Stock Market News: Dow Set to Open Down as China Traders Return
U.S. stock futures were pointing to losses early on Monday, looking set to give back some gains from late last week when a strong jobs report eased concerns over a recession. The move contrasts with gains in Chinese stocks.
Dow Jones Industrial Average futures were down 196 points, or 0.5%. S&P 500 futures were down 0.5% and Nasdaq 100 futures were falling 0.7%. The Dow rallied to another record high on Friday after an unexpectedly strong U.S. jobs report.
“Risk appetite took a hit thanks to mounting geopolitical risk in the Middle East, even as the macro data turned decisively more positive. That was particularly evident from Friday’s US jobs report, with fears of a recession continuing to decline,” wrote Deutsche Bank analyst Jim Reid in a research note.
However, Hong Kong’s benchmark Hang Seng Index rose 1.4%. Traders appeared to be anticipating that Beijing could unveil additional fiscal stimulus in the near term, as the country returns from a weeklong National Day holiday on Tuesday.
This week the major macroeconomic focus will be Thursday morning when the Bureau of Labor Statistics will release the consumer price index for September. Economists’ consensus calls for a 2.3% increase from a year earlier.
The yield on the benchmark 10-year Treasury note stood at 3.985% early on Monday, ticking up from the previous week.
Among individual stocks, Pfizer will be in the spotlight after activist investor Starboard Value took a $1 billion stake in the pharmaceutical company according to a Wall Street Journal report late on Sunday.
This week’s notable earnings include PepsiCo’s report on Tuesday, Delta Air Lines and Domino’s Pizza on Thursday, and reports from banks starting Friday, including JPMorgan and Wells Fargo.