Futures Slip After Obama Jobs Speech
Futures were lower Friday, after President Barack Obama introduced a $447 billion plan to boost jobs on Thursday but did little to reassure concerns about the tepid economic growth.
The jobs plan "will provide a jolt to an economy that has stalled and give companies confidence that if they invest and hire, there will be customers for their products and services," Obama said in an address to Congress Thursday evening.
However, the bill's chances of passing Congress are uncertain. Republicans control the House and many of them oppose any new spending.
The program is a credible attempt to address structural obstacles to growth and employment, but it remains to be seen how effective it will be, Mohamed El-Erian, CEO and Co-CIO of Pimco, wrote in an op-ed for CNBC.com.
Meanwhile, renowned bear Marc Faber slammed Obama's jobs package, calling it "another complete failure of Keynesian economics."
President Obama is scheduled to speak again Friday on his jobs creation program in Richmond, Va. at 11:40 am ET.
In corporate news, Bank of Americais discussing cutting 40,000 jobs in the first wave of a restructuring program that seeks to cut the bank's workforce, the Wall Street Journal reported. Meanwhile, Baird cut its price target on the bank to $11 from $12.
Yahoo jumped after the Internet company hired UBS and Allen & Co. to help it navigate a period in which it is dealing with an activist shareholder and trying to determine ways it can enhance value, according to people close to the company.
Texas Instruments slipped after the chipmaker slashed its sales and profit outlook, citing "broadly lower demand across a wide range of products, markets and customers." In addition, at least two brokerages cut their price targets on the firm.
Apple edged higher after a German court upheld a ban preventing rival Samsung from selling its Galaxy 10.1 tablets in Europe's biggest economy.
McDonald's slipped after the fast-food giant's August sales missed expectations.
Meanwhile, NYC officials said they would immediately increase security measures after U.S. officials learned of a possible terror threat associated with car and truck bombs on the 10th anniversary of the Sept. 11 attacks this weekend.
In Europe, stocks were trading lower as G7 officials will meet in France later Friday, under pressure to find a solution to the long-drawn debt crisis in the euro zone.
Banks in Europe were trading lower after Goldman Sachs cut the price targets for major European financial institutions, saying they may need to raise capital if governments impose haircuts on their sovereign debt holdings.
In China, inflation pulled back in August from a three-year high, while economic activity slowed, underlining expectations the central bank can hold off on further monetary policy tightening in the face of a global economic slowdown.
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On Tap Next Week:
MONDAY: 3-Yr note auction, Fed's Fisher speaks
TUESDAY: NFIB small biz optimism index, import & export prices, 10-yr note auction, Samsung/MSFT tablet unveiled; Earnings from Best Buy
WEDNESDAY: Weekly mortgage apps, PPI, retail sales, business inventories, oil inventories, 30-yr bond auction, Microsoft analyst meeting
THURSDAY: CPI, Empire state mfg survey, jobless claims, current account, industrial production, Philadelphia Fed survey, credit card default rates reported; Earnings from Pier 1, Research In Motion
FRIDAY: Treasury international capital, consumer sentiment, quadruple witching
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