By Victor Reklaitis, MarketWatch
Tyson, Clorox likely to see active trade on earnings
U.S. stocks looked on track to edge lower at the open Monday, as
sentiment was hurt by another drop by Chinese stocks, offsetting
mostly positive action by European equities.
While Greece's stock market plunged as trading reopened,
investors in other markets appeared to take that largely in stride.
U.S. investors also will watch for fresh readings on inflation,
personal income and manufacturing, plus earnings from companies
like Tyson and Clorox.
S&P 500 futures were last down 1.40 points, or 0.1%, to
2,097, while those for the Dow Jones Industrial Average dipped by 7
points, or less than 0.1%, to 17,607.
Nasdaq 100 futures shed 5 points, or 0.1%, to 4,580.
On Friday, the S&P 500 closed down 0.2%
(http://www.marketwatch.com/story/us-stocks-sp-eyes-2-rise-for-month-but-month-end-volatility-seen-2015-07-31),
dragged lower by the energy sector, but the benchmark gained 1.2%
for the week and 2% for the month.
The benchmark stands about 1.3% off its record close in May,
having traded in a narrow range for several months. More
range-bound trading, or "numbness
(http://www.marketwatch.com/story/golds-fire-sale-offers-refuge-on-feds-bumpy-road-to-rate-hikes-2015-07-31),"
as a recent Need To Know column called it, could be ahead until
Friday, with investors staying on the sidelines as they wait for
the monthly U.S. jobs report due that day.
What strategists are saying: "Over the past few months, the U.S.
equity markets have been undulating inconclusively between 2050 and
2130.'" said Sam Stovall, U.S. equity strategist for S&P
Capital IQ, in a note released Monday. He isn't that upbeat about
what could happen this month.
August historically has been "among the worst performing
months," and some indicators suggest more volatility ahead, Stovall
said. Investors also "have been in a 'risk-off' mindset since the
final new high was established in May."
"Another month has gone by, and U.S. equities are still awaiting
a resolution to their nine-month trading range," said Jonathan
Krinsky, chief market technician for MKM Partners, in a note
Sunday.
He said the difference between the top- and worst-performing
industries in the S&P 500 continues to grow. "At some point,
this divergence needs to be rectified, but for now the beat goes
on," Krinsky wrote.
Read: 'Pipsqueak' Greece gets slammed, fueling fears over U.S.
markets
(http://www.marketwatch.com/story/get-ready-for-us-bubble-to-burst-as-pipsqueak-greece-gets-slammed-2015-08-03)
Other markets: Asian shares closed lower Monday
(http://www.marketwatch.com/story/asian-markets-fall-as-chinese-factory-data-prompts-jitters-2015-08-03)
after disappointing Chinese manufacturing data and a continued
slide in commodity prices. European equities mostly gained
(http://www.marketwatch.com/story/european-stocks-edge-up-greek-index-slides-as-trading-resumes-2015-08-03)
even as Greek stocks plunged as trading resumed in Athens
(http://www.marketwatch.com/story/greek-stock-market-dives-after-trading-resumes-2015-08-03).
Crude-oil futures were showing a sizable drop
(http://www.marketwatch.com/story/oil-falls-to-4-month-low-hit-by-data-on-china-rigs-2015-08-03),
while gold dipped and the dollar was little changed.
Economic news: June figures for U.S. personal income and
spending are due at 8:30 a.m. Eastern Time, with economists polled
by MarketWatch expecting a rise of 0.3% in each case. A reading on
core inflation in June is due at the same time.
A July reading for Markit's purchasing managers' manufacturing
index is expected at 9:45 a.m. Eastern, followed by releases at 10
a.m. Eastern for June construction spending and for July data for
the Institute for Supply Management's manufacturing index. See:
As for Federal Reserve speakers, Fed Gov. Jerome Powell is
scheduled to give a speech on the liquidity of the Treasury bond
market at 10:50 a.m. Eastern.
Movers & Shakers: Before the opening bell, Tyson Foods
Inc.(TSN) is forecast to post fiscal third-quarter earnings of 92
cents a share, according to analysts polled by FactSet.
Also ahead of the open, Clorox Co.(CLX) is expected to report
fiscal fourth-quarter earnings of $1.37 a share.
Car makers like Ford Motor Co.(F) and General Motors Co.(GM)
could make moves on Monday as July reports for U.S. auto sales roll
out.
Read more in MarketWatch's Movers & Shakers column
(http://www.marketwatch.com/story/aig-tyson-clorox-earnings-in-focus-2015-07-31)
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