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Stock Futures Plunge As Fed Prepares for Slump US Is Already In Recession

Date 9/22/2011







Stocks are set to plunge on the opening bell. In this video, we'll cover the reasons for the gap down and how to prepare trade management for September 22, 2011. We'll cover what to look for as market bottoms are put in.

S&P futures vs fair value: -31.90. Nasdaq futures vs fair value: -54.00. Negativity stemming from a global sell off has sent stock futures sharply lower this morning, positioning stocks for an extension of their late slide in the prior session.

Underwhelming data from Europe and China hasn't helped sentiment. Market participants get another dose with the latest weekly initial jobless claims count at the bottom of the hour. The monthly report on Leading Indicators is due at 10:00 AM ET.

Amid the negative sentiment, questions and concerns about global economic conditions have been revived. Of course, the ongoing threat of contagion from the corners of Europe continues to loom. In turn, commodities are being clipped aggressively this morning. Among the more widely watched resources, crude oil futures are down 4.7% to $81.90 per barrel ahead of pit trade.

Gold hasn't benefited from any kind of flight to safety; it is down 3.8% to $1740 per ounce. However, the greenback has benefited from strong buying interest; it currently leads a basket of competing currencies by 1.1%. Treasuries are also attracting plenty of bids. Buying has been so strong that the yield on the benchmark 10-year Note is now below 1.80%.

Initial Claims Level Declines, Remains Above Our "Recovery Zone" 


The initial claims level declined from 432,000 for the week ending September 10 to 423,000 for the week ending September 17. The Briefing.com consensus expected the initial claims level to fall to 418,000. There were no special circumstances affecting the jobless claims data this week. Since the week ending August 12, the initial claims level has remained above the 410,000 upper bound of our "Recovery Zone." With claims above the upper bound, payroll gains in excess of the 100,000 necessary to support a stable unemployment rate are unlikely. It would not surprise us to see the unemployment rate tick higher in September. The continuing claims level fell from an upwardly revised 3.755 mln (from 3.726 mln) for the week ending September 3 to 3.727 mln for the week ending September 10 and was in-line with consensus expectations.
 

Stocks Gapping Down List 9/22/2011


AGQ ISRG PCLN GOOG AZO CMG CRM MA AAPL WYNN TQQQ GLD AMZN CF CMI IBM FSLR BIDU CLF CRR GMCR SINA CAT DECK FFIV MOS EOG FCX  SOXL JOYG SLV 
VMW GS WAT LVS POT LULU SOHU QCOM MCP HUM OXY AXP DE HES APA BLK YNDX RIO HLF AGU GDX RVBD HANS YUM CME TZOO X  QQQ SPY MON NBL DSW ACN AEM CVX NEM SLW GG SLB LNKD UA V  XLE ABX SODA AU MMM XOM TCK BTU ACOM WLT TIF COG UNP KO GLNG HAL RL E AMT UPS USO TAL DVN TRV COF WHR TITN MCD DD BTE DO C PANL APKT WUM BIIB RCL HON ROSE SU CDE PBR GOLD DIG UTX SI SAP ERX