By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- Stock futures fell Monday, as investors
took in news of a deadly weekend in the Israel-Palestinian conflict
and of potentially tougher sanctions from Europe against Russia in
the wake of the downing of a Malaysia Airlines passenger jet.
Futures for the Dow Jones Industrial Average (DJU4) lost 41
points, or 0.3%, to 16,990, while those for the S&P 500 index
(SPU4) fell 4.9 points to 1,966.70. Futures for the Nasdaq-100
index (NDU4) dipped 4.75 points to 3,925.50
"We are seeing a push toward more defensive sectors [in Europe]
and expect that to follow suit when U.S. markets open," said Brenda
Kelly, chief market strategist at IG .
There are no economic events for Monday and a scant amount of
earnings, leaving investors to face down a weekend of rising global
tensions. On Sunday, Secretary of State John Kerry was caught on an
open microphone, ahead of interviews with Sunday talk shows,
criticizing Israeli's Gaza operation after the deadliest day of
fighting for both sides since the conflict began.
European threats of tougher sanctions against Russia weighed on
stocks in the region and filtered through to U.S. stock futures as
well. In an interview on NBC's "Meet the Press", Kerry said a
"buildup of extraordinary circumstantial evidence" is pointing to
Russia as the source of the missile that shot down Malaysia
Airlines Flight 17 over Ukraine, killing 298 people.
International anger is growing over the inability of experts to
reach the crash site, as bodies languish in railcars without any
clear plan as to destination. Kerry described what was happening as
"grotesque," referring to reports of "drunken separatist soldiers,
unceremoniously piling bodies onto trucks", and removing bodies and
evidence from the site.
European leaders threatened consequences against against Russia
if the Kremlin did not allow investigators free and unhindered
access to the crash site.The EU could start freezing assets of
companies and business leaders close to Russian President Vladimir
Putin as soon as Tuesday, under sanctions announced last week, The
Wall Street Journal reported.
European stocks stayed under pressure, and Russia's blue-chip
MICEX index was down 1.6%, dipping below the key 1,400 area, and
could be en route to closing below that level for the first time
since mid-May, according to FactSet. Asian markets closed
mixed.
Wall Street stocks finished last week higher, despite
volatility. The S&P 500 (SPX) and the Dow industrials (DJI)
finished the week up 0.5% and 0.9%, respectively. The Russell 2000
(RUT) lost 0.7% for the week, and analysts said investors will be
watching for more pain there. Gold (GCQ4) moved higher, while oil
(CLQ4) was also marginally up. Small caps' slump, Ukraine fears may
hold up market
Earnings reports
This is also a major week for earnings. Among the heavy hitters,
Apple Inc. (AAPL) will report Tuesday, and Boeing Co. (BA) and
Facebook Inc. (FB) will report Wednesday.
Hasbro Inc.(HAS) eased slightly in premarket after the toymaker
posted an 8% rise in revenue, but missed revenue estimates.
Halliburton Co.(HAL) rose 1.5% after the oil services company's
revenue beat forecasts and as earnings met expectations.
Also getting a lift in premarket, shares of EMC Corp.(EMC)
jumped 15% on reports Elliot Management Corp. has taken a stake of
more than $1 billion in the data-storage giant and plans to push it
toward a breakup.
Results from Netflix Inc. (NFLX)(NFLX),Texas Instruments Inc.
(TXN) and Chipotle Mexican Grill Inc. will come after the close of
regular trading. Netflix, Chipotle, TI are Monday's stocks to
watch
Joao Monteiro, analyst at Valutrades, said that Monday could
mark a period of consolidation for markets after last week's gains.
"More international action in an attempt to shift the geopolitical
agenda is inevitable, but the real uncertainty hangs over the
timing," he said in emailed comments.
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