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Jul 25, 2016

U.S. Stock Market Future Indications, by MarketWatch - July 25, 2016: U.S. Stock Future Retreat From Record Levels

Anora Mahmudova, Sara Sjolin

U.S. stock-index futures inched lower Monday, as investors remained cautious ahead of a busy week that will see earnings kick into high gear and more than a dozen central banks, including the Federal Reserve, hold policy meetings.

Futures on the Dow Jones Industrial Average YMU6, -0.01%  were at 18,477, while Nasdaq-100 index futures NQU6, -0.04%  slipped 1.5 point to 4,655.50.
S&P 500 index futures ESU6, -0.01%  was off by less than a point at 2,167.25, indicating the index could extend its run into record territory. The benchmark SPX, +0.46%  closed at an all-time high on Friday, boosted by a rally in the telecom and utilities sectors.
“Markets are starting off a potentially pivotal week in a cautious approach as traders choose to keep their powder dry ahead of the key risk events later in the week,” said Richard Perry, market analyst at Hantec Markets, in a note.
“With economic growth data along with the Fed and the [Bank of Japan] both announcing monetary policy in the coming days, it seems as though traders are currently reluctant to take too much of a view,” he added.
The Federal Reserve kicks off its monetary policy meeting on Tuesday and will announce its decision on Wednesday at 2 p.m. Eastern time. The central bank is widely expected to hold interest rates steady and stop short of signaling a possible rate increase in September because of continued uncertainty about the economic outlook.
Read: What to expect in the Fed statement this week
The Bank of Japan’s rate decision is due on Friday local time and will be closely watched for any hints of more easing in the face of a stronger yen post Brexit and a slowdown in the economy. In total, 15 central banks are scheduled to meet this week.
There were no Fed speakers or major economic data releases on tap in the U.S. on Monday.
Earnings: In earnings, however, Monday was shaping up to be a busier day. Sprint Corp. S, +0.43%  rose 3.3% premarket after the telecommunications company reported fiscal first-quarter revenue that beat expectations.
Kimberly-Clark Corp. KMB, +0.95%  inched up 0.3% ahead of the bell after the consumer-products company reported earnings avenue ahead of Wall Street expectations.
Danaher Corp. DHR, -0.06%  gained 2.8% ahead of the bell after reporting a 17% rise in revenue.
Gilead Sciences Inc. GILD, +0.44%  and Express Scripts Holding Co. ESRX, +0.34% are slated to report after the market closes.  
Movers and shakers: Verizon Communications Inc. VZ, +1.32%  rose 0.2% after confirming it has agreed to buy Yahoo Inc. for $4.83 billion. Shares of Yahoo YHOO, -0.46%  slipped 0.8% after being halted earlier in the morning news.
Read: Wall Street braces for feeding frenzy of earnings, central bank meetings Inc. AMZN, +0.06%  advanced 0.6% after Wedbush Securities lifted the price target on the stock to $835 from $775.
Other markets: Stocks in Asia closed mostly higher, while European markets also advanced for the most part.
The dollar dropped against most rival currencies, with the ICE Dollar Index DXY, +0.02%  down 0.1% at 97.404. Oil futures CLU6, -1.56% LCOU6, -1.36%  dropped and gold GCQ6, -0.57%  and most other metals declined.