U.S. Stock Market Future Indications - August 22, 2016: Dow Futures Dip as Buyers Dither Until Yellen Speaks
U.S. stock futures signaled a dip at the open Monday, as a drop in oil prices outweighed deal news.
S&P 500 futures ESU6, -0.21% fell by 4.70 points, or 0.2%, to 2,177, while Dow Jones Industrial Average futures YMU6, -0.27% lost 52 points, or 0.3%, to 18,488. Nasdaq-100 futures NQU6, -0.20% shed 10.25 points, or 0.2%, to 4,796.75.
Analysts said the week largely looks set to be quiet until a closely watched speech by Federal Reserve chief Janet Yellen at the central bank’s summer retreat. In her Friday morning speech in Jackson Hole, Wyo., Yellen may indicate the Fed is ready to raise interest rates as soon as next month.
“The markets currently have March priced in for the next rate hike, and if Yellen is seriously determined to move earlier, she must take advantage of Friday’s opportunity to drive that message home,” said Craig Erlam, senior market analyst at Oanda, in a note.
“The rest of the week is expected to be rather quiet,” Erlam added.
Company news: Drug giant Pfizer Inc.PFE, -0.60%confirmed it plans to buy biotech Medivation Inc.MDVN, +19.79% , in a move aimed at adding a leading prostate-cancer drug to Pfizer’s portfolio. Pfizer’s stock dipped 0.3% in premarket action, while Medivation jumped 20%.