Despite the recovery from a serious dip today, the European exchanges took an absolute beating on the news of no action from the ECB. The German DAX going down 2% and the French CAC dropping a whopping 2.8%!
I think we are at a bottom here given the oversold nature of this market as well as the impressive recovery today, but time will tell. We are certainly due a sizable bounce at least.
U.S. stocks finished little moved on Thursday, with smaller companies rebounding after dropping into corrective mode the prior day, as investors mulled an unexpected drop in weekly jobless claims ahead of the monthly payrolls report.
President Barack Obama spoke about the economy in a speech Thursday afternoon from suburban Chicago, saying the United States is making more progress than other countries.
U.S. data had the number of Americans filing claims for unemployment benefits unexpectedly dropping last week, falling by 8,000 to 287,000. The report comes a day before the September jobs report.
Less positive was a 10.1 percent drop in factory orders in August, with the number worse than the estimated 8.7 percent decline.
Stocks had fallen sharply during Thursday’s session after the European Central Bank held interest rates unchanged, and ECB President Mario Draghi saying the central bank would purchase assets for two years or more to lift inflation and increase economic growth.
And, International Monetary Fund Managing Director Christine Lagarde said the IMF would cut its forecast for potential growth, with only a modest pickup expected in 2015.
After finishing more than 10 percent down from its record on Wednesday, leaving it in correction territory, the Russell 2000 erased Thursday losses and turned positive.
8:30 a.m.: Employment report
8:30 a.m.: International trade
10:00 a.m.: ISM nonmanufacturing
News Sources: CNN Money & CNBC