Signs of slowing growth and the possibility that surging oil prices will create additional economic headwinds sent stock prices lower early Monday.
Index futures recently showed the
trading 5 points below fair value, while the Nasdaq 100 was set for an 8-point decline. The 10-year Treasury bond, which saw its price surge Friday after a weak April employment report, fell 4/32 in price to yield 5.01%, while the dollar eased against the yen and euro.
Oil prices jumped after Iran's Ayatollah Ali Khamenei threatened to cut off crude supplies if the West uses force to stop his country's nuclear research. In electronic Nymex trading, July crude, which jumped to a three-week high on Friday as the employment report soothed interest-rate concerns, was up another $1.37 to $73.70 a barrel.
U.S. stocks ended mixed Friday after the May payroll addition of 75,000 jobs badly missed forecasts. Over last week's four sesssions, the
Dow Jones Industrial Average
gained 31 points to 11,248, while the S&P 500 rose 8 points to 1288 and the
rose 9 points to 2219.
Overseas markets were mostly lower Monday, with London's FTSE 100 down 0.2% to 5756 and Germany's Xetra DAX losing 1.1% to 5624. In Asia, Japan's Nikkei fell 0.8% overnight to 15,668, while Hong Kong's Hang Seng added 0.7% to 16,016.
Most commodity prices were higher. Copper rose 3 cents to $3.62 a pound, silver added 24 cents to $12.32 an ounce, and gold rose $8.10 to $649.10 an ounce. Gold producer
was upgraded at Citigroup to buy from hold.
Monday's economic docket features the Institute for Supply Management's nonmanufacturing index for May, which is expected to fall to 60.1 from 63 in April. In Washington,
Chairman Ben Bernanke will speak at a panel discussion with his European and Japanese central bank counterparts.
To view Ana Dane's video take on today's premarket action, click here
Tuesday will see speeches from Kansas City Fed President Thomas Hoenig and Fed Governor Susan Bies, while Wednesday features a talk on the economy from Atlanta Fed President Jack Guynn. The Commerce Department releases a report on the April trade deficit on Friday.
Saturday and Sunday saw a crush of clinical data from a cancer conference in Atlanta, including positive results in a breast-cancer trial for
Tykerb and in lung- and kidney-cancer trials for
( WYE) temsirolimus also performed well in a phase three trial in renal-cell carcinoma.
With stocks sputtering, Wall Street defended several names that could see action Monday. Prudential raised its rating on
to overweight from neutral, while Piper Jaffray upgraded