Not meeting analyst- predicted consumer spending report caused Wall Street to open flat on Thursday.
November spending was 0.3% more said the Commerce Department. Analysts estimated an increase of 0.5% after October’s 0.4% hike. This consumer spending which covers about 70% of U.S. economic activity was the basis for the economic trend.
Meanwhile the Labor Department said for the first time, there were less people applying for unemployment benefits. The fall was 3,000 to a seasonally adjusted 420,000 agreeing with Wall Street estimates. Applications for unemployment at 425,000 weekly are a slight job growth, according to economists. However, there has to be a claims drop of less than 375,000 to signify unemployment decline.
In eight months, the Commerce Department has it that November orders for long shelf-life goods sans transportation rose the highest. Investors will see the housing market today and will give November new homes sales report.
Prior to opening, Dow Jones industrial average futures dipped 9 points (0.1%) to 11,486. S&P’s 500-stock index futures fell 2.4 (0.2%) to 1,252.10. Nasdaq 100 futures had a fall of 6.75 (0.4%) to 2,229.25.
Volume is seen to thin out on Thursday, the last trading day prior to Christmas break.
Overseas shares showed Asian stock indexes falling slightly. There was a hike for less than 0.1% for Euro Stoxx 50 index – tracker for blue chip firms using euro. Japanese markets did not open for the holiday.
A slight dip was seen on bond prices as the 10-year Treasury note yield rose late Wednesday from 3.35 to 3.38.