STOCK INDEX FUTURES
There was only limited strength late yesterday when Alcoa Inc. reported earnings that topped analysts' estimates. Third quarter earnings were 9 cents a share, which compares to the median estimate of 5 cents a share. In addition, they increased their prediction for aluminum consumption to up 13% from their previous expectation of a 12% increase. Alcoa is traditionally the first of the Dow Jones Industrial companies to report earnings and is considered the bellwether for the rest of the earnings season.
Prices quickly fell when the headline nonfarm payroll number showed a larger than expected decline. However, prices were able to recover and trade higher after it was reported that much of the decline was due to widespread government layoffs.
September nonfarm payrolls were down 95,000, which compares to an estimate of a 5,000 decline and private payrolls were up 64,000, when a 75,000 increase was anticipated. The unemployment rate unexpectedly held steady at 9.6%, which compares to the median guess of 9.7%. (more)
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