By Barbara Kollmeyer, MarketWatch
Gold rallies, oil prices also higher
MADRID (MarketWatch)--Stock-futures indexes pitched south on
Monday, indicating a tough return for Wall Street from a long
holiday weekend after last week's disappointing jobs data triggered
concerns about the coming corporate reporting season.
Futures for the Dow Jones Industrial Average (YMM5) fell 126
points, or 0.7%, to 17,550, while those for the S&P 500 (ESM5)
fell 13.75 points, or 0.7%, to 2,045.75. Futures for the Nasdaq-100
index (NQM5) slid 31.50 points, or 0.7%, to 4,275.50.
The drop, however, essentially came in Friday's shortened
futures-trading session, following a disappointing jobs report for
March. Regular stock-market trading was closed for the Good Friday
holiday.
Payrolls rose by just 126,000 in March, far undershooting a
MarketWatch consensus estimate of 243,000. Average hourly wages
rose 0.3% in March, but was offset by a drop in hours worked in the
month.
Read: Fed hike in June seems remote after the jobs report
(http://www.marketwatch.com/story/after-weak-jobs-report-a-june-fed-hike-seems-remote-2015-04-03)
To some, the data builds a case for the Fed pushing out an
interest-rate hike even further. While such a delay would normally
be a positive for stocks, that has been overshadowed by concerns
that companies are facing tough conditions for improving
profits.
Nearly all sectors of the economy saw the pace of hiring slow in
the month.
"Earnings are expected to decline for the next two quarters, the
economy might actually have contracted in the first quarter and the
Federal Reserve is set to raise interest rates. A powerful backdrop
for equity prices this is not," said Dan Greenhaus, chief
strategist at BTIG, in a note.
Greenhaus said weak economic data so far hasn't stopped the bull
market, because corporate profits have helped keep stock prices
higher. He said investors will be watching comments from companies
for clues as to whether the market can continue to move higher.
If companies can show the dollar's rally has been a "temporary
hiccup," and the fall in oil prices is supporting consumer
spending, such as after fourth quarter reports, then investors will
"give them a pass. If not, a change is going to come to this bull
market," he said.
Read: Stocks pressured ahead of earnings as job creation weakens
(http://www.marketwatch.com/story/stocks-pressured-ahead-of-earnings-as-job-creation-weakens-2015-04-05)
Alcoa Inc. (AA) will mark the unofficial start of first-quarter
earnings season when it reports Wednesday after the close.
Two economic reports are likely to draw investor attention
Monday. The Institute for Supply Management's nonmanufacturing
index will be released at 10 a.m. Eastern Time on Monday. In
February, the data showed the service sector index grew at a
slightly faster pace. Also at 10 a.m., the labor market conditions
index for March is due.
Among Federal Reserve speakers, New York Fed President William
Dudley will give a speech on national and regional conditions in
New Jersey at 8:30 a.m. Eastern.
Stocks to Watch: Shares of Wynn Reports Ltd.(WYNN) could be in
focus for Monday. A leading proxy-advisory firm on Sunday advised
shareholders to protest governance support issues at the casino
operator by voting against all board nominees, including dissident
nominee Elaine Wynn
(http://www.marketwatch.com/story/wynn-resorts-nominees-elaine-wynn-fail-to-get-proxy-advisory-firm-backing-2015-04-06),
the former wife of the company's CEO.
Shares of Herbalife Ltd.(HLF) could come under the spotlight
after CNBC reported that U.S. federal law enforcement agencies
contacted top members of the company, though which members and what
officials asked of them wasn't clear. The company responded to CNBC
that it was cooperating with requests by authorities for a probe
into trading of the company's stock. See Ackman report on Herbalife
in China figures in probe.
(http://www.marketwatch.com/story/ackman-report-on-herbalife-in-china-figures-in-probe-2015-04-01)
Gold, oil rally: Across other markets, gold prices
(http://www.marketwatch.com/story/gold-draws-buyers-as-stocks-drop-2015-04-06)(GCK5)
soared $18 to $1,219.60 an ounce, as investors backed away from
stocks. May crude oil
(http://www.marketwatch.com/story/oil-rebounds-as-iran-exports-seen-taking-months-to-ramp-up-2015-04-06)(CLK5)
rallied 2.9% to $50.58 a barrel on the view that last week's
Iranian nuclear deal won't immediately produce more crude supply
from that country.
The dollar (DXY) steadied after losing ground last week in the
wake of jobs data. In Asia, several markets, including those in
China and Hong Kong, were closed for a holiday, while the Nikkei
225 index finished down 0.2%. European markets are closed for the
Easter break until Tuesday.
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