By Barbara Kollmeyer, MarketWatch
Oil lower as investors wait for news on Iran nuke talks
MADRID (MarketWatch) -- Wall Street was setting up for a tough
trading session on Tuesday, as investors sold positions in the wake
of a winning streak in stocks and as investors reassessed their
investments ahead of what's feared to be a disappointing stretch
for corporate quarterly results.
Extending earlier losses, futures for the Dow Jones Industrial
Average (YMM5) pulled back more than 100 points, or 0.6%, to
17,757, while those for the S&P 500 (ESM5) fell 12.35 points,
or 0.6%, to 2,063.25. Futures for the Nasdaq-100 (NQM5) fell 22.75
points, or 0.5%, to 4,349.50.
Some market players attributed what was setting up to be on down
day on Wall Street after two-sessions of robust moves higher to
investors selling to solidify previous gains.
Hand-wringing over the dollar's strength and corporate
performance as a sign of the strength of the U.S. economy ahead of
the closely watched jobs report set for Friday.
"I think it is profit taking from yesterday, combined with
dollar strength and end of quarter positioning that pushes futures
down. Also, there is always some jostling for position before the
NFP [nonfarm payroll report]," said Wouter Sturkenboom, senior
investment strategist at Russell Investments in London, in emailed
comments.
Markets booked solid gains booked on Monday, which were spurred
along by dovish comments from China's central-bank chief and
corporate-deal news. Tuesday also marks the end of the first
quarter.
The S&P 500 (SPX) is set to end the first quarter up 1.3%,
which would mark its ninth-straight winning quarter. For the month
of March, the index is looking at a 0.9% loss. Among other
highlights, the Nasdaq Composite Index (RIXF) is set to log a 4.5%
gain in the quarter, the longest quarterly winning streak in its
history.
The markets are also looking ahead to a crop of Federal Reserve
speakers, along with a number of economic reports, including
Case-Shiller home prices Tuesday.
Need to Know: Don't be the 6-foot-tall man about to drown in
this market
(http://www.marketwatch.com/story/dont-be-the-6-foot-tall-man-about-to-drown-in-this-market-2015-03-31)
Analysts also noted the dollar was waking up from its slumber.
The dollar (EURUSD) rose notably against the euro on Monday as
investors waited for U.S. economic reports later in the week. That
in turn was weighing on commodity prices.
"In general, U.S. equities are in a difficult position with too
many headwinds in place, preventing a sustainable rally from
developing," added Sturkenboom.
Home prices and lots of Fedspeak: Data for Tuesday includes
Case-Shiller home prices for February, due at 9 a.m. Eastern Time,
while the Chicago-area purchasing managers index for March is due
at 9:45 a.m. Eastern. At 10 a.m. Eastern, the report on consumer
confidence for March is scheduled.
Three Fed speakers are on tap. Two are voting members on the
Federal Open Market Committee: Richmond Fed Jeffrey will speak on
the economic outlook to the Greater Richmond Chamber of Commerce at
8 a.m. Eastern, while Atlanta Fed President Dennis Lockhart will
give welcoming remarks at the Atlanta Fed conference at 8:50 a.m.
Eastern.
Cleveland Fed President Loretta Mester, a nonvoting member, will
moderate a panel on the future of banking at an Atlanta Fed
conference at 8:50 a.m. Eastern.
Stocks to watch: Shares of McDonald's Corp. (MCD) could draw
some attention after the fast-food giant said it would start
testing all-day breakfasts in San Diego in April
(http://www.marketwatch.com/story/mcdonalds-to-give-all-day-breakfast-a-try-2015-03-30).
IBM Corp. (IBM) said Tuesday it plans to invest $3 billion in a
new "Internet of Things" business that will help customers gather
and analyze data from sensor-equipped devices and smartphones.
Alongside that, it announced a partnership with the Weather Company
on data analysis for businesses.
CBRE Group Inc.(CBG) said it would buy Johnson Controls Inc.
(JCI) workplace solutions business in a deal worth $1.475
billion.
U.S. cable TV operator Cablevision Systems Corp.(CVC) is eyeing
a deal to buy the New York Daily News that would value the
newspaper at $1, Reuters reported, citing sources.
Other markets: European stocks retreated after data showed
eurozone unemployment was still above expectations at 11.3% in
February, after upward revisions to prior months. Reports
(http://www.marketwatch.com/story/greek-bailout-revision-talks-end-without-deal-report-2015-03-31)
that Greek bailout-revision talks ended without a deal also didn't
help sentiment for Europe stocks.
Asian stocks
(http://www.marketwatch.com/story/asian-stocks-end-mixed-after-previous-china-led-rally-2015-03-31)
closed on a mixed note, but the quarter produced double-digit wins
for the Nikkei 225 index and the Shanghai Composite Index .
Oil prices
(http://www.marketwatch.com/story/oil-prices-fall-as-iran-nuclear-talks-approach-deadline-2015-03-31)(CLK5)
fell as talks over Iran's nuclear talks
(http://www.marketwatch.com/story/iran-deal-put-at-risk-by-uncertainty-over-khamenei-2015-03-31)
neared a deadline and dollar strength weighed. Gold
(http://www.marketwatch.com/story/gold-weakens-for-third-straight-session-2015-03-31)(GCJ5)
marked another losing session.
Read: Oil could fall below $30 a barrel, but here's why that is
a good thing
(http://www.marketwatch.com/story/oil-could-fall-below-30-a-barrel-but-heres-why-thats-a-good-thing-2015-03-30)
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