By Sara Sjolin, MarketWatch
Wall Street was set for a slightly upbeat day on Monday, with
stock futures inching higher in the early hours as some investors
feel more confident of a September rate hike from the Federal
Reserve.
Futures for the Dow Jones Industrial Average rose 24 points, or
0.1% to 17,345, indicating the blue-chip index will rise for the
first time in eight sessions. The Dow average on Friday logged a
seven-session losing run
(http://www.marketwatch.com/story/us-stock-futures-flat-as-traders-dont-dare-to-move-before-jobs-data-2015-08-07),
its worst streak of declines since 2011's debt-ceiling crisis. The
Dow is down 2.5% year-to-date, underperforming the other major
benchmarks.
The S&P 500 index and Nasdaq Composite Index also ended
lower on Friday, after the closely watched nonfarm-payrolls report
was seen as boosting the possibility for a Fed rate hike as soon as
next month. Futures for the S&P 500 inched 4.15 points higher,
or 0.2%, to 2,077.75 on Monday, while those for the Nasdaq 100
index gained 9.75 points, or 0.2%, to 4,528.75.
"There was enough encouragement in the detail of the [jobs]
report to suggest that the U.S. labor market is gradually
improving. Hours worked pushed higher, and full-time employment
improved, which should be enough to keep [Fed Chairwoman] Janet
Yellen on track for a first Fed rate hike in September," said
Rebecca O'Keeffe, head of investment at stockbroker Interactive
Investor, in a note on Monday.
There are no data on tap on Monday, but Atlanta Fed President
Dennis Lockhart will give a speech to the Atlanta Press Club at
12:25 p.m. Eastern Time. Last week, Lockhart suggested that Fed
policy makers are prepared to raise the Fed-funds rate in September
(http://www.marketwatch.com/story/dollar-weakens-against-commodity-linked-rivals-as-oil-rebounds-2015-08-04).
Other markets: In Asia, China's Shanghai Composite Index rallied
4.9% for its biggest one-day gain in a month
(http://www.marketwatch.com/storyno-meta-for-guid) on expectations
Beijing will maintain its market support.
European markets mostly traded lower, with resource firms adding
pressure after a round of downbeat data from China
(http://www.marketwatch.com/story/chinas-economy-enters-second-half-of-2015-on-weak-note-2015-08-09)
-- a major user of raw materials.
Oil prices (http://www.marketwatch.com/storyno-meta-for-guid)
slipped, adding to losses from last week
(http://www.marketwatch.com/story/oil-gains-but-still-on-pace-for-hefty-weekly-drop-2015-08-07),
when futures fell 6.9% to the lowest settlement level since March.
Metals prices were mostly higher, while the dollar rose against
most other major currencies.
Earnings: Reporting ahead of the opening bell, Dean Foods
Co.(DF) is forecast to report second-quarter earnings of 26 cents a
share, according to analysts surveyed by FactSet. The milk
processor unexpectedly said late Friday that Chairman Tom C. Davis
has resigned.
And it gets busier after the bell, with Kraft Heinz Co.(KHC),
burger chain Shake Shack Inc.(SHAK) and videogame company Take-Two
Interactive Software Inc.(TTWO) on the earnings docket.
Movers & shakers: Shares of Warren Buffett's Berkshire
Hathaway Inc. (BRKA) (BRKA) could be active on Monday after the
conglomerate late Friday reported its second-quarter profit fell to
$4.01 billion
(http://www.marketwatch.com/story/berkshire-hathaway-operating-income-drops-10-2015-08-07-174853111),
or $2,442 per Class A share, from $6.4 billion, or $3,889 a share,
a year earlier.
The company is also reportedly close to buying Precision
Castparts Corp
(http://www.marketwatch.com/story/berkshire-hathaway-nears-deal-to-buy-precision-castparts-2015-08-08-12103303).(PCP),
in what could be Berkshire's largest takeover ever. Precision
Castparts shares were up 16% ahead of Monday's opening bell in thin
trade.