By Anora Mahmudova and Karen Friar, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures struggled for
direction on Monday as weak Chinese factory data over the weekend
as well as looming Federal Reserve meeting this week weighed on
sentiment.
Futures for the S&P 500 (SPX) fell a point to 1,975.70,
while those for the Dow (DJI) were flat at 16,907. Futures for the
Nasdaq (RIXF) were flat at 4,062.00.
Official figures from China on Saturday showed the country's
industrial output growth slipped in August to its lowest level
since the 2008 global financial crisis, dealing a blow to companies
and economies dependent on China.
Ahead of a two-day Federal Open Market Committee meeting,
scheduled to begin Tuesday, investors are watching for signs that
the US central bank may signal the start of interest-rate hikes
earlier than expected.
Data: The Empire State manufacturing survey improved to a near
five-year high, though the details were not as strong as the
headline index, the New York Fed said Monday. Futures have not
moved after the release.
August readings on industrial production and capacity
utilization follow at 9:15 a.m. Eastern Time.
Stocks to watch: Yahoo Inc (YHOO) shares gained more than 8%
last week and are expected to remain in the spotlight as Alibaba
preps its much-hyped IPO this week. Yahoo holds roughly a 23% stake
in the Chinese e-commerce giant and intends to sell at least a
portion of those shares during the IPO, raising the prospect of a
big cash windfall. Shares were up 1.8% in premarket trade.
European and U.S. brewers were in focus after news reports of
potential financing of deals between AB InBev (AHBIY) and
SABMiller. SABMiller soared 11%, Molson Coors (TAP.NV.T) jumped
7.4%, AB InBev was up 2.8%.
Shares of Cognizant Technology Solutions Corp. (CTSH) climbed
2.8% after the IT company said it agreed to buy privately held
TriZetto Corp. for $2.7 billion in cash.
Apple Inc (AAPL) inched 0.5% higher in premarket action after
the tech company said Friday preorders for its new iPhones hit a
record, though it didn't provide details.
Netflix (NFLX) is launching in three new markets in Europe on
Monday, with initial resistance to the arrival of the
streaming-media company in France potentially alleviated by a
set-top box deal with Bouygues SA .
U.S. health-care group Danaher Corp. said Monday it will buy
Swiss dental-implant maker Nobel Biocare Holding AG in a cash deal
worth $2.1 billion.
Other markets: In Asia, stocks listed in Hong Kong fell to mark
a seventh session of losses, under pressure from the weak Chinese
data. The dollar (USDJPY) climbed against the yen to Yen107.24.
European stocks were mixed, with the Chinese data in sight. Gold
prices (GCZ4) were moving up, while oil futures (CLV4) were losing
ground.
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