Russell 2000 ready to slip
The Russell 2000 (NYSE: IWM) futures are sagging and the small-cap index will likely open lower despite good employment news.
The number of American workers filing for unemployment benefits fell to the lowest level in seven weeks, the U.S. Labor Department said. Initial jobless claims for the week ended Sept. 15 fell 9,000 to 311,000, while economists were expecting a more modest decline of 6,000.
The labor market has come in focus as fears of an economic slowdown have increased in the past few weeks. Today’s numbers show that the labor market remains strong.
Bearish news is coming out of financial services giant Bear Stearns Companies Inc. (NYSE: BSC), which reported that its quarterly profit fell a whopping 61% due to its investment in securities backed by subprime mortgages.
On the other hand, investment bank Goldman Sachs Group, Inc. (NYSE: GS) announced that its quarterly earnings soared 79%.
Elsewhere, U.S. Federal Reserve Chairman Ben Bernanke spoke to Congress this morning. The Fed chief told the House Financial Services Committee that the contagion from the subprime mortgage meltdown has spread throughout financial markets and could have negative consequences for the overall economy.
