By Anora Mahmudova and Sara Sjolin, MarketWatch
Bullard says markets could have a new "tantrum"
NEW YORK (MarketWatch) -- U.S. stock futures pointed to a
sluggish open on Monday after solid gains last week, with investors
watching for comments from Federal Reserve members and waiting for
the latest health check on the housing sector.
Futures for the Dow Jones Industrial Average (YMM5) fell 4
points to 18,029, while those for the S&P 500 (ESM5) dipped a
point to 2,097. Futures for the Nasdaq-100 (NQM5) were off by a
point to 4,446.
The stock market's volatile action last week was fueled by fresh
comments from the Federal Reserve about raising interest rates. The
central bank dropped its reference to being "patient", but also
said it is in no hurry to tighten policy
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18).
The Dow average (DJI) and S&P 500 index (SPX) posted their
biggest weekly gains since early February, while the Nasdaq-100
index (RIXF) mustered its biggest rally since October last
year.
Fed speakers: Monetary policy was in the spotlight, with St.
Louis Federal Reserve President James Bullard telling CNBC Monday
that the dovish statement from last week may have misplaced
investor expectations about the first rate hike. Bullard also said
the market could throw another "tantrum"
(http://www.cnbc.com/id/102525889) with the Fed possibly raising
rates later this year.
Cleveland Fed President Loretta Mester was speaking in Paris
Monday morning. Mester, who isn't a voting member of the
policy-setting committee this year, said the central bank can do
more
(http://blogs.wsj.com/economics/2015/03/23/feds-mester-fed-needs-further-refinements-of-forward-guidance/?KEYWORDS=mester)
at helping guide the market in terms of rate moves.
At 12:20 p.m. Eastern time, Fed Vice Chair Stanley Fischer gives
a speech about "monetary policy lessons and the way ahead" to the
Economic Club of New York, while San Francisco Fed President John
Williams speaks in Sydney, Australia at 10 p.m. Eastern. Fisher and
Williams are both voting members of the FOMC.
Economic data: Existing-home sales data are due at 10 a.m.
Eastern. Economists polled by MarketWatch expect an annualized rate
of 4.94 million home sales in February, up from 4.82 million in
January, which was the lowest level in nine months
(http://www.marketwatch.com/story/existing-home-sales-slow-to-9-month-low-in-january-2015-02-23).
Stocks to watch: Shares of Carnival Corp.(CCL) fell 2.3% ahead
of the bell after Deutsche Bank cut the cruise-operator to hold
from buy.
Tenet Healthcare Corp.(THC) gained 1.4% premarket on news the
company is creating a $2.6 billion joint venture
(http://www.marketwatch.com/story/tenet-healthcare-to-create-26-bln-joint-venture-with-united-surgical-2015-03-23)
with United Surgical Partners International.
Gilead Sciences Inc.(GILD) dropped 2.7% after the drug maker on
Friday warned health-care providers
(http://www.bloomberg.com/news/articles/2015-03-21/gilead-warns-after-hepatitis-patient-on-heart-drug-dies)
that nine patients taking its hepatitis C drugs Harvoni or Sovaldi
along with the heart treatment amiodarone developed abnormally slow
heart beats and one died of a heart attack, according to
Bloomberg.
Shares of Kansas City Southern (KSU) dropped 2.3% in premarket
trade Monday, after the railroad company lowered its 2015 sales
growth outlook.
For more on notable movers read Movers & Shakers column
(http://www.marketwatch.com/story/tenet-climbs-after-deal-news-carnival-slides-on-broker-downgrade-2015-03-23).
Other markets: Crude oil (CLK5) prices fell, paring back after
scoring its first weekly gain in five weeks
(http://www.marketwatch.com/storyno-meta-for-guid).
Metals were also mostly lower, although high-grade copper (HGK5)
bucked the negative trend. The ICE dollar index (DXY) fell to
97.50.
Stock markets in Europe
(http://www.marketwatch.com/storyno-meta-for-guid) declined, with
investors waiting for the latest developments in Greece's reform
negotiations. Greek Prime Minister Alexis Tsipras is scheduled to
meet German Chancellor Angela Merkel later on Monday.
Asian markets closed mostly higher
(http://www.marketwatch.com/storyno-meta-for-guid).
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