Steep opening fall on claims report, global rout, safe-haven flows
Small-cap stocks tumbled to new lows on the open, pressured by a gloomy report on employment in the United States and sinking equities around the globe. Safe haven flows continue to pummel stocks as investors move money into credit products. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 11.07, or 2.68%, at 401.31.
The weekly unemployment claims report produced another sour picture of the nation’s jobs situation. More people filed for unemployment insurance last week than any previous 16 years. What’s more, the four-week moving average was at a 25-year peak and continuing claims – the number of people remaining on unemployment insurance – reached 4.012 million, the highest in nearly 26 years. When the claims report came out, stock index futures were only off about 0.5%, but tumbled to 2% losses by the opening as the market absorbed the claims numbers.
In addition to the gloomy claims report, data on manufacturing from the Philly Fed Survey came out below expectations at 39.3 and the leading indicators report came in at minus 0.8%, below the forecast for a drop of 0.6%.
Around the globe, stocks were in retreat mode once again. In Japan, the market was down 6.9% as the world’s second-largest economy reported that exports to its Asian trading partners was down for the first time in six years, yet another sign of slowing activity among emerging economies. Speaking of emerging markets, Russia and Turkey were off some 4% heading into the U.S. open, and the whitewash for emerging market equities has been brutal, with those countries down a combined 62% for the year. Elsewhere overnight, Hong Kong was down 4%, Taiwan off 4.5%, Australia off 4.1%, Singapore down 3.1%, South Korea down 6.6% and India down 3.6%.
Crude oil prices were in full retreat mode again this morning, pulling down energy and commodity stocks as well. Crude oil prices were off some $3 a barrel into the stock market open, slipping below $50 for first time since January 2007. Copper futures were limit down in Shanghai overnight; copper is seen as a barometer of . . .
The weekly unemployment claims report produced another sour picture of the nation’s jobs situation. More people filed for unemployment insurance last week than any previous 16 years. What’s more, the four-week moving average was at a 25-year peak and continuing claims – the number of people remaining on unemployment insurance – reached 4.012 million, the highest in nearly 26 years. When the claims report came out, stock index futures were only off about 0.5%, but tumbled to 2% losses by the opening as the market absorbed the claims numbers.
In addition to the gloomy claims report, data on manufacturing from the Philly Fed Survey came out below expectations at 39.3 and the leading indicators report came in at minus 0.8%, below the forecast for a drop of 0.6%.
Around the globe, stocks were in retreat mode once again. In Japan, the market was down 6.9% as the world’s second-largest economy reported that exports to its Asian trading partners was down for the first time in six years, yet another sign of slowing activity among emerging economies. Speaking of emerging markets, Russia and Turkey were off some 4% heading into the U.S. open, and the whitewash for emerging market equities has been brutal, with those countries down a combined 62% for the year. Elsewhere overnight, Hong Kong was down 4%, Taiwan off 4.5%, Australia off 4.1%, Singapore down 3.1%, South Korea down 6.6% and India down 3.6%.
Crude oil prices were in full retreat mode again this morning, pulling down energy and commodity stocks as well. Crude oil prices were off some $3 a barrel into the stock market open, slipping below $50 for first time since January 2007. Copper futures were limit down in Shanghai overnight; copper is seen as a barometer of . . .
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