, 2010

2010-10-06T09:00:00.000-04:00

Stocks appeared set to extend yesterday’s rally, but lost much of their momentum after early economic reports.

ADP reported private sector jobs dropped by 39,000 last month. Economists were calling for a gain of 18,000. A separate report by Challenger, Gray & Christmas showed the number of job cuts planned by employers edged up slightly in September. We will see additional employment data tomorrow and Friday.

In other economic news, U.S. mortgage applications for home purchases rose for the second straight week, while applications for refinancing loans fell for a fifth straight week. Taking both into account, the seasonally adjusted index of mortgage applications fell 0.2% last week.

Market Notes - Octobber 5, 2010

2010-10-05T08:53:00.001-04:00

U.S. stock futures picked up momentum from foreign markets, as global investors reacted positively to a surprise move by the Bank of Japan to cut its key lending rate. Japan’s central bank announced it would lower its key rate to virtually zero and would also purchase 5 trillion yen ($60 billion) of government bonds to boost the pace of the country’s recovery.

In the U.S., the Institute for Supply Management’s services sector index for September is due at 10:00 am ET. Economists expect the index to have edged up to 51.8 from 51.5 in August. Any number above 50 indicates growth in the sector. There are no other major reports today. We will begin seeing employment data tomorrow, with the government’s employment situation report on Friday.

Market Notes - Octobber 4, 2010

2010-10-04T08:50:00.000-04:00

Stock index futures were lower as investors await today’s economic data. At 10:00 am ET, the Commerce Department is expected to show a 0.4% dip in factory orders in August, following a 0.1% increase in July. At the same time, the National Association of Realtors releases its pending home sale index. The report is expected to show a slight uptick for August, after the 5.2% jump in the previous month.

On Tuesday, the ISM non-manufacturing index will be released. The Challenger Job-Cut report and the ADP Employment report will be released on Wednesday. Weekly jobless claims will be released Thursday, and the closely watched Employment Situation report will be released by the government on Friday.

Market Notes - Octobber 1, 2010

2010-10-01T09:03:00.000-04:00

Stock futures continued to show strength following the latest economic data. Personal income for August increased 0.5%, which was more than the 0.3% expected increase. Income in the prior month increased 0.2%. Personal spending advanced 0.4%, equaling the pace in July and matching expectations. After U.S. markets open, reports on nationwide manufacturing activity, construction spending, consumer confidence, and auto sales will be released.

Market Notes - September 30, 2010

2010-09-30T08:54:00.000-04:00

Stock futures are up in response to the latest batch of economic data.

The final estimate on second quarter GDP showed an annualized growth rate of 1.7%, up from the previous estimate of 1.6%. Consumer spending increased 2.2% in the second quarter, an improvement from the 1.9% increase in the first quarter.

Initial jobless claims for the week came in at 453,000. While still elevated, the latest number is 16,000 lower than the previous week and was less than expected. Continuing claims fell 83,000 from the previous week, to 4.46 million. The dip in initial claims points to improvement for the monthly employment data.

In corporate news, AIG said it reached a deal to repay billions of dollars it received from the government during the credit crisis. AIG was the largest recipient of bailout money during the crisis.

Market Notes - September 2, 2010

2010-09-29T08:45:00.001-04:00

Stock index futures traded in a narrow range before the open. There is little in terms of economic news due out today. Overall mortgage applications dipped last week as refinances declined and new purchases rose. Tomorrow we will get the final GDP number and the weekly jobless claims.

Market Notes - September 28, 2010

2010-09-28T08:44:00.000-04:00

U.S. stock futures rose slightly as investors wait for the latest data on home prices and consumer prices. The S&P Case-Shiller Home Price Index comes out at 9:00 am ET. Economists expect the report to show home prices are up 3.4% year-over-year, slightly lower than the 4.2% year-over-year increase reported in August. The Consumer Confidence Index comes out at 10:00 am ET, and is expected to show a slight decline from the previous reading.

Market Notes - September 27, 2010

2010-09-27T08:22:00.001-04:00

Stocks finished last week with gains and futures edged higher this morning on corporate merger and acquisition news. There are no major economic releases scheduled for today, so corporate deal making will take center stage.

Tomorrow we will see data on home prices and consumer and investor confidence. The final GDP number will be released Thursday along with weekly jobless claims. Friday will be the busy day for data. Reports on motor vehicle sale, personal income and outlays, consumer sentiment, construction spending and manufacturing activity are all scheduled for release.

Market Notes - September 24, 2010

2010-09-24T08:47:00.001-04:00

Stock futures climbed ahead of the opening bell, despite a disappointing looking headline durable goods orders number. The Commerce Department said durable goods orders dropped 1.3% after a revised 0.7% increase in July. Expectations were for a 1.0% decline from the previously reported 0.4% rise. Excluding transportation, orders rose by a more-than-expected 2.0% after falling by a revised 2.8% in July, previously reported as a 3.7% fall. It was the largest rise since March. Expectations were for a 1.0% rise in orders excluding transportation.

