By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures pointed to a slightly
lower open for Wall Street on Monday after a heady two-week run,
following weak manufacturing data out of China.
Meanwhile, the dollar surged past 113 Japanese yen.
Futures for the S&P 500 index (SPZ4) fell 1.3 points to
2,010.20, while those for the Dow Jones Industrial Average (DJZ4)
fell 19 points to 17,292. Futures for the Nasdaq-100 (NDZ4) lost
3.25 points to 4,147.25.
The S&P 500 (SPX) and Dow industrials (DJI) closed in record
territory on Friday, getting a fresh push after the Bank of Japan
surprised markets with an unexpected stimulus plan. The S&P has
climbed 7% over the past two weeks, its best two-week showing since
March 2011. But stocks around the world were pulling back on Monday
after factory activity in the world's second-largest economy hit a
five-month low in October.
Earnings support stocks: While U.S. stocks caught a good
tailwind from more central-bank stimulus, Dan Greenhaus, chief
strategist at BTIG, said in note that earnings should help stocks
to maintain gains. Earnings are growing at a nearly 10% pace, and
revenue is up 4% to 5%, beating expectations, based on the nearly
375 S&P 500 companies that have reported, he noted.
"As we've said for several quarters now, that is pretty darn
good and should be enough to support higher stock prices," he
said.
Analysts said markets will be keeping a close eye on midterms,
with a survey by The Wall Street Journal/NBC News showing
Republicans could control Congress by a slim margin after Tuesday's
balloting.
Data due out Monday includes the October Markit purchasing
managers index at 9:45 a.m. Eastern Time. At 10 a.m., the Institute
for Supply Management will release its October survey, while
construction spending for September will be released at the same
time. Reports on October car sales are expected throughout the
morning.
Charles Evans, the president of the Chicago Federal Reserve, is
expected to give opening remarks at a Fed conference on
infrastructure and growth at 9:30 a.m. Eastern.
Looking further ahead, this is the week for the monthly U.S.
jobs report, due Friday. On Thursday, markets will be watching a
meeting of the European Central Bank.
Stocks to Watch: Shares of Sapient Corp. (SAPE) could get a
boost premarket. French advertising group Publicis SA announced a
$3.7 billion-all-cash deal to buy the U.S. company. Publicis will
pay $25 for each Sapient share, which represents a 44% premium to
the closing price of Sapient on Oct. 31.
Apple Inc. (AAPL) is planning an investor call on Monday ahead
of a potential bond sale, The Wall Street Journal reported, citing
a banker working on the deal.
Argentina has banned Procter & Gamble Co. (PG) from doing
business in that country, alleging that the consumer products giant
has committed tax fraud, media reports said Monday. The company
told the BBC it was working to understand and resolve those
allegations.
Sysco Corp. (SYY) will report ahead of Monday's stock open,
while Herbalife Ltd. (HLF) and AIG Inc. (AIG) report after the
close.
Dollar above Yen113: The dollar (USDJPY) shot 1% higher against
then yen on Monday, trading around Yen113.39, while gold (GCZ4)
continued to drift lower and oil (CLZ4) inched up. Europe stocks
drifted lower across the board, while Asia markets were mixed, but
Tokyo was shut for a holiday.
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