Services Matter
Stock index futures are down following the release of
the National Association of Purchasing Managers- Non-manufacturing
report. The report came in at a four-year low, the lowest since the
statistic has been tracked.Â
Traders are comparing the report to the NAPM
manufacturing and determining that such a poor showing in services will have
a negative effect back on manufacturing. Services account for about 4/5ths
of economic activity. A report out on jobless claims remains above 400,000
and shows there is a nine-year high in people receiving unemployment
benefits.Â
The overall effect is the perception of a weaker
economy, rather than a possible economic bottoming. Stock index futures are
down and bonds are rallying as the odds for another interest rate cut are
increased.
Nasdaq 100 futures
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from the New 10-Day Low List,
are down sharply with the Naz futures undercutting the spring lows for a
second session. The S&Ps appear poised to trade below their spring lows
as well.Â
Also from the
New 10-Day Low List,
Canadian dollar
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PowerRating) are trading lower.