Stock futures slip as Wall Street waits for a spur
New York (Nov 9) Wall Street stocks were pointing to moderate losses on Monday, as the U.S. dollar stayed firm in the wake of last week’s stronger-than-expected jobs data, which increased the odds of a Federal Reserve interest rate hike.
Dow Jones Industrial Average YMZ5, -0.29% futures fell 58 points, or 0.3%, to 17,785, while S&P 500 futures ESZ5, -0.02% dropped 7.45 points, or 0.3%, to 2,086.50. Nasdaq-100 index NQZ5, +0.17% futures fell 13.50 points, or 0.3%, to 4,689.50.
Another gain for stocks last week helped the Dow industrials DJIA, +0.26% and S&P 500 SPX, -0.03% log their longest weekly winning streak since late 2014. While up 1% for the week, the S&P 500 finished Friday’s session with a slight loss and just under the key technical support level of 2,100.
Strong jobs numbers on Friday increased the prospect of a Fed rate hike in December, with the CME Group’s FedWatch tool now pricing in the likelihood of a rise at 70%.
The data triggered a spike in the U.S. dollar, which rose to a six-month high against the euro on Friday and saw its largest weekly gain against the yen since May. On Monday, the dollar traded at ¥123.40, versus ¥123.22 in late North American trade on Friday. Against the euro, the dollar was trading at $1.0787 from $1.0744 late Friday. Some strategists say investors are far too complacent about the strong dollar.
Still, overall market reaction across Asia and emerging markets has been steady enough since the jobs news, noted Kit Juckes, global strategist at Société Générale . “The FOMC members, who have been encouraging markets to price in a December liftoff, will be encouraged, so far,” he said.
There is no first-tier data on the calendar for Monday. Boston Fed President Eric Rosengren gets a busy week for Fed speakers started with a speech on the economic outlook, at noon Eastern Time in Newport, Rhode Island.
Stocks to watch: Dish Network Corp. DISH, +0.62% Priceline Group Inc. PCLN, -0.87% and Sotheby’s BID, +4.76% will release results ahead of the bell on Monday. After the close, Hertz Global Holdings Inc. HTZ, +4.27% will report.
Berkshire Hathaway Inc. BRK.A, -0.78% BRK.B, -0.18% reported late Friday that it more than doubled third-quarter profit on an investment linked to its Kraft Heinz Co. KHC, -4.52% stake.
Retail and consumer-based companies will be in focus this week as earnings season winds down. About nine-tenths of companies on the S&P 500 have already reported earnings.
Other markets: In China, the Shanghai Composite Index SHCOMP, +1.58% rose 1.6%, climbing to its highest level since late August. Over the weekend, data showed Chinese exports in October fell a fourth straight month, and by a larger amount than economists had expected, and some analysts said that could pressure Chinese authorities into increasing stimulus.
The Nikkei 225 index NIK, +1.96% closed up nearly 2%, benefiting from a weak Japanese yen. In Europe, the Stoxx Europe 600 index SXXP, -0.39% was trading slightly lower.
Oil prices CLZ5, +1.33% rose moderately, while gold prices GCZ5, +0.48% gained 0.5%.
Source: MarketWatch