A separate report from the Commerce Department is expected to show sales of new homes rose last month after touching the lowest level on records dating back to 1963 in July. Economists forecast sales rose 5.1 percent to an annual rate of 290,000. A separate report released yesterday showed existing home sales rose last month. There are no other reports due today.

Market Notes - September 23, 2010

2010-09-23T08:57:00.001-04:00

New claims for unemployment benefits increased 12,000 last week. The Labor Department said that initial claims rose to 465,000 from 453,000 in the previous week. Continuing claims fell 45,000, leaving the four-week moving average at 4.520 million. Stock futures edged lower in initial reaction to the report.

The latest data on existing home sales is due at 10:00 am ET. The index is expected to show a small increase in August sales. At the same time, the Conference Board’s index of leading indicators will be released. The consensus calls for slight improvement.

Market Notes - September 22, 2010

2010-09-22T08:27:00.004-04:00

U.S. stock futures drifted lower ahead of the opening bell. There are no major economic reports due out today, so traders are mulling over the wording of yesterday’s Federal Reserves policy statement.

In corporate news, Microsoft raised its dividend for the first time in two years. Overseas, European markets were lower, while Asian markets were mixed.

Market Notes - September 15, 2010

2010-09-15T08:45:00.000-04:00

Stock index futures drifted lower ahead of this morning’s economic reports.

A regional manufacturing report for New York showed modest growth, but slightly less than expected. The Empire State Manufacturing Survey Index slipped to 4.1 from 7.1 in the previous month. A reading above zero indicates growth. A separate report showed import prices rose faster than expected in August. The Federal Reserve is expected to report industrial production inched higher last month. The report is scheduled for release at 9:15 am ET.

Market Notes - September 14, 2010

2010-09-14T08:46:00.000-04:00

The S&P 500 advanced 1% in the prior session, but momentum slowed some this morning. U.S. stock futures have edged up from morning lows on better-than-expected economic data.

Retail sales continued to improve, topping expectations for August. Overall sales gained 0.4% after a 0.3% rise in July. Excluding autos, sales increased 0.6% after a 0.1% rise in July. In a separate report, same store sales jumped 0.8% for in the previous week, driving the year-over-year number to a 2.6% increase. In other economic news, small business optimism improved in the latest reading. Business inventories will be released later this morning.

Market Notes - September 13, 2010

2010-09-13T08:50:00.000-04:00

Global markets moved higher and futures pointed to a strong start for U.S. stocks. The positive sentiment comes after officials from 27 countries agreed to new banking rules aimed at preventing future financial crisis. The Basel III agreement would force financial institutions to more than double their capital reserves, but banks will have several years to phase in the new capital requirements. Separately, fresh signs of strong economic expansion in China also added to market strength this morning.

The U.S. Treasury Department is scheduled to release August budget number this afternoon. On Tuesday, retail sales and business inventory data will be released. A report on industrial production and the Empire State Manufacturing Survey will be released Wednesday. On Thursday, we will see the latest Produce Price Index, the weekly jobless claims number and the Philadelphia Fed Survey. We end the week with reports on consumer prices and consumer sentiment.

Market Notes - September 10, 2010

2010-09-10T08:40:00.000-04:00

Stock futures were higher this morning after the markets finished with gains yesterday.

Economic news will be light today. The only report scheduled is on wholesale inventories, which will be released at 10:00 am ET. Economists expect inventories rose 0.4% in July while sales rose 0.3%. Wholesalers do not typically stock up on goods unless there is an expectation that retail sales will pick up in coming months, so some look to this report as an indicator of future sales.

Market Notes - September 9, 2010

2010-09-09T08:50:00.000-04:00

U.S. stock futures edged higher following the release of the weekly jobless claims report.

The labor markets showed a sign of improvement as initial jobless claims fell substantially last week. The Labor Department said weekly claims came in at 451,000 from 478,000 in the previous week. Analysts were expecting a reading of 470,000. Continuing claims meanwhile, came in little changed. A separate report showed improvement in the trade gap. The trade deficit for July narrowed to $42.8 billion from $49.8 billion in June. Exports rebounded 1.8% while imports declined 2.1%.

Market Notes - September 8, 2010

2010-09-08T08:44:00.001-04:00

U.S. stock futures were up marginally this morning. Corporate news is light again today and the economic data scheduled for today will not likely move the markets.

The MBA mortgage application index rose 6.3% last week to its highest level since May, while the refinance index slipped 3.1%. The average 30-year mortgage rate rose 7 basis points in the week to end at 4.50%. The Fed’s Beige Book, a snapshot of regional economic conditions, comes out later in the day.

