US stock futures dip, but monthly rises in sight
New York (July 31) US stocks on Friday eyed gains for the past week and month, even as stock futures pointed to a dip at the open and analysts warned about the potential for end-of-the-month choppiness.
Earnings from energy giants Exxon Mobil and Chevron could provide a spark, and investors also await fresh readings on consumer sentiment and Chicago-area business conditions.
S&P 500 futures ESU5, -0.16% were last down 4.70 point, or 0.2%, to 2,099, while those for the Dow Jones Industrial Average YMU5, -0.13% declined by 33 points, or 0.2%, to 17,653. Nasdaq 100 futures NQU5, -0.15% pulled back by 10 points, or 0.2%, to 4,585.25.
The benchmark S&P 500 SPX, +0.00% is on track for a weekly advance of 1.4% and a July rise of 2.2% as of Thursday’s close. The Dow DJIA, -0.03% is on pace for weekly and monthly gains of 1% and 0.7%, respectively, while the Nasdaq COMP, +0.33% is up 0.8% for the week and 2.9% for July.
On Thursday, the U.S. stock market finished about flat after erasing early losses.
What strategists are saying: “Today, traders need to be cautious; as we approach the end of the month the markets may experience notable volatility due to month end flows,” said Nour Al-Hammoury, chief market strategist at ADS Securities, in a note Friday.
Other markets: Chinese stocks SHCOMP, -1.13% closed lower and notched their biggest monthly drop in nearly six years, while European equities SXXP, -0.12% seesawed but were poised for weekly and monthly gains.
Oil prices CLU5, -1.71% fell on Friday, with the commodity set to post its worst monthly showing of the year so far. Gold futures GCZ5, -0.81% were also lower, and the dollar DXY, -0.14% weakened.
Economic reports: Investors are watching for a reading on July business conditions in the Chicago area that’s due at 9:45 a.m. Eastern, as well as a figure for consumer sentiment that’s expected at 10 a.m.
The employment-cost index for the second quarter is due at 8:30 a.m.
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Movers & Shakers: Before the open, Exxon Mobil Corp. XOM, -0.16% is projected to report second-quarter earnings of $1.11 a share, according to a FactSet survey of analysts.
Also ahead of the bell, Chevron Corp. CVX, -0.24% is forecast to post second-quarter earnings of $1.15 a share, and Royal Caribbean Cruises Ltd. RCL, -1.39% is likely to deliver second-quarter earnings of 73 cents a share.
Coca-Cola Enterprises Inc. CCE, -1.65% jumped nearly 9% in premarket action for the S&P 500’s biggest gains following news it’s in merger talks with other Coke bottlers.
Expedia Inc. EXPE, +0.69% was another big S&P advancer, rising 8% premarket after its quarterly earnings topped forecasts late Thursday, while Hanesbrands Inc. HBI, +1.19% fell almost 7% after quarterly revenue missed estimates.
Source: MarketWatch
