MW: U.S. stocks: Futures inch higher as investors wait for cues
U.S. stock futures edged higher early Monday, as Wall Street tried to build on the prior week’s rally and joined European equities in shrugging off downbeat Chinese economic data.
S&P 500 futures ESU5, -0.06% rose 4.30 points, or 0.2%, to 1,964.50, while Dow Jones Industrial Average futures YMU5, -0.15% tacked on 19 points, or 0.1%, to 16,455. Nasdaq 100 futures NQU5, +0.04% added 9.70 points, or 0.2%, to 4,335.
Last week, the S&P 500 SPX, +0.45% and Dow DJIA, +0.63% gained 2.1% and 2%, respectively, as investors looked ahead to a crucial two-day meeting of Federal Reserve policy makers that starts Wednesday. The S&P, down 4.8% for the year as of Friday, has alternated between weekly gains and losses for 10 straight weeks.
Other markets: European equities SXXP, -0.31% inched higher, but Chinese stocks led Asian markets lower after data on Sunday showed that China’s factory output and fixed-asset investment were both weaker than expected in August. The Shanghai Composite SHCOMP, -2.67% closed down 2.7%. Read: Fresh China data reveal growing challenge for Beijing
Oil futures CLV5, -0.78% stepped lower as the Organization of the Petroleum Exporting Countries cut its 2015 forecast for non-OPEC oil supplies in its closely watched monthly report. The dollar DXY, +0.27% was little changed, while gold GCZ5, +0.08% gained.
Economy watch: Monday isn’t expected to offer any major U.S. economic reports. This week’s main economic news will come on Thursday, when the Fed is slated to end its two-day meeting and reveal whether it plans to raise interest rates or stay on hold.
Check out: For the first time in years, Fed decision is truly a toss up
Michael Hewson, chief market analyst at CMC Markets UK, said in a note Monday that it’s “hard to see why the Fed would risk taking action on Thursday, though it will no doubt keep its messaging consistent with respect to a possible rise later this year.”
“If on the other hand, we do get a rate rise, we could see a short term spike in the U.S. dollar, but in a classic case of ‘buy the rumour sell the fact,’ any upside is likely to be constrained by a dovish message, sending the U.S. dollar back towards its recent lows,” Hewson added.
Stock movers: Among individual stocks, Apple Inc. AAPL, +1.46% gained premarket following an upbeat story over the weekend in Barron’s, which said the tech giant’s shares may jump 50% on its new iPhone program.
But Alibaba Group Holding Ltd. BABA, +1.25% shares fell in premarket action, after a separate Barron’s story warned the Chinese e-commerce giant’s shares could fall 50%. Alibaba has responded that it takes “strong issue” with Barron’s reporting.
Solera Holdings Inc. SLH, +3.86% climbed premarket after the software company agreed to be acquired by an affiliate of Vista Equity Partners in a deal valued at about $6.5 billion.
There are no significant earnings reports on tap Monday.
Trading could be lighter in the session due to Rosh Hashanah, and market watchers may talk about the “sell Rosh Hashanah, buy Yom Kippur” trading strategy, which worked last year.
