By Sara Sjolin, MarketWatch
Bullard says markets could have a new "tantrum"
LONDON (MarketWatch) -- U.S. stock futures pointed to a slight
pullback 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 27
points, or 0.2%, to 18,006, while those for the S&P 500 (ESM5)
lost 2.95 points, or 0.1%, to 2,096.25. Futures for the Nasdaq 100
(NQM5) dropped 4 points, or 0.1%, to 4,443.25.
The declines come after a volatile week, when the big mood
swings in the market were 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's 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 is not 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: The Chicago Fed national activity index for
February is due at 8:30 a.m. Eastern Time, followed by
existing-home sales at 10 a.m. Eastern. Economists polled by
MarketWatch expect an annualized rate of 4.94 million home sales,
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 2.4% ahead
of the bell after Deutsche Bank cut the cruise-operate to hold from
buy.
On a more upbeat note, shares of Yahoo Inc.(YHOO) jumped 8.3%
premarket, although there appeared to be no major news on the tech
giant.
Other markets: Crude oil (CLK5) dropped sharply, 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) was largely
flat around 97.91.
Stock markets in Europe 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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