By Barbara Kollmeyer, MarketWatch Strategist: 2,040 proving a
tough barrier for the S&P 500
MADRID (MarketWatch) -- Stock futures fell Wednesday, an
indicator that major indexes might struggle to log a sixth
consecutive session of record highs as European stocks and oil
prices fall.
Citigroup Inc. and J.P. Morgan Chase & Co. could come under
pressure after U.S. and other regulators slapped those banks and
three others with fines totaling more than $3 billion over
foreign-exchange manipulation.
Extending earlier losses, futures for the Dow Jones Industrial
Average (DJZ4) fell 59 points, or 0.3%, to 17,509, while those for
the S&P 500 index (SPZ4) shed 7.4 points, or 0.4%, to 2,029.50.
Futures for the Nasdaq-100 index (NDZ4) fell 12.5 points, or 0.3%,
to 4,170.75.
Volumes are expected to pick up Wednesday after bond markets and
government offices were closed Tuesday in observance of Veterans
Day. Stocks finished Tuesday's session flat, but both the S&P
500 (SPX) and the Dow industrials (DJI) recorded fifth-straight
record closes.
A roadblock for the S&P 500: Chris Beauchamp, market analyst
at IG, said 2,040 has proved to be a 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,"
Beauchamp 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, a voting member
of the Fed's policy committee, will give a luncheon talk in Eau
Clare, Wisconsin.
U.S. wholesale trade data for September, Wednesday's only
important economic data release, are 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 Susquehanna Bancshares (SUSQ) jumped 34% in premarket
trade after the company agreed to be bought by BB&T Corp. (BBT)
in a cash and stock deal valued at $2.5 billion.
Shares of Citi(C) and J.P. Morgan Chase & Co.(JPM) could see
pressure after U.S., Swiss and British regulators fined those banks
and three others $3.3 billion in total over 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)
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 remains under pressure: 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 sales tax increase.
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