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Poor U.S. Economic Data Pressures Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 6, 2009.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com


    Stock index futures closed lower ending a four day winning streak. The catalyst behind the weakness was an ISM report showing that the U.S. services industry contracted at a greater pace than estimated. This report revealed that the services sector was lagging behind the manufacturing sector which showed improvement earlier in the week.

    ADP reported this morning that about 350,000 U.S. jobs were lost during July. This report indicates that U.S. unemployment is likely to continue to fall. Stock traders attributed early weakness to both the bad ISM number and the loss of jobs.

    Equity markets mounted a strong recovery throughout the day but were unable to reach overnight highs. Technically, all three major U.S. indices posted closing price reversal tops, but need a follow-through break tomorrow through today’s lows to confirm the short-term top formation.

    Read FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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