Stock futures indicate that the major indices might rebound
slightly after yesterday's huge losses as labor costs and housing
A report on housing starts this morning showed that builders broke
ground on homes at an annualized rate of 896,000 homes in July, up
5.9% from 846,000 in June. This was largely in line with
Second quarter non-farm productivity and labor costs both rose more
than expected. Productivity is up 0.9% after falling 1.7% in the
first quarter while unit labor costs rose 1.4% after falling 4.2%
in the first three months of the year.
US stock index futures erased only some of yesterday's losses this
(INDEXDJX:.DJI) futures were up 0.13% to 15,089 while futures
contracts on the
(INDEXSP:.INX) rose 0.25% to 1,659.80.
(INDEXNASDAQ:.IXIC) futures also gained 0.26% to 3,079.00.
Yesterday, the three indices fell 1.47%, 1.4%, and 1.72%,
respectively. The markets erased about $100 billion of wealth.
Still to come later this morning is the preliminary report on
consumer sentiment from the University of Michigan and Reuters. The
index is likely to show that sentiment rose slightly to 85.5 from
85.1 in August.
Overseas stock markets also declined on Friday. The European
Union's consumer prices guage showed that the region deflated 0.5%
over the course of July, coming in line with the previous estimate.
On a yearly basis, prices are 1.6% higher. Such persistently low
inflation gives the European Central Bank more leeway in case they
opt for even more aggressive monetary stimulus. Europe's trade
balance also came out today, showing that imports rose 2.5% over
June while exports rose 3%. Imports were 6% lower than in June 2012
and exports were down 3%.
A judge yesterday held off on allowing American Airlines' parent
(OTCMKTS:AAMRQ) from exiting bankruptcy by merging with
) due to opposition from some states and the Department of Justice.
The documents leaked by Edward Snowden that revealed that US tech
firms cooperate with America's National Security Agency to allow
surveillance of users might cause trouble for those companies
abroad. A paper by China's Ministry of Public Security is preparing
to investigate security at
according to Reuters
. China may steer away from awarding contracts to those companies
to support critical information infrastructure, much the same way
(SHE:002502) is suspected in the US.
) net profit plunged 72% due to price cutting in the second fiscal
quarter. Revenues were flat from the year earlier at $14.5 billion.
Adjusted earnings per share, Dell earned $0.25, beating forecasts
by a penny. The crucial PC division saw sales slide 5%. Currently,
founder Michael Dell is fighting other investors including Carl
Icahn to bring his company private to turn it around without the
scrutiny of the public markets.