By Barbara Kollmeyer and Victor Reklaitis, MarketWatch
Gold rallies, oil prices also higher
NEW YORK (MarketWatch) -- Stock-futures indexes pitched south on
Monday, indicating a tough return for Wall Street from a long
holiday weekend after last week's disappointing jobs data triggered
concerns about the coming corporate reporting season.
Futures for the Dow Jones Industrial Average (YMM5) fell 128
points, or 0.7%, to 17,548, while those for the S&P 500 (ESM5)
fell 13.25 points, or 0.6%, to 2,046.25. Futures for the Nasdaq-100
index (NQM5) slid 27 points, or 0.6%, to 4,280.25.
The move lower, however, essentially came in Friday's shortened
futures-trading session
(http://www.marketwatch.com/story/us-stock-futures-up-ahead-of-jobs-report-in-holiday-shortened-trade-2015-04-03),
following a weaker-than-expected jobs report for March. Regular
stock-market trading was closed for the Good Friday holiday.
Payrolls rose by just 126,000 in March, far undershooting a
MarketWatch consensus estimate of 243,000. Average hourly wages
rose 0.3% in March, but that was offset by a drop in hours worked
in the month.
Read: Fed hike in June seems remote after the jobs report
(http://www.marketwatch.com/story/after-weak-jobs-report-a-june-fed-hike-seems-remote-2015-04-03)
To some, the weak report builds a case for the Fed pushing out
an interest-rate hike even further. While such a delay would
normally be a positive for stocks, that has been overshadowed by
concerns that companies are facing difficult conditions to improve
profits.
"Earnings are expected to decline for the next two quarters, the
economy might actually have contracted in the first quarter and the
Federal Reserve is set to raise interest rates. A powerful backdrop
for equity prices this is not," said Dan Greenhaus, chief
strategist at BTIG, in a note.
Greenhaus said weak economic reports so far haven't stopped the
bull market, because corporate profits have helped keep stock
prices higher. He said investors will be watching comments from
companies for clues as to whether the market can continue to move
higher.
If companies can show the dollar's rally has been a "temporary
hiccup," and the fall in oil prices is supporting consumer
spending, such as after fourth-quarter reports, then investors will
"give them a pass. If not, a change is going to come to this bull
market," he said.
Read: Stocks pressured ahead of earnings as job creation weakens
(http://www.marketwatch.com/story/stocks-pressured-ahead-of-earnings-as-job-creation-weakens-2015-04-05)
Alcoa Inc. (AA) will provide the unofficial start of
first-quarter earnings season with its report Wednesday after the
close.
In U.S. economic news on Monday, the Institute for Supply
Management's nonmanufacturing index will be released at 10 a.m.
Eastern Time, with a reading of 56.0% expected. Also at 10 a.m., a
labor market conditions index for March is due. Before the market's
open, New York Fed President William Dudley said the stronger
dollar and lower oil prices are drags on the economy
(http://www.marketwatch.com/story/feds-dudley-says-strong-dollar-cheap-oil-are-drags-on-us-economy-2015-04-06),
but he expects growth to pick up after a weak first quarter.
Individual movers: Shares of Herbalife Ltd.(HLF) fell in
premarket action after federal law enforcement agencies reportedly
contacted top members of the company, though which members and what
officials asked of them wasn't clear.
Shares of Wynn Reports Ltd.(WYNN) could be in focus for Monday
after a proxy-advisory firm on Sunday advised shareholders to
protest governance support issues at the casino operator by voting
against all board nominees, including dissident nominee Elaine Wynn
(http://www.marketwatch.com/story/wynn-resorts-nominees-elaine-wynn-fail-to-get-proxy-advisory-firm-backing-2015-04-06).
Read more about Monday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/herbalife-sinks-on-reports-of-probe-uniqure-soars-on-bristol-myers-deal-2015-04-06)
Other markets:Gold futures
(http://www.marketwatch.com/story/gold-draws-buyers-as-stocks-drop-2015-04-06)(GCK5)
gained as investors backed away from stocks. May crude oil
(http://www.marketwatch.com/story/oil-rebounds-as-iran-exports-seen-taking-months-to-ramp-up-2015-04-06)(CLK5)
rallied as some analysts said it could take several months before
last week's Iranian nuclear deal spurs more crude supply from that
country.
The dollar (DXY) was little changed after losing ground last
week in the wake of the soft jobs report. In Asia, several markets,
including those in China and Hong Kong, were closed for a holiday,
while Japan's Nikkei 225 finished down 0.2%. European markets are
closed until Tuesday.
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