Strong dollar weighs on futures ahead of data
U.S. stock index futures fell on Thursday, a day after the Federal Reserve voiced growing optimism about the economy, boosting the U.S. dollar even as interest rates stayed at historic lows.
FedEx Corp
Citigroup Inc
The Fed voted to keep interest rates at historic lows on Wednesday, but the U.S. dollar strengthened as the Fed said economic activity has continued to pick up.
Growing concerns about Greece's fiscal health weighed on the euro and further lifted the greenback. The dollar index <.DXY> jumped nearly 1 percent.
We're looking at a weaker open, and it is due to a stronger dollar causing a waning risk factor and weighing on the market, said Peter Cardillo, chief market economist at Avalon Partners in New York.
S&P 500 futures fell 8.3 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 60 points, and Nasdaq 100 futures shed 13.5 points.
Weekly initial jobless claims, leading indicators for November and the Philadelphia Fed's business index are among the economic indicators due on Thursday.
Any larger surprises (in the data) would help, but the market is beginning to convince itself the jobs market is on the mend, Cardillo said. Leading indicators could certainly be the market mover.
Bank of America Corp
Bailed-out insurer American International Group Inc
(Editing by Jeffrey Benkoe)
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