Economists are looking for 318,000 jobs to have been added, which would be lower than the 528,000 jobs in July. “A tight labor market will continue to exert inflationary pressure on wages, which in turn will drive inflation …the Fed will remain focused on fighting inflation.”īut the big news comes Friday, when the Bureau of Labor Statistics will release the August employment report. “The hard data clearly points to a still-tight labor market,” wrote Citigroup economist Andrew Hollenhorst. ![]() They came in at 232,000, below expectations and below last week’s 237,000. That could indicate strong demand for labor, which could keep inflation elevated-and the Fed serious about lifting rates. The Institute for Supply Management’s manufacturing index held steady at 52.8 in August, slightly above expectations for a reading of 51.8.īut weekly jobless claims weren’t exactly what markets had wanted. The central bank is prioritizing the fight against inflation, potentially at the expense of economic growth.Īnd more news on the state of the economy hit the wires Thursday. The pullback comes as Fed Chairman Jerome Powell said at the annual Jackson Hole Symposium that the Fed intends on lifting interest rates aggressively, rather than slowing down the pace of rate hikes. The S&P 500 came into Thursday with a four-day losing streak and is down 8% from the peak of its summer rally, hit in mid-August. The market has already been in a bad way. Traders use this information to take positions in not just the futures marketplace, but also on individual securities.Overall, “Markets still perceive good economic news as bad news when it comes to markets and the Fed,” wrote Stefanos Bazinas, execution strategist at New York Stock Exchange. The opposite is true if the Dow Futures trade higher before the market opens. ![]() If the Dow Futures are trading lower, chances are the stock market will open lower. ![]() Eastern Time), which is an hour and ten minutes before the stock market opens, allowing trading to take place so reporters and professionals can get an idea of the market sentiment. The Dow Futures begin trading on the Chicago Board of Trade at 7:20 a.m. If instead of rising, the DJIA fell from 25,000 to 24,910, the futures buyer would settle the transaction by paying the futures seller $900. The futures buyer receives a deposit in his brokerage account of $1000 from the seller. Let’s say the DJIA rises from 25,000 to 25,100. The seller makes money if the DJIA drops. A futures buyer makes money when the DJIA rises. ![]() When the DJIA rises by one point, the price of a Dow Future will increase by $10. For example, if the DJIA is trading at 25,000, the price of one Dow Future is $2,50,000. The price of one Dow Future contract is 10 times the price of the DJIA. What Are Dow Futures? What Are Dow Futures and How Do They Work?Ī Dow Future is a contract based on the widely followed Dow Jones Industrial Average. Dow Jones Futures – Premarket Stock TradingĪ futures contract is a legally binding agreement between two parties (which can be individuals or institutions) in which they agree to exchange money or assets based upon a relationship to a predetermined price of an underlying index.
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