Market Notes - September 7, 2010

2010-09-07T08:40:00.001-04:00

U.S. futures pointed to a lower start to the holiday shortened week. Better-than-expected economic data last week helped push markets to end the previous week with gains.

There are only a few economic reports that could sway investors this week. International trade data and the weekly jobless claims number will be the highlights. Both reports are scheduled for Thursday. Wholesale trade data is due Friday and the Fed’s Beige book is scheduled for release on Wednesday.

Market Notes - September 3, 2010

2010-09-03T09:06:00.001-04:00

U.S. stock index futures were quiet ahead of the government’s employment situation report, but posted solid gains following its release.

The Labor Department said that overall payroll jobs in August slipped 54,000, but that was better than the consensus forecast of 90,000 lost jobs. June and July numbers were also revised 123,000 higher. A large part of the weakness was from the government sector, which still includes layoffs of temporary Census workers. In contrast, private nonfarm employment continued to rise, gaining 67,000 in August, following a higher revised 107,000 boost in the prior month. Economists called for only a 40,000 advance in private payrolls. Hourly earnings also rose more than expected, climbing 0.3% from up 0.2% in July. Economists were expecting earnings to rise 0.1%. The average workweek was unchanged at 34.2 hours and the unemployment rate inched up to 9.6%, both as expected.

A separate report from the Institute for Supply Management is expected to indicate that the services sector continued to expand in August. The ISM said Wednesday that the manufacturing sector expanded in August at a faster pace than economists forecast. The report is due at 10:00 am ET.

Market Notes - September 2, 2010

2010-09-02T08:53:00.001-04:00

Stock futures were flat early after a 3% surge in the S&P 500 index in the prior session. Asian markets were notably higher overnight, but European markets were mixed.

Initial jobless claims for the week ended August 28 totaled 472,000, in line with expectations an lower than the 478,000 reported in the prior week. Continuing claims fell 23,000 to 4.456 million. Separately, nonfarm productivity in the second quarter fell 1.8%, after a 3.9% advance in the prior quarter. Unit labor costs rebounded 1.1% in the second quarter, following a 4.6% drop in the first. Both numbers were in line with expectations. Still to come are factory orders and pending home sales data.

Market Notes - September 1, 2010

2010-09-01T08:51:00.002-04:00

U.S. stocks were poised to start September off on a positive note, following weak performance in August. Many overseas markets were also higher on positive growth news out of China and Australia.

Employment data released before the opening showed private hiring shrank, but planned layoffs fell. The Challenger, Gray, & Christmas report showed layoff announcements fell from 41,676 in July to 34,768 in August. This marks the lowest total of the recovery. Separately, the ADP employment report for August showed the private sector loosing 10,000 jobs in the month.

At 10:00 am ET, the Institute of Supply Management issues its monthly manufacturing index. The consensus calls for the reading to drop to 52.5 for August from 55.5 in July. A reading above 50 indicates expansion in manufacturing and a reading below indicates contraction. Also released at the same time, July construction spending figures are expected to show a 0.5% drop following a 0.1% increase in June.

Market Notes - August 31, 2010

2010-08-31T08:59:00.001-04:00

U.S. stock index futures were poised for a weaker start, following a pull back in global markets, as investors awaited reports on housing prices, consumer confidence and manufacturing.

At 9:00 am ET, the S&P/Case-Shiller Home Price Index will be released. The index likely grew at a 3.1% year-over-year rate in June, slightly slower than the 4.6% rate in May. At 9:45 am, the Chicago Purchasing Mangers index, a regional reading on manufacturing, is expected to show a drop to 57.6 for August, compared to last month’s 62.3 reading. The Conference Board’s Consumer Confidence Index, out at 10:00 am, is forecast to come in at 51.0 for August, compared to the July reading of 50.4. And at 2:00 pm, the Federal Reserve releases minutes from the most recent Federal Open Market Committee meeting.

Market Notes - August 30, 2010

2010-08-30T08:58:00.001-04:00

U.S. stock futures were mixed as we enter a busy week of data.

The only report today showed the consumer made a comeback in July in both income and spending. Personal income in July rose 0.2%, following a flat reading in June. Spending, which also was flat in June, increased 0.4%, which was slightly more than expected.

The Employment Situation report on Friday will likely be most talked about this week, but there will be plenty of other data before then. We will see reports on home prices, consumer confidence and Midwest manufacturing on Tuesday. On Wednesday we will see reports on motor vehicle sales, private employment, construction spending, and manufacturing. Pending home sales, initial jobless claims and productivity and costs data are set for Thursday.

Market Notes - August 27, 2010

2010-08-27T08:57:00.001-04:00

U.S. stock index futures perked up after the latest report on economic growth.

It was widely expected that the nation’s gross domestic product (GDP) would be revised downward from the initial estimate, but the revision was not as sharp as expected. The Commerce Department revised second quarter GDP to 1.6% from the initially reported 2.4%. Analysts were expecting the number to be revised to 1.3%. Personal consumption was actually revised higher to 2.0% from 1.6%. On the inflation front, the GDP price index was bumped up marginally to 1.9% from the initial estimate of 1.8%.

