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Oct 24, 2016

U.S. Stock Market Future Indications - October 24, 2016: Maerger Monday Sets U.S. Stocks on Track For Gains

www.marketwatch.com


marketwatch.com
 
Victor Reklaitis
U.S. stock futures on Monday pointed to a higher open, getting a lift from AT&T’s planned buyout of Time Warner and other deal news.

Investors are waiting for fresh readings on manufacturing and the Chicago Fed National Activity Index, as well as earnings ahead of the open from wireless carrier T-Mobile US Inc. TMUS, -0.64%  , apparel company VF Corp. VFC, +0.68%  and Huggies diapers producer Kimberly-Clark Corp. KMB, +0.34%
Several Federal Reserve officials are also due to speak.
S&P 500 futures  ESZ6, +0.43%  gained 9.80 points, or 0.5%, to 2,144.50, while Dow Jones Industrial Average futures YMZ6, +0.41%  rose 77 points, or 0.4%, to 18,143. Nasdaq-100 futures NQZ6, +0.58%  tacked on 29 points, or 0.6%, to 4,872.25.
Last week, the S&P 500 SPX, -0.01%  gained 0.4% for the week, ending a two-week losing streak and finishing 2.2% below its mid-August record close.
“Despite strong earnings reports, U.S. indices increasingly look like they are coming under distribution, particularly the SPX 500, which appears to be completing a head and shoulders top,” said Colin Cieszynski, chief market strategist at CMC Markets, in a note. A head and shoulders pattern is a bearish chart formation.
“Part of the headwinds for stocks may be coming from continued gains by the USD, although the dollar index is starting to look exhausted,” Cieszynski added.
See: How the almighty dollar will tell you where stocks are going next
Individual movers: Shares in HBO and CNN parent Time Warner Inc. TWX, +7.82%  rose 1% in premarket action following news over the weekend that AT&T Inc. T, -3.00%  has reached a deal to buy the media company for $85 billion. The huge buyout looks set to face opposition no matter who wins the U.S. presidential election, with Donald Trump and Hillary Clinton both expressing skepticism.