daytrades dec 10 pre-market , page-2

Thanks HLL,

US market results (10 min charts)





http://www.businessspectator.com.au/bs.nsf/Article/US-STOCKS-Futures-rise-as-Treasuries-steady-jobs-d-BYGPG?OpenDocument&src=hp5

Reuters

NEW YORK - The S&P 500 and the Nasdaq rose slightly after encouraging data on the jobs market, but gains were limited by a stronger US dollar.

The Labor Department said the four-week moving average for claims for unemployment benefits slipped to a two-year low, reviving hopes a labour market recovery is under way.

But the Dow was pressured by major manufacturer DuPont after it gave a lacklustre outlook for 2011. Blue-chip Exxon Mobil also slipped due to the strong dollar.

"Today is a good day to be relatively weak, considering we had a three per cent rally in the first three days this month," said Frank Gretz, market analyst and technician for Shields & Co, a brokerage in New York.

"Typically the month of December is strong at the beginning and strong at the end, and there is a lot of bullishness around."

Investors said they remained bullish for a year-end rally. The CBOE Volatility Index VIX, a barometer of Wall Street anxiety, fell more than one per cent to 17.56, its lowest level since April. The VIX usually moves inversely to the benchmark S&P index.

Technical signs and a forecast from an international bank suggested a positive outlook for US stocks.

The S&P 500 rose above 1,228, a resistance level that represents the 61.8 per cent Fibonacci retracement of the 2007-2009 bear market slide, a key technical indicator.

"We look for a sustained move above 1230-35 to get the next leg higher in the post-2009 bull trend under way," Credit Suisse said in a report. The investment company raised its 2011 outlook on the benchmark index to 1,350 from 1,223.

The Labor Department data showed first-time claims for jobless benefits fell more than expected last week, and the report was viewed as positive after last week's disappointing payrolls figures.

But offsetting gains, the dollar gained 0.4 per cent against major currencies and the euro fell after Ireland's Labor Party said it will vote against a financial bailout package before parliament.

Equities and the euro have moved in tandem of late with the currency seen as a proxy for sovereign debt risk.

DuPont slipped 1.5 per cent to $US48.14 after the company gave earnings guidance for next year. Analysts' expectations fell in the middle of the range.

Exxon Mobil was down 0.6 per cent at $US71.43.

Financial stocks outperformed other sectors with Bank of America up 2.6 per cent at $US12.31 and JPMorgan Chase gaining 1.2 per cent to $US40.74.

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Reuters

WASHINGTON - New US claims for unemployment benefits fell more than expected last week and the four-week moving average slipped to a fresh two-year low, reviving hopes a labour market recovery was under way.

Initial claims for state unemployment benefits dropped 17,000 to a seasonally adjusted 421,000, the Labor Department said on Thursday, below economists' expectations for 425,000.

"It's another report that suggests the monthly employment numbers that we got last week probably understated the position in jobs, and it's another number that suggests we're going to get some upside surprises in economic activity," Commonfund chief economist Michael Strauss said.

The government's employment report last week showed employers added a mere 39,000 jobs in November and the jobless rate rose to 9.8 per cent from 9.6 per cent.

A separate report from the Commerce Department on Thursday showed wholesale inventories rose 1.9 per cent in October, while sales increased at the fastest rate in seven months, adding to optimism about a healthy holiday shopping season.

Stocks on Wall Street opened higher on the jobless claims report, while prices for US government debt raced to session highs. The US dollar trimmed gains versus the euro.

The surprisingly small gain in employment last month had blurred the labour market picture and the bigger-than-expected drop in new claims should strengthen perceptions a durable recovery is under way.

The tepid economy and jobs markets are expected to receive a boost from a deal struck by the Obama administration and Republican lawmakers on Monday to maintain all Bush-era tax cuts through 2012, extend emergency unemployment benefits and cut employee payroll taxes by 2 per centage points.

In a sign that a gradual labour market healing was firmly entrenched, the four-week average of new jobless claims, viewed as a better measure of underlying labour market trends, fell 4,000 to 427,500, still the lowest since early August 2008.

Both initial claims and the four-week average have now held below the 450,000 level for five straight weeks. The 450,000 mark is generally considered by economists as the level consistent with job growth.

"The change coincides with a modest improvement in small firms' sentiment and the end of the contraction in bank lending to commercial and industrial companies," High Frequency Economics chief US economist Ian Shepherdson said.

"This is not an accident, in our view. Small firms, which employ half the work force, have been hamstrung by tight credit. If claims continue to drift down it would be reasonable to expect better payroll numbers very soon."

The number of people still receiving benefits under regular state programs after an initial week of aid fell 191,000 to 4.09 million in the week ended November 27, the lowest since mid-November 2008, from 4.28 million the prior week.

Economists had expected so-called continuing claims to dip to 4.25 million from a previously reported 4.27 million.

The number of people on emergency unemployment benefits fell 233,032 to 3.71 million in the week ended November 20, the latest week for which data is available. A total of 8.30 million people were claiming unemployment benefits during that period under all programs.

Emergency benefits for four million people which were due to expire by February are now set to be extended.

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