Also on the economic front, the University of Michigan will release its monthly consumer sentiment index, which is expected to come in at 69.9. The preliminary August reading was 69.6, and the final July reading was 67.8. Later in the day, Fed chairman Ben Bernanke is scheduled to speak at an annual meeting of central bankers.

Market Notes - August 26, 2010

2010-08-26T08:54:00.000-04:00

Stock index futures were little changed as investors anxiously waited for the weekly jobless claims number. The recent softening in employment data has forced this report into the spotlight lately.

Upon release of the latest jobless claims number, stock futures spiked. Initial claims for the previous week totaled 473,000, which is down 31,000 from the previous report and well below the 485,000 that was expected. Continuing claims came in at 4.46 million, which was down from the previous reading of 4.52 million. This report should quell some of the pessimism, but the outlook for the July employment situation report still is not very bright. There are no other major reports due today. Tomorrow we will see the revised GDP figure and the latest take on consumer sentiment.

Market Notes - August 25, 2010

2010-08-25T09:06:00.000-04:00

Stock futures dipped after a disappointing durable goods orders report.

Durable goods orders rose just 0.3% in July, well short of the 2.8% increase that economists had forecast. Excluding the volatile transportation sector, orders fell 3.8%. Data for the prior month was revised higher though. Total orders for June declined 0.1% instead of the 1.2% drop that was previously reported and excluding transportation, orders actually increased in June by 0.2% instead of the 0.9% decline that was originally reported.

Record low mortgage rates fueled a 5.7% rise in refinancing applications last week, following a 17.1% surge in the previous week. On a four-week basis, refinancing applications are up 26%. New purchase application also rose, but only by 0.6% in the week. The 30-year fixed rate is at 4.55%. Still to come today is the new home sales report, which will be closely watched after yesterday’s disappointing existing home sales number.

Market Notes - August 24, 2010

2010-08-24T08:40:00.000-04:00

U.S. stock index pointed to a slightly lower open, as housing data begins to take center stage.

The National Association of Realtors reports on existing home sales at 10:00 am ET. Economists expect a fairly sharp decline from the previous month. That is the only significant economic release scheduled for today, but more housing data is in store tomorrow with reports on home prices, mortgage applications, and new home sales.

Market Notes - August 23, 2010

2010-08-23T09:07:00.000-04:00

U.S. stock futures rose modestly, pointing to a higher start. There is no economic data scheduled for release today, but merger and acquisition activity continue to support markets.

Economic reports later this week will be closely watched, starting Tuesday with the existing home sales report. We will see more housing data on Wednesday with reports on mortgage applications, new home sales, and housing prices. On the same day, we will also get manufacturing data with a report on durable goods orders. Weekly jobless claims will be in the spotlight Thursday, and we will end the week with a revised GDP reading and a report on consumer sentiment.

Market Notes - August 20, 2010

2010-08-20T08:54:00.000-04:00

U.S. stock index futures pointed to a lower start, with little news influencing markets either way. Overseas markets were also lower.

There are no economic releases scheduled for today and the earnings calendar is relatively light. Yesterday, Dell and Hewlett-Packard posted good results, but that news has been overshadowed by weak economic reports. Corporate mergers and acquisitions activity has increased this week. Increasing M&A activity is usually seen as a hopeful sign for economic improvement, as businesses are willing to spend more.

Market Notes - August 19, 2010

2010-08-19T08:48:00.001-04:00

Stock futures are moving lower and Treasuries are moving higher following news that initial jobless claims rose to 500,000 last week. This was more than the 475,000 new claims expected. Week-over-week, initial claims are up 12,000, while continuing claims are down 13,000.

A report on regional manufacturing activity from the Federal Reserve Bank of Philadelphia is expected to show an increase, following a similar report from the New York Fed. The report is due at 10:00 am ET. At the same time, the Conference Board’s index of leading indicators is expected to show a small increase from the previous month.

Market Notes - August 18, 2010

2010-08-18T08:44:00.001-04:00

Stocks look set to start the day little changed after a decent rally yesterday. Strong retail earnings helped spur yesterday’s advance. The S&P 500 Index jumped 1.2%, the Nasdaq gained 1.3%, and the Dow rose 1.0%.

Record low mortgage rates fed a burst of refinancing applications last week. The refinancing index rose jumped 17.1% to its highest level since May of last year. Purchase applications fell 3.4% and the overall composite rose 13.0%. There are no other economic readings scheduled today.

Looking at earnings, Target posted higher quarterly results, helped by higher sales, and Deere also reported stronger-than-expected earnings. Applied Materials, Limited Brands, and Pet Smart report after the bell. In other corporate news, mining giant BHP Billiton said it was taking its takeover offer for Potash directly to its shareholders. On Tuesday, Potash’s board rejected BHP’s $38.6 billion bid.

