Jobless Claims Higher Than Expected


U.S. stock index futures are higher after Federal Reserve Chairman Jerome Powell yesterday in remarks prepared for delivery at the Economic Club of New York highlighted the importance of keeping monetary policy extremely easy for the foreseeable future to support the labor market.

He said recent inflation numbers eased concerns of inflationary pressures but raised questions about a slow pace of the economic recovery. Mr. Powell said the central bank will continue to support the economy with low interest rates and large asset purchases.

In addition, futures are being supported by mostly stronger than expected corporate earnings, along with optimism toward more economic stimulus.

Jobless claims in the week ended February 6 were 793,000 when 760,000 were expected.

Stock index futures continue to have upside momentum.


The U.S. dollar continued lower for a fifth day. Traders are questioning how much any new economic stimulus might permanently increase the U.S. debt burden.  In addition, Powell’s dovish comments yesterday tended to undermine the greenback.

Lower prices are likely for the U.S. dollar.

The euro currency is higher despite a report that showed the euro zone gross domestic product is set to contract by 0.9% on the quarter in the first quarter of 2021, leading the monetary union into a technical recession, according to the European Union.

The European Commission’s forecasts follow last week’s data showing the euro zone economy shrank by 0.7% in the last quarter of 2020.

Some analysts believe the slow euro zone economic recovery makes it more likely that the European Central Bank will increase the size of its quantitative easing program.

Higher prices are likely for the currency of the euro zone.


Futures are higher after Federal Reserve Chairman Powell on Wednesday indicated easy money policies will remain in place for a while.

Mr. Powell reiterated his view that “a patiently accommodative monetary policy stance” will be an important factor in returning the economy to a healthy state.

The Fed chief also repeated his call for more fiscal support for the economy, saying that monetary policy alone will not be enough to restore the labor market to full strength. “It will require a society-wide commitment with contributions from across government and the private sector.”

The Treasury will auction 30-year bonds today.

In light of the Federal Reserve pledging not to hike its fed funds rate until possibly 2023, futures at the short end of the curve are likely to hold steady.

Futures at the long end of the yield curve will likely remain in a broad trading range, as the fundamentals are now mixed.

Click here for full report

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2024 ADM Investor Services International Limited.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.