Before the bell: Futures higher after jobs data

Posted Sep 24th 2009 7:35AM by Melly Alazraki
Filed under: Before the Bell, International Markets, Market Matters, Economic Data, Oil, Federal Reserve

U.S. stock futures declined Thursday morning, seemingly continuing Wednesday's drops after the Federal Reserve didn't come out with a convincing statement regarding the economic recovery and gave investors a reason to pause ahead of more employment and housing data. Meanwhile, world leaders are set to meet.

[Update: Stock futures changed direction after both initial and continuing claims came in lower and are now pointing to a higher start.]

In the two-day G-20 summit beginning Thursday, President Barack Obama is expected to tell world leaders that the global economy cannot continually rely on huge borrowing and spending by Americans and massive exports by countries such as China.

Meanwhile, China faces new trade complaints from a U.S. labor union and three paper companies, possibly fueling tensions between Washington and Beijing again as the disputes over tires and other goods hasn't been resolved yet.
Overseas, world stock markets fell Thursday as investors worried that support measures for the fragile global economy will be withdrawn too quickly. Oil prices dropped below $69 a barrel Thursday, after an unexpected jump in U.S. crude inventories suggested consumer demand remains weak.

Economic data today includes weekly initial and continuing jobless claims due out at 8:30 a.m. Eastern. Economists expect a slight uptick in initial claims from the previous week. At 10:00 a.m., the National Association of Realtors will report August existing home sales, which are expected to rise to an annualized rate of 5.35 million, according to Briefing.com.

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