By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- Stock futures pointed to a slightly
higher start for Wall Street on Monday as oil prices rose and
investors focused on whether the S&P 500 and Dow industrials
can maintain recent record highs.
Futures for the Dow Jones Industrial Average (DJZ4) rose 28
points to 17,529, while those for the S&P 500 index (SPZ4) 2.9
points to 2,028.90. Futures for the Nasdaq-100 index (NDZ4) added
11 points to 4,161.75.
The S&P 500 (SPX) closed fractionally higher at a record
level of 2,031.92 on Friday and gained 0.7% over the week, while
the Dow industrials (DJI) also closed at a record high -- the
third-straight day of records for both. That came on the heels of
data that showed U.S. jobs growth was mostly muted in October, with
a gain of 214,000 falling slightly short of analysts
expectations.
Investors will be looking for signs that markets can keep going.
Last week was the big one for macroeconomic events, with central
banks in the spotlight.
Need to Know: Stocks overvalued by 100% or a new secular bull
market?
Bank of America Merrill Lynch said in a note Friday that risk
assets should move higher in the short term as central-bank
policies and data cause investors to reduce cash going into the
year-end. But, watch gold closely, said Michael Hartnett, the
investment bank's chief investment strategist.
"A sudden gap lower in the gold prices to below $1,000/oz should
coincide with the final thrust higher in stocks, both indicating
capitulation of the 'stubborn bears', the end of the 'melt-up and
the next opportunity to get tactically bearish," said Hartnett.
Gold prices (GCZ4) hovered around $1,170 an ounce on Monday,
while crude prices (CLZ4) were legging it higher toward midday in
Europe. Crude was up 1.4%, and Brent oil was gaining nearly 2%. Oil
rose amid reports of renewed fighting in eastern Ukraine.
Stocks to watch: Investors will be looking to see if retailers
are benefiting from record levels of consumer sentiment and
confidence this week. Retail sales data is due Friday and ahead of
that plenty of individual companies will report, among them
Wal-Mart Stores Inc.(WMT) on Thursday. See: Retail earnings to test
those consumer sentiment highs
Rackspace Hosting Inc.(RAX) reports on Monday, along with
Sotheby's(BID). See Movers & Shakers
General Motors Co.(GM.XX) shares may see action after The Wall
Street Journal reported the auto maker ordered a half-million
replacement ignition switches to fix Chevrolet Cobalts and other
small cars nearly two months before it let federal safety
regulators know there was a problem.
Hong Kong stocks rally on Stock Connect: A bright spot across
global markets Monday was in Hong Kong, where the Hang Seng rose
0.8% after regulators said the Stock Connect program, which allows
individual investors outside of China to buy Shanghai-listed shares
for the first time ever, will start Nov. 17.
A batch of Chinese economic data showed in-line inflation and
export growth that slowed from a year earlier, though it beat
forecasts.
Europe stocks edged higher, while the dollar(DXY) pulled back
from recent gains in the wake of U.S. jobs data.
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