Market Notes - August 17, 2010

2010-08-17T08:50:00.000-04:00

Stock futures rose early on better-than-expected earnings results from Home Depot and Wal-Mart, but futures pared gains after early economic reports.

Housing improved in July, but well short of expectations. Housing starts rose 1.7% after a sharp 8.7% decrease in June. Looking ahead, permits fell back 3.1% following a 1.6% rebound in June. A separate report showed producer prices rose by 0.2% in July, the first rise in four months. The number was in line with expectations and follows a dip of 0.5% in June. Reports on industrial production and capacity utilization will also be released today.

Market Notes - August 16, 2010

2010-08-16T08:37:00.002-04:00

Stocks appeared set to start the new week slightly lower. This week’s focus will be on manufacturing and housing.

The Empire State Manufacturing survey was released before the start of trading. The regional reading on manufacturing rose from the prior month, but was just shy of expectations. Still to come today is the National Association of Home Builders housing market index and the Treasury International Capital report. Tomorrow, retail sales, housing starts, producer prices, and industrial production are scheduled for release. Mortgage application data will be released Wednesday, and on Thursday we will see the latest jobless claims number, the Philadelphia Fed survey and the latest take on the index of leading indicators. There are no economic reports scheduled for Friday.

Market Notes - August 13, 2010

2010-08-13T09:04:00.001-04:00

Stock futures fluctuated early as traders take in a lot of economic reports. Overseas, Germany and the broader euro zone showed stronger-than-expected GDP growth. In the U.S., retail sales managed a modest increase in July after two consecutive months of decline. The Commerce Department said sales rose 0.4% last month, following a higher revised 0.3% decrease in the prior month. Excluding autos, sales gained 0.2%. The underlying trend for consumer spending is soft, but not weak enough to indicate a double dip.

Meanwhile, a rise in energy costs led to a rebound in CPI inflation, ending a three month period of declines. The core rate remained soft, rising 0.1%, while the overall rate rose 0.3%. At 9:55 am ET, the University of Michigan’s preliminary consumer reading is expected to show an increase. And at 10:00 am ET, June business inventories are forecast to have risen slightly.

Market Notes - August 12, 2010

2010-08-12T08:59:00.003-04:00

Stocks appeared set to start lower following the previous day’s sharp drop. The major indices fell more than 2.5%. Markets in Asia finished a little lower today, while European markets were mixed at mid-day.

There are only two major economic reports today. Weekly jobless claims rose, slightly more than expected. The Labor Department said new claims for jobless benefits rose 2,000 to 484,000, with the four-week average now at 473,500. In a partial offset, continuing claims fell 64,000 to 4.519 million, but some of that could be the expiration of benefits. Separately, higher oil price pushed import price up for the first time in three months. Import prices rose 0.2% in July after falling 1.3% in June and 0.8% in May.

Market Notes - August 12, 2010

2010-08-12T08:59:00.001-04:00

Market Notes - August 11, 2010

2010-08-11T09:18:00.000-04:00

U.S. stock appeared set to start the trading day lower, following suite with overseas markets.

Yesterday the Fed announced that it will start buying government bonds with money it receives from maturing mortgage backed bonds it bought during the recession. The objective is it to try to keep mortgage and corporate rates low to help grow the economy faster. The move also pushed Treasury prices higher.

On the economic front, the appetite for imported goods rose in June, but not overseas as U.S, exports fell. The overall trade deficit widened 18.8% from $42.0 billion in May to $49.9 billion in June. The growth in imports points to higher demand, but will also lead to a lower revision to second quarter GDP.

Market Notes - August 10, 2010

2010-08-10T08:14:00.001-04:00

Stocks appeared set to give back some of yesterday’s gains when the markets open this morning. U.S. stock index futures were lower as investors await the latest statement from the Federal Reserve. The Fed is widely expected to leave rates unchanged, but investors will like focus more on what the policymakers say about the recovery. The statement is expected at 2:15 pm ET.

The Labor Department will release a report on productivity and costs at 8:30 am. Meanwhile, the Commerce Department will release a reading on wholesale inventories and sales at 10:00 am ET.

Market Notes - August 9, 2010

2010-08-09T08:53:00.001-04:00

U.S. stock index futures were up markedly amid strength in Europe. The major European indices are all up in excess of 1% following news that Germany’s June exports increased a stronger-than-expected 3.8%.

There is no U.S. economic data scheduled for release today, but data will pick up tomorrow with second quarter productivity levels, wholesale inventories, and the FOMC rate decision. International trade data is scheduled for Wednesday. On Thursday we will see data on import and export prices and the weekly jobless claims number. We end the week with reports on consumer prices, retail sales, business inventories, and consumer confidence.

