Before the bell: Futures lower ahead of employment, GDP data

Posted Jun 25th 2009 7:45AM by Melly Alazraki
Filed under: Before the Bell, International Markets, Market Matters, Bank of America (BAC), Economic Data

U.S. stock futures edged lower Thursday morning, as markets still looked for direction following the Federal Reserve's statement Wednesday that was somewhat mixed. This morning, investors await jobs and GDP data, as well as Fed chairman Ben Bernanke's testimony over the Bank of America (BAC)-Merrill Lynch deal.

Bernanke will testify before the House Committee on Oversight and Government Reform Thursday to face questions over his role was in the Bank of America (BAC) purchase of Merrill Lynch. Documents uncovered by The Wall Street Journal indicate he may have been more involved than he admitted, prompting some membersto say that the Fed "engaged in a cover-up.

Two main economic releases are due at 8:30 a.m. Eastern, before the opening bell. The Labor Department will release its weekly report on initial jobless claims, and economists believe claims for unemployment benefits declined. At the same time, the government's final reading on first-quarter GDP growth will be released, and economists expect no change. The economy has likely shrank at an annual rate of 5.7%

Overseas, Asian shares had advanced after the Fed stated that it would keep interest rates low for a period of time. China's central bank pledged to keep pumping money into the financial system to support a recovery in the world's third-biggest economy. European stock markets fell modestly Thursday as the early enthusiasm dissipated amid concerns that borrowing costs may rise sooner than many investors were predicting.

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