April 09, 2012- Stocks Trade Lower on Weak US Jobless Report

The major U.S. index futures are pointing to a lower opening on Thursday, with futures paring back their losses after the release of the U.S. jobless claims report, which showed that claims fell to their lowest level in about four years. Commodities are rebounding after the sell-off seen in the previous two sessions. Given the apprehensions concerning the course of the economy, especially ahead of tomorrow’s non-farm payrolls data, some consolidation around current levels is the most likely outcome. U.S. stocks ended Wednesday’s session sharply lower, as economic fears spooked the overbought markets. The major averages opened lower as the previous session’s negative sentiment generated by fading stimulus hopes lingered and a Spanish debt auction received a lukewarm response. Thereafter, the averages declined steadily till late morning trading before moving sideways. Although the indexes pared some of their losses in the afternoon, they ended notably lower. The Dow Industrials ended down 124.80 points or 0.95 percent at 13,075 and the S&P 500 Index closed 14.42 points or 1.02 percent lower at 1,399, while the Nasdaq Composite retreated 45.48 points or 1.46 percent before closing at 3,068. Technically, the markets are looking to break below the supporting trend-line for the first time since mid-December 2011 with a strong Declining momentum providing advanced warning that markets are going lower.