USA stock futures were pointing to a slight pullback for Wall Street at the start on Monday, as investors take a breather ahead of a Federal Open Market Committee meeting later this week and a crop of important earnings.
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At 8:36 a.m. ET, S&P 500 e-minis were down 1.5 points, or 0.07 percent, with 117,058 contracts traded.
The flow of corporate results this week serves as the backdrop for the Fed to deliver its closely followed policy statement at the conclusion of its meeting Wednesday.
On Friday, USA stocks surged as the interest rate cut by China’s central bank and the release of strong quarterly results from three tech giants ignited investor enthusiasm.
While Fed Chair Janet Yellen has said the central bank could raise rates this year, it will do so only if there are clear signs of sustained economic growth. An index of semiconductors was down two per cent after three days of gains.
FedEx is preparing for the holiday season by hiring more than 55,000 seasonal workers.
The USA dollar decreased against most major currencies on Monday as the housing data from the country came out negative. The Dow Jones Industrial Average fell 24.39 points, or 0.1%, to 17,622.31.
Energy stocks posted fresh losses, tumbling 2.5 per cent in the S&P 500 as oil prices dipped.
On the earnings front, Apple ( AAPL ), Chevron ( CVX ), DuPont ( DD ), Exxon Mobil (XOM), Merck (MRK), Pfizer (PFE), and Twitter (TWTR) are among the companies due to report their quarterly results later this week.
New home sales numbers are scheduled to cross at 10:00 a.m. ET.
Dow members ExxonMobil and Chevron lost 2.1 percent and 2.7 percent, respectively, while smaller producers ConocoPhillips (NYSE: COP – news) and Marathon Oil lost more than 3.0 percent as another drop in crude prices weighed on the sector.
Among the top Nasdaq gainers, hares of Ctrip.com was up 22.1% at $90.78 after the online travel firm said it would merge with Qunar Cayman Islands. Qunar (QUNR.O) jumped 7.9 percent to $42.65. Duke Energy fell 2.4%.
Japan’s Nikkei Stock Average closed up 0.7%, while the Shanghai Composite Index was up 0.5%, boosted by the further loosening of monetary policy in China, which was announced after local markets closed Friday.
Pep Boys (PBY.N) jumped 22.7 percent to $14.71 after it agreed to be acquired by Bridgestone (5108.T) for $15 per share.
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During the session, NYSE declining issues outnumbered advancers 1,916 to 1,153, for a 1.66-to-1 ratio; on the Nasdaq, 1,749 issues fell and 1,077 advanced, for a 1.62-to-1 ratio favoring decliners.
