By Barbara Kollmeyer, MarketWatch Strategist: 2,040 proving a
tough barrier for the S&P 500
MADRID (MarketWatch) -- Stock futures eased back on Wednesday,
indicating that Wall Street could struggle to log a sixth session
of record highs for major indexes, with Europe stocks and oil
prices dropping.
Citigroup Inc. and J.P. Morgan Chase & Co. could come under
pressure after U.S. and other regulators slapped those and three
other banks with fines totaling more than $3 billion over
foreign-exchange manipulation.
Futures for the Dow Jones Industrial Average (DJZ4) fell 36
points, or 0.2%, to 17,532, while those for the S&P 500 index
(SPZ4) eased 4.3 points, or 0.2%, to 2,031.70. Futures for the
Nasdaq-100 index (NDZ4) fell 10.5 points, or 0.3%, to 4,172.75.
Volumes were expected to pick up after the Veterans Day holiday
closed bond markets and government offices on Tuesday. Stocks
finished the session generally flat, but 5th-straight record closes
were still managed for both the S&P 500 (SPX) -- 2,039.68 --
and the Dow industrials (DJI) -- 17,614.90.
A roadblock for the S&P 500: Chris Beauchamp, market analyst
at IG, said 2,040 is proving a big barrier for the S&P 500.
"Technical indicators still point to a market that is overbought
and looking to pause for breath, with the quieter mid-November
period providing an ideal time for a brief consolidation," he said
in a note. (Also see: Charting a strong bull trend with room to run
http://www.marketwatch.com/story/charting-a-strong-bull-trend-with-room-to-run-2014-11-11-12103813.)
Philadelphia Fed President Charles Plosser said interest rates
should be raised "sooner rather than later," repeating a familiar
message. In a speech in London, he said rising rates aren't
inconsistent with a continuing recovery. Plosser is a voting member
of the Fed policy committee.
Minneapolis Fed President Narayana Kocherlakota, also a voting
member, will give a luncheon talk in Eau Clare, Wisconsin.
Wholesale inventories for September is the only piece of data on
offer, due at 10 a.m. Eastern.
Need to Know: Santa rally is on track, barring another euro
crisis
Retailers, banks in the spotlight:Macy's Inc.(M) will report
earnings on Wednesday. Shares of Fossil Group Inc.(FOSL) rose 8% in
thin premarket trade after the company topped expectations with
third-quarter results and renewed a licensing agreement with
Michael Kors Holding Ltd. (KORS).
Shares of Citi(C) and J.P. Morgan Chase & Co.(JPM) shares
could see pressure after U.S., Swiss and British regulators fined
those banks and three others $3.3 billion in total to resolve
allegations they tried to manipulate the foreign exchange market.
Read: "Have that my son", "Bravo" -- chat logs from FX probe
revealed (and it's no boring read)
Oil stays under pressure: Bank stocks fell in London, with
shares of HSBC Holdings PLC (HSBC) -- among those banks fined over
currency manipulation -- down 0.7%. Asia stocks largely rose, with
the China Shanghai Composite Index gaining 1% to close at an almost
three-year high.
Oil prices came under pressure again, with WTI crude (CLZ4)
dropping 0.8% as the market continued to fret about oversupply.
Gold prices (GCZ4) were flat and the dollar(USDJPY) held on to the
Yen115 level as the market awaited news on whether Japan will delay
a planned rise in the sales tax.
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