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Aug 9, 2016

U.S. Stock Market Future Indications, by MarketWatch - August 9, 2016: Dow Poised for a Win as Sunny Mood Refuses to Fade

Sara Sjolin

U.S. stocks were set to take another stab at a record closing high on Tuesday, with futures inching up as investors stayed optimistic ahead of productivity figures and other fresh economic data.

Futures for the Dow Jones Industrial Average YMU6, +0.04%  rose 12 points, or 0.1% to 18,472, while those for the S&P 500 index ESU6, +0.02%  tacked on 1 point, or 0.1% to 2,176.50. Futures for the Nasdaq-100 index NQU6, +0.04%  gained 2.75 points, or 0.1%, to 4,782.
The small premarket gains came after a choppy session on Monday, when the S&P 500 index SPX, -0.09% and Dow average DJIA, -0.08%  both hit intraday highs during the trading session. However, a decline in health-care stocks soured the rally, leading the benchmarks to close slightly lower.
But the S&P is now just 0.09% from its record close of 2,182.87 reached on Friday, while the Dow is 0.35% off its all-time closing high of 18,595.03, hit on July 20.
“Markets have managed to hold on to the dollar strength/risk positive mood following on from the strong nonfarm-payrolls report on Friday,” said Richard Perry, analyst at Hantec Markets, in a note.
“This mood of optimism has seen a recovery in not only the dollar, but also risk appetite, that has pulled equities and commodities such as oil higher. But can these moves continue with a stronger dollar?” he asked.
U.S. nonfarm payrolls data surprised on Friday with the addition of 255,000 jobs to the economy in July, compared with the 185,000 forecast by economists polled by MarketWatch.
Economic news: More data out on Tuesday could also help illustrate the strength of the U.S. economy. The NFIB small-business index for July comes out at 6 a.m. Eastern Time, followed by productivity and unit-labor cost reports for the second quarter at 8:30 a.m. Eastern.
Economists expect a rise in productivity of 0.3%, up from a 0.6% decline in the first quarter. Labor costs are seen up 1.5%, compared with 4.5% for the first three months of the year.
A reading on wholesale inventories for June is due out at 10 a.m. Eastern.
There are no Federal Reserve speakers this week. The next big event for the central bank will be Chairwoman Janet Yellen’s appearance at the Jackson Hole conference on Aug. 26.
See: MarketWatch’s economic calendar
Movers and shakers: Shares of Resolute Energy Corp. REN, +23.70%  rallied 10% in thin premarket trade after the oil and gas company late Monday said its loss narrowed in the second quarter.
Ahead of the bell, Valeant Pharmaceuticals International Inc. VRX, +2.23%  and luxury retailer Coach Inc. COH, -1.38%  are slated to report earnings. Valeant shares rose 0.9% in after hours trade on Monday after the drugmaker relaunched a bacterial ear infection treatment that had been discontinued last year.
After the markets close on Tuesday, Walt Disney Co. DIS, -0.08%  , Fossil Group Inc. FOSL, +0.62%  and Yelp Inc. YELP, -1.86%  are slated to report.

The opening ceremony for the 2016 Rio Olympics and the first few days of competition have so far, seen a sizable drop in TV audiences compared to the 2012 Summer Games in London.
Shares in Gap Inc. GPS, -0.08%  may be active Tuesday after the clothing retailer said revenue and same-stores sales slipped in July.
Also in the frame are shares in Monster Worldwide Inc. MWW, +4.92%  , after Dutch staffing provider Randstad Holding NV RAND, -0.41%  said it has agreed to buy its rival for $3.40 a share in cash, a 22.7% premium on Monday’s closing price.
Other markets: Oil futures edged back after a sharp rally on Monday that sent crude CLU6, -0.05% and Brent LCOV6, -0.15% prices to two-week-highs.
Metals were lower across the board, while the dollar traded mixed against other major currencies. The pound GBPUSD, -0.5368%  slumped to $1.2983, after data showed the U.K. trade deficit widened in June as imports hit a record high.
Stock markets in Europe shook off opening losses and marched higher, while Asian stocks ended mostly higher after upbeat data from China