Stock futures moved lower on Monday morning, suggesting equities would retreat from records at the opening of trading, after a terror attack in London over the weekend.
S&P 500 futures were down 0.1%, Dow Jones Industrial Average futures slid 0.11%, and Nasdaq futures declined 0.11%. Wall Street largely overlooked weaker-than-expected U.S. jobs growth in May on Friday, with major benchmark indexes closing at records for the second day in a row.
Seven people have died and 50 more have been injured in a terrorist attack near the busy London Bridge Station in the center of the British capital late Saturday, Metropolitan Police have confirmed. Police said three men drove a white transit van at high speed toward London Bridge just after 10 p.m. local time, deliberately targeting pedestrians before continuing to the busy restaurant and pub district of Borough Market, which was packed with revelers enjoying the unusually warm summer Saturday evening.
"Enough is enough," U.K. Prime Minister Theresa May said in a statement. "There is far too much tolerance of extremism in our country ... we cannot and must not pretend that things can continue as they are." May said the general election would take place as scheduled on June 8, though campaigning was suspended for the day.
President Donald Trump reacted to the terror attack by criticizing London Mayor Sadiq Khan and railing against "political correctness." In a series of tweets, Trump said, "We need to be smart, vigilant and tough. We need the courts to give us back our rights. We need the Travel Ban as an extra level of safety!" The White House had previously asked for Trump's twice-blocked travel "ban" to be reviewed by the Supreme Court.
First-quarter productivity was left unchanged, while unit labor costs weakened from a previous estimate. U.S. productivity over the first three months of the year was down 0.6%, while output was increased to 1.7% from a previous 1% estimate. Hours worked increased to 1.7% from 1.6%, while unit labor costs fell to 2.2% growth from 3%.
The economic calendar in the U.S. on Monday also includes the PMI Services Index for May at 9:45 a.m. EDT, Factory Orders for April at 10 a.m., and the ISM Non-Manufacturing Index for May at 10 a.m.
Hargreaves reduced his view on Apple to sector weight, from a previous rating of overweight, and thinks the stock could fall by $10 over the next year. Apple shares close Friday at $155.45.
TheStreet's Jim Cramer noted the unusual downgrade on his Twitter account early Monday, and in particular questioned the timing of the move, which comes just ahead of Apple's Worldwide Developers Conference, which begins Monday.
Time Warner (TWX) shares were on watch after its film Wonder Woman topped the domestic box office over the weekend. The DC comic book film earned $100.5 million in its debut weekend, the best opening in the U.S. for a female-directed movie.
Herbalife (HLF) was lower on Monday after increasing its current-quarter adjusted profit guidance, but lowering sales forecasts. The company anticipates earnings between 95 cents and $1.15 a share over its current quarter, up from a previous target of 88 cents to $1.08 a share. However, sales are expected to come in 1.5% below previous estimates. Herbalife cited the transition to the new FTC rules in the U.S. along with softness in its Mexico business as reason for lower-than-anticipated revenue.
Forestar (FOR) jumped 12% in premarket trading after homebuilder D.R. Horton (DHI) proposed to purchase a 75% stake in the company for $520 million, or $16.25 a share. The purchase price represents a 14% stake over an existing merger agreement between Forestar and investment firm Starwood Capital Group.
Tempur Sealy (TPX) increased 1% before the bell after reporting a positive sales update for the first two months of its second quarter. Excluding Mattress Firm, orders across all brands over the first two months of the quarter increased 7%. North America sales increased 15% in May, driven by a 28% surge in orders for Tempur-Pedic products.
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