Market Notes - August 6, 2010

2010-08-06T09:14:00.001-04:00

Stock index futures dipped after the headline payroll number disappointed investors.

U.S. employers cut 131,000 nonfarm payrolls in July after falling a revised 221,000 in June and after a 432,000 boost in May. This months’ overall headline number was worse than the average consensus of 70,000 lost jobs, but the consensus ranged form no jobs gained or lost to 151,000 jobs lost. The weakness was largely in the government sector, which declined 202,000 of which 143,000 were consensus workers. Private nonfarm employment actually accelerated moderately to a 71,000 increase, following a 31,000 gain in June. There are other notable positives, which will likely be disregarded by the market and media. Average hourly earnings improved to up 0.2% following no change in June, and the average workweek for all workers rose to 34.2 hours in June from 34.1 hours in June. Meanwhile, the unemployment rate held steady at 9.5%.

Market Notes - August 5, 2010

2010-08-05T09:36:00.001-04:00

The futures market points to a lower start for stocks as investors digest the latest economic reports.

The Labor Department said new jobless claims rose 19,000 to 479,000. This was more than the 2,000 expected increase. Continuing claims fell 34,000 to 4.537 million. This report comes a day ahead of the government’s employment situation report. Investors will also be watching July chain-store sales for the latest signs on the health of the consumer.

Market Notes - August 4, 2010

2010-08-04T08:40:00.000-04:00

U.S. stock index futures traded slightly lower as investors took in early economic data.

Consulting firm Challenger, Gray & Christmas said planned layoffs rose in July to 41,676, but downsizing activity stayed at its lowest level since before the 2001 recession. Planned job cuts are well below the pace of last year, despite the slight recent increase. Separately, the ADP employment report showed the private sector created 42,000 jobs in July. This was slightly more than expected and follows a higher revised 19,000 jobs created in the previous month. These figures come ahead of the government’s employment situation report on Friday.

In other economic news, the demand for mortgage applications rose last week for a third straight week as rates fell. Still to come, the ISM services index is expected to have dipped from 53.8 to 53.0 in July. Any reading above 50 indicates the sector is expanding.

Market Notes - August 3, 2010

2010-08-03T08:52:00.000-04:00

U.S. stock futures were sligtly lower this morning after yesterday’s big run-up and ahead of the day’s economic reports.

Personal income and consumer spending were unchanged in June, roughly in-line with expectations. Factory orders likely dipped in June. Economists call for a 0.5% decline, which would be better than May’s 1.4% drop. The results come a day after a broader manufacturing report showed expansion in the sector in July. The report is due at 10:00 am ET. At the same time, the National Association of Realtors is expected to report pending home sales rose in June, but remains at weak levels.

Market Notes - August 2, 2010

2010-08-02T09:03:00.000-04:00

U.S. stocks appeared set to start August with gains, as overseas markets have rallied. On Friday, the markets posted their best monthly gain in over a year with major indices gaining nearly 7% each.

Earnings will continue to be in the spotlight this week, but there will also be several key economic reports due this week. Today, the Institute of Supply Management releases its July manufacturing index and there will also be a report released on construction spending. Motor vehicle sales, personal income and spending data, factory orders, and pending home sales data will be released Tuesday. On Wednesday we will see the ADP employment report and the ISM services index. Weekly jobless claims will be announce Thursday, and we end the week with the closely watched monthly employment situation report.

Market Notes - July 30, 2010

2010-07-30T09:08:00.001-04:00

Stock index futures were lower as investors digest the latest batch of earnings and the second quarter GDP report.

The Commerce Department said the gross domestic product (GDP) grew at an annual pace of 2.4% from April to June. The second quarter advance estimate came in barely below the 2.5% forecast, but the first quarter was revised higher by a full percent from 2.7% to 3.7%. This marks the fourth quarter of growth.

Market Notes - July 29, 2010

2010-07-29T08:54:00.000-04:00

Stock futures rose Thursday following further signs that Europe’s economy is bouncing back faster than expected. Earnings continue to come in strong and will likely be in the spotlight again today.

New claims for unemployment benefits fell slightly more than expected last week. Initial claims fell by 11,000 to 457,000, while the four-week moving average fell by 4,500 to 452,500. Continuing claims were up by 81,000 to 4.565 million. There are no other major economic reports scheduled today.

Market Notes - July 28, 2010

2010-07-28T08:59:00.000-04:00

Stock futures were mostly flat early, despite another batch of mostly better-than-expected earnings reports. Futures turned lower following the durable goods report.

New orders for long-lasting durable goods fell 1.0% in June, following a 0.8% drop the month before. The June results fell short of the market’s expectation for a 1.0% gain. Monthly fluctuations in durable goods orders are frequent and large. While the two most recent monthly readings are obviously disappointing, the longer-term trend is still upward. Year-over-year, durable goods orders are up nearly 16%, but this will likely be overlooked.

