Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: Job Creation Picks Up, Fed Statement on Its Way


All eyes are on the Fed today, and ADP showed that job creation picked up in July.

MINYANVILLE ORIGINAL Stock futures moved up today after falling yesterday as investors await the results of the Federal Reserve's policy-making meeting and economic indicators show improvements in the US job market.

Though a rate change is unlikely, there is a chance that the Federal Open Market Committee might announce another round of asset purchases. Most economists say that the Fed will not do this, but will remain open to the possibility and probably pledge to keep benchmark interest rates extremely low through the end of 2015.

In a prelude to the July employment situation report, ADP, the payroll processor, counted 163,000 new jobs in July, far more than the 120,000 expected. According to ADP, small and medium firms, especially in the services sector, are doing the bulk of the hiring.

After the unexpectedly good employment report, futures advanced further. Dow (^DJI) futures rose 0.36% to 12,996.00 and S&P 500 (SPY) futures gained 0.31% to 1,378.90. Futures on the Nasdaq (^IXIC) climbed 0.55% to 2,651.00.

The ISM Manufacturing Index is expected to show modest growth in the sector last month. The index, which will be released at 10:00 a.m. EDT, is forecast to rise to 50.1 from 49.7 in June. Manufacturing PMI in China and the eurozone unexpectedly declined slightly.

A New York federal judge ruled that the $18 billion judgement that Ecuadorian courts ruled against Chevron (CVX) for pollution in the country's rainforests is enforceable. However, the injunction against the company paying will stand, pending litigation.

Time Warner (TWX) shares declined only slightly in the pre-market after the company reported lower-than-expected earnings of $6.7 billion in the last quarter. Earnings per share were a penny above estimates at $0.59.

Societe Generale (SCGLY) reported that profit dropped by 42% after writedowns in its Russian and US asset management groups.

President Obama signed an executive order putting more sanctions on doing business with Iran, pressuring the Islamic Republic to quit its nuclear program. Under the new order, anyone buying Iranian crude in way at all -- including barter -- can be punished. Crude oil futures advanced today, with Brent contracts up 0.70% to $105.62/barrel and WTI up 0.41% to $88.47/barrel.

Twitter: @vincent_trivett
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos