A trader looks at his screen on the floor of the New York Stock Exchange June 29, 2010. Investors fled the U.S. stock market on Tuesday and the S&P 500 tumbled to its lowest level in eight months in a sell-off triggered by a wave of increasing alarm over the global economic outlook. REUTERS/Brendan McDermid (UNITED STATES - Tags: BUSINESS)

A trader looks at his screen on the floor of the New York Stock Exchange June 29, 2010. Investors fled the U.S. stock market on Tuesday and the S&P 500 tumbled to its lowest level in eight months in a sell-off triggered by a wave of increasing alarm ... over the global economic outlook. REUTERS/Brendan McDermid (UNITED STATES - Tags: BUSINESS) (Reuters)

Futures Slip as Traders Mull Jobs, BofA

By Markets FOXBusiness

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U.S. stock futures slid into the red as traders mulled President Obama's plan to rekindle the stalling economy, and reports that Bank of America is considering slashing thousands of jobs. 

Today's Markets

As of 9:03 a.m. ET, Dow Jones Industrial Average futures fell 65 points to 11,154, S&P 500 futures slipped 8.5 points to 1,172 and Nasdaq 100 futures slumped 12.8 points to 2,200. 

Wall Street has been particularly volatile in recent days, making triple-digit moves for the last five-straight sessions as market participants have grappled with a dimming global economic outlook. 

President Barack Obama unveiled his plan to boost the ailing U.S. labor market before a joint session of Congress on Thursday evening.  The plan, which is expected to provide roughly $447 billion in spending increases and tax cuts, was larger than the $300 billion many analysts had expected.  

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A key component of the plan is a cut of payroll taxes paid by employees in 2012. The purpose of the cuts, according to a research note published by Barclays Capital, is to "offer an incentive to employers to either raise wages or hire new workers." In total, tax cuts will equate to $253 billion of the package, with the other part made of of spending increases, according to an analysis by economists at Goldman Sachs

The President, who has yet to lay out the specifics of the plan, said repeatedly it would be paid for by making other offsets elsewhere. However, analysts that follow developments in Washington have noted that the plan may be face significant political challenges in a very much divided Congress.  In particular, the spending increases are expected to face a high level of political scrutiny during a time where many lawmakers believe the country should focus on deficit reduction. 

Also on the jobs front, Bank of America (BAC) is considering slashing as many as 40,000 jobs as part of its restructuring efforts, according to a report by The Wall Street Journal. The biggest U.S. bank by assets, which has seen its stock plunge 46% this year, has been trying to operate more efficiently and shed excess costs. 

The Federal Reserve has also been a major focus on Wall Street.  Federal Reserve Chairman Ben Bernanke made a speech on Thursday, coming short of suggesting the central bank will provide another round of quantitative easing, but setting up the case for further easing.  The Fed's policymaking board will have a two-day meeting starting on September 21, in which members of the Federal Open Market Committee are expected to discuss unconventional methods of quantitative easing.  

The Fed is in a challenging position because short-term interest rates, its usual policymaking tool, are already essentially at 0% -- as low as they can go.  Many economists at large investment banks expect the Fed will reinvest proceeds from short-term bonds on its balance sheets into longer-term assets, a method of stimulus the central bank has never before used. 

The only major economic release on tap for Friday is wholesale inventories.  Inventories are expected to have ticked higher by 0.8% in July, after climbing 0.6% the prior month. 

Energy markets were sharply lower in morning trading, tracking a stronger dollar.  Light, sweet crude fell $1.12, or 1.3%, to $87.95 a barrel.  Wholesale RBOB gasoline dipped 4 cents, or 1.3%, to $2.85 a gallon. 

The U.S. dollar climbed 0.45% against a basket of world currencies, while the euro fell 0.37% against the greenback. 

Foreign Markets

The English FTSE 100 fell 0.73% to 5,302, the French CAC 40 slid 1.4% to 3,044 and the German DAX slumped 1% to 5,353. 

In Asia, the Japanese Nikkei 225 dipped 0.63% to 8,738 and the Chinese Hang Seng slipped 0.23% to 19,866. 

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