The Federal Reserves’ beige book, which provides a regional snapshot of the economy, is due out at 2:00 pm ET.

Market Notes - July 27, 2010

2010-07-27T08:36:00.000-04:00

Stocks appeared set to extend gains as futures got another boost from upbeat earnings announcements. Chemical maker DuPont Co. became the latest company to easily beat profit and revenue forecasts. DuPont also raised its outlook for the year. Some major European banks, including UBS AG and Deutsche Bank AG, also reported strong earnings.

The S&P / Case-Shiller home price index for May is due out this morning and is expected to have risen 4% after rising 3.8% in April. A little later in the morning, the Conference Board releases the Consumer Confidence index for July. The index is expected to have fallen from the previous month.

Market Notes - July 26, 2010

2010-07-26T08:44:00.001-04:00

Stock futures were little changed as we start the new week. The stock market climbed 3.5% last week, but there is little news this morning to influence direction.

The only major economic report on tap today is the report on new home sale at 10:00 am ET. The S&P Case-Shiller Home Price Index and the Consumer Confidence report are scheduled for tomorrow. Durable goods orders will be released Wednesday and the weekly jobless claims number is due Thursday. On Friday, we will get the first reading on second quarter GDP. The consensus calls for growth of 2.5%, but the expectations range from 1.0% to 3.4%. Also released that day are the quarterly Employment Cost Index, the Chicago PMI and the University of Michigan’s Consumer Sentiment Report. Earnings will also get attention this week, with 157 of the S&P 500 companies reporting. Earnings are currently on track to have risen 34% from a year ago.

Market Notes - July 23, 2010

2010-07-23T08:46:00.001-04:00

U.S. stocks looked set to extend yesterday’s rally, as futures got another boost from upbeat earnings reports. Microsoft, American Express, and Ford all reported earnings that beat expectations. More importantly, their results showed that businesses and consumers have increased their spending.

There are no economic reports scheduled for today. Today’s’ focus will be on earnings reports and the results of the European Union’s bank stress tests, which are due at noon.

Market Notes - July 22, 2010

2010-07-22T08:49:00.000-04:00

Another batch of good earnings reports pushed stock index futures higher before the markets opened. Caterpillar Inc., 3M Co., UPS Inc., and A&T Inc. all topped earnings forecasts and raised their outlooks for future profit. Only Travelers reported a dip in earnings as bad weather led to more claims payments. Still to come are reports from American Express Co., Microsoft Corp. and Amazon.com Inc.

On the economic front, new claims for jobless benefits rose a little more than anticipated last week. The Labor Department said initial claims rose 37,000 to a seasonally adjusted 464,000. A reading on existing home sales from the National Association of Realtors is due after the markets open. Sales are expected to have fallen to a seasonally adjusted rate of 5.09 million units in June, down from 5.66 million in May. At the same time, the index of leading economic indicators will be released. Economists expect the index to have slipped 0.4% in June after rising 0.4% in May.

Market Notes - July 21, 2010

2010-07-21T09:06:00.001-04:00

U.S. stocks were headed for early gains after a deluge of better-than-expected earnings reports boosted confidence. Among those who have beaten expectations are Apple, United Technologies, Coca Cola, US Bancorp, Wells Fargo, Morgan Stanley, and Yahoo.

There are no major economic reports scheduled for today, but Federal Reserve Chairman Ben Bernanke will testify at the Senate Banking Committee at 2:00 pm ET. Separately, President Obama is due to sign the financial reform bill at 11:30 am ET.

Market Notes - July 20, 2010

2010-07-20T08:54:00.000-04:00

Stocks were headed for a lower start this morning as growing corporate profits don’t seem enough to satisfy traders.

U.S. housing starts fell in June by 5.0% to a seasonally adjusted annual rate of 549,000. On the positive side of the report, applications for building permits rebounded, perhaps indicating a bottom for starts,

Market Notes - July 19, 2010

2010-07-19T09:16:00.000-04:00

Stocks appeared set to bounce back modestly after slumping Friday, as index futures edged higher.

Earnings and corporate outlooks will be a primary driver of trading this week since there are only a few economic reports due out. New earnings this week continue to show second quarter profits are exceeding expectations. Hasbro and Halliburton both reported higher earnings. After the close today, IBM and Texas Instruments will report. Throughout the week, 122 of the S&P 500 companies will report.

The housing market will be the focal point of the economic data this week, starting today with the National Association of Home Builders Housing Market Index. Housing starts will be released tomorrow and mortgage applications on Wednesday. On Thursday we will see a report on existing home sales and the weekly jobless claims number. There are no reports scheduled for Friday.

Market Notes - July 16, 2010

2010-07-16T08:18:00.002-04:00

U.S. stock index futures moved into positive territory this morning, after finishing with little movement on Thursday.

