Overnight manufacturing data out of China is causing investors to take a step back assess the currently rally. Analysts are coming out saying that the Dow remains in overbought territory and there is now a downside risk. Dow futures are currently down 69 points to 12,997. Nasdaq 100 futures are down over 14 points to 2,721. The S&P 500 futures are down 8.75 points to 1,388.75.
Jobless claims continue to fall. This week’s reading came in at 348k. Claims from last week were revised up from 351k to 353k. Continuing claims dropped by 9k as people rolled off the extended unemployment benefit. The number represents the lowest level since February of 2008.
Domestic market pressure is definitely coming from overseas this morning. Last night’s Chinese manufacturing number not only showed a contraction, but acceleration of the contraction. New orders slowed to a 4-month low.
China was not the only area for concern. Data out of Europe also showed accelerating contractions. A private-sector PMI showed an accelerating contraction for March.
Commodity prices are following the major indices into negative territory this morning. Gold prices are nearly $14 to 1636.40. Nymex crude futures are negative as well, down over a dollar to $106.24 per barrel. [Read more...]