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U.S. equity futures moved lower again Monday while the dollar extended gains against its global peers, as investors looked ahead to a busy Wall Street week that includes a key inflation reading and the start of the fourth-quarter-earnings season.
The S&P 500 snapped a nine-week winning streak at the close of trading on Friday, its longest since 1989, following a stronger-than-expected December jobs report and a notable move higher in Treasury bond yields that looks to test the market’s thesis on near-term rate hikes from the Federal Reserve.
Treasury yields are likely to be in focus again this week as investors await a $37 billion auction of 10-year notes Wednesday and a $21 billion sale of 30-year bonds the following day, as well as December consumer-price-inflation data slated for Thursday at 8:30 a.m. U.S. Eastern Time.
Benchmark 10-year notes were last seen little changed from Friday’s close at 4.048% while 2-year notes traded at 4.381% in the early New York session.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.05% higher from Friday’s close at 102.461.
JPMorgan (JPM) – Get Free Report will lead a parade of big-bank earnings Friday to kick off the start of the fourth-quarter-earnings season. Analysts are looking for collective S&P 500 profits to rise 5.2% from a year earlier to a share-weighted $457.2 billion.
Investors are also likely to track developments in Washington this week after congressional leaders agreed to broad terms of a $1.59 trillion spending deal that could avert a partial government shutdown.
House members will need to pass the detail bill by Jan. 19, with a larger deadline looming on Feb. 2, to avoid yet another debt-and-spending standoff in Washington.
Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500, which fell 1.5% last week, are indicating a 5 point opening-bell decline to start the session.
Futures tied to the Dow Jones Industrial Average, meanwhile, are priced for a 160 point decline thanks to an 8% slump for Boeing (BA) – Get Free Report, which suffered a major incident with the fuselage of an Alaskan Airlines 737 Max aircraft on Friday.
The tech-focused Nasdaq is called 6 points lower.
In overseas markets, Europe’s Stoxx 600 was marked 0.31% lower in early Frankfurt trading while Britain’s FTSE 100 fell 0.37% in London.
Overnight in Asia, stocks in China neared the lowest levels in five years amid deepening concern over the fate of its post-covid recovery and the government’s ability to kickstart growth. That pulled the regionwide MSCI ex-Japan benchmark 0.91% lower into the close of trading.
The Nikkei 225 in Japan was closed for the country’s annual Old Age Day holiday.
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