Among companies who have reported earnings, General Electric, Bank of America, and Citigroup had better-than-expected earrings. Google reported a sharp rise in profits after yesterday’s close, but the company missed analysts’ estimates. In other news, Goldman Sachs will pay $550 million to settle charges levied by the SEC.

A report on consumer prices comes out at 8:30 am ET. Investors will also take in the University of Michigan’s survey on consumer sentiment, due out at 9:55 am ET.

Market Notes - July 15, 2010

2010-07-15T09:06:00.001-04:00

U.S. stock futures were higher early, boosted by better-than-expected earnings from JPMorgan Chase. Google will report after the close, but investors will have plenty of economic reports to mull over before then.

New claims for unemployment benefits fell more-than-expected last week to the lowest level in nearly two years. The Labor Department said that initial claims dropped 29,000 to 429,000, while continuing claims rose. Meanwhile, the Producer Price Index showed little price pressure. The overall PPI fell 0.5% in June. Finally, manufacturing in the New York region expanded at much lower pace than expected. The Industrial Production report will be released at 9:15 am ET.

Market Notes - July 14, 2010

2010-07-14T09:07:00.000-04:00

Corporate profits again lifted stock index futures, as Intel’s upbeat earnings report boosted confidence. The chipmaker handily beat estimates with earnings, sales and margins all coming in better-than-expected, helped by strong demand from corporate customers. The company’s CEO called it their “best quarter in the company’s 42-year history” and see’s demand continuing to increase for the foreseeable future.

On the economic front, the headline retail sales number fell in June. The Commerce Department said overall retail sales shrank 0.5%, following a 1.1% decline in May. Although the headline number showed some weakness, some the components indicate the consumer is continuing to spend. Separately, U.S. import prices fell by 1.3%, led by lower fuel costs. Export prices also fell, after rising in the three previous months.

Market Notes - July 13, 2010

2010-07-13T08:53:00.000-04:00

U.S. stock index futures pointed to a higher open after Alcoa and CSX got earnings season off to a positive start by beating estimates. Intel and Yum Brands will report quarterly earnings after the close today.

On the economic front, the trade gap unexpectedly widened in May, but the report showed exports really picked up. The Treasury budget is due out at 2:00 pm ET. In other news, Moody’s downgraded Portugal’s government debt two notches to A1, but European stocks rallied, suggesting the move was anticipated.

Market Notes - July 12, 2010

2010-07-12T08:57:00.000-04:00

U.S. stock index futures were lower this morning after the major averages had their strongest week in almost a year.

Alcoa unofficially starts the earnings season by reporting today after the close, although reports will not pick up in earnest until next week. There are no economic items of significance due today, but there will be plenty to focus on starting tomorrow.

The international trade report and the Treasury budget will be revealed tomorrow. On Wednesday, we will see data on retail sales and get the latest FOMC minutes. Thursday will be busy with the Producer Price Index, the Empire State Manufacturing Index, the Philadelphia Fed Survey, a report on Industrial Production, and the weekly jobless claims. We end the week with the Consumer Price Index, the Treasury International Capital report, and the University of Michigan Consumer Sentiment Index.

Market Notes - July 9, 2010

2010-07-09T08:48:00.000-04:00

Futures were flat this morning, but the major indexes are up nearly 5% for the week. Overseas markets are up. A surprise interest rate hike in South Korea was viewed as a sign of confidence that the global economy will continue to expand.

There will be little in terms of economic news today. The only report on tap is a reading on wholesale inventories. The government report is expected to show inventories held by wholesalers rose in May for the fifth straight month. Growth in inventories is a positive sign because it means wholesalers are increasing orders from manufacturers and expecting retails to also start buying more goods to sell to consumers.

Earnings season gets underway next week, with Alcoa on Monday. Other companies scheduled to release results next week include JPMorgan Chase & Co., Bank of America, General Electric, and Intel.

Market Notes - July 8, 2010

2010-07-08T09:09:00.000-04:00

U.S. stocks rallied yesterday, with the major indexes ending 3% higher. Most foreign markets are up this morning, helped by yesterday’s momentum. U.S. stock index futures struggled to find direction this morning, but turned higher after the government said the level of jobless claims filed last week fell more than expected.

The Labor Department said the number of people filing for state unemployment benefits fell 21,000 to 454,000 last week, 6,000 fewer than expected. Meanwhile continuing claims fell to 224,000 week-over-week to 4.1 million, which is the lowest continuing claims count in almost eight months.

In other news, the Bank of England and the European Central Bank both kept their key lending rates unchanged, as expected. Separately, the International Monetary Fund raised its world growth estimate for the year to 4.6% from 4.2%.

Market Notes - July 7, 2010

2010-07-07T08:49:00.001-04:00

U.S. stock index futures have trimmed their losses, but remain under slight pressure as overseas markets gave back some of yesterday’s gains. Today is a light news day, with no economic reports scheduled.