Futures Lower After Last Week's Big Gains
NEW YORK (
) -- Stock futures pointed to a lower open Monday following the previous week's big gains brought by a Republican takeover of the House, the
Federal Reserve's
plan to buy $600 billion of long-term securities and better-than-expected job growth in October.
Futures for the
Dow Jones Industrial Average
were down by 14 points, or 36 points below fair value, at 11,362. Futures for the
S&P 500
were 3 points lower, or 4 points below fair value, at 1219 and
Nasdaq
futures were down by 5 points, or 4 points below fair value.
Stocks flattened Friday as the market weighed October job growth of 151,000 against an unchanged unemployment rate of 9.6%.
The major U.S. indices finished the event-filled previous week at fresh two-year highs. Although this week looks light in comparison -- particularly with no economic reports scheduled for release on Monday -- Thursday marks the beginning of a
two-day G-20 summit in South Korea that could impact the U.S. dollar. Leaders in emerging-market countries have been particularly critical of the Fed's plan for another round of quantitative easing as their local currencies have gotten a boost from increased fund flows. The U.S., meanwhile, is expected to use the meeting to put more pressure on China to revalue its currency.
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The U.S. dollar strengthened against the euro but gave up ground against the yen. The dollar index was up by 0.7%.
Overseas, Hong Kong's Hang Seng increased 0.4% and Japan's Nikkei soared 1.1% on strong results from the auto industry. The FTSE in London shed 0.4% and the DAX in Frankfurt declined by 0.2%.
AOL
(AOL)
hired financial advisors to explore strategic options for the company -- including a possible tie-up with
Yahoo!
(YHOO)
, according to a
Wall Street Journal
report.
Quantas'
CEO said tests found
oil leaks in three
Rolls-Royce
engines on
Airbus
A380s that were grounded following an engine failure on one of the carrier's jumbo jets last week.
Ashland
(ASH) - Get Report
agreed to sell its global distribution business to
TPG Capital
for $930 million.
Chrysler
hiked its year-end guidance to an operating profit of $700 million from its previous outlook of break-even to $200 million. Net sales are now expected to hit $42 billion, compared with previous forecasts for between $40 billion and $45 billion.
In commodity markets, the December crude oil contract lost 27 cents, to trade at $86.58 a barrel. Meanwhile, the December gold contract shed $5.30 to $1,392.40 an ounce.
The benchmark 10-year Treasury note was unchanged with a yield of 2.539%.
After the closing bell Monday,
Clear Channel Outdoor
(CCO) - Get Report
is expected to post a loss of 2 cents a share,
Eagle Bulk Shipping
(EGLE) - Get Report
is expected to report a profit of 8 cents a share, and
LDK Solar
(LDK)
is expected to report a per-share gain of 43 cents.
--Written by Melinda Peer in New York
.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
