Equity Index Futures Rise On Higher Layoffs And Unemployment Claims
(Thursday Market Open) Equity index futures are pointing to a higher open as signs of weakness in the labor market may let the Fed take their proverbial foot off the economic brake. Potential Market Movers Earlier this week, the JOLTS job openings were higher than expected but lower than the previous month. This morning the Challenger Jobs Cuts report saw an uptick in corporate layoff announcements and the initial jobless claims also came in higher than expected. Equity index futures rose after the Challenger report as a possible indicator that tomorrow’s Employment Situation report may be weaker than the consensus for 250,000 jobs added during June. Though it may seem odd to see job losses as good news, the overheated hiring market has led to wage inflation and weaker corporate earnings. But signs that the labor market is weakening, and inflation is abating could prompt the Fed to be less aggressive in future rate hikes. It’s news that appears to be helping investor confidence. The Cboe Market Volatility Index (VIX) was lower once again this morning testing its recent lows around the 26.5 level.
Equity Index Futures Rise On Higher Layoffs And Unemployment Claims
(Thursday Market Open) Equity index futures are pointing to a higher open as signs of weakness in the labor market may let the Fed take their proverbial foot off the economic brake. Potential Market Movers Earlier this week, the JOLTS job openings were higher than expected but lower than the previous month. This morning the Challenger Jobs Cuts report saw an uptick in corporate layoff announcements and the initial jobless claims also came in higher than expected. Equity index futures rose after the Challenger report as a possible indicator that tomorrow’s Employment Situation report may be weaker than the consensus for 250,000 jobs added during June. Though it may seem odd to see job losses as good news, the overheated hiring market has led to wage inflation and weaker corporate earnings. But signs that the labor market is weakening, and inflation is abating could prompt the Fed to be less aggressive in future rate hikes. It’s news that appears to be helping investor confidence. The Cboe Market Volatility Index (VIX) was lower once again this morning testing its recent lows around the 26.5 level.