After a slow but modest rise on Monday while UK And Japanese markets were closed, US markets are expected to slip back on Monday before trade data which is expected to show a wider deficit and highlight the problems associated with a strong dollar.
After disappointing manufacturing data last week, markets will be looking to the service sector with the latest ISM non-manufacturing survey on Tuesday. A big piece of the puzzle on when the Fed will hike rates this year, if at all, will beFriday’s unemployment report. Weaker data in other parts of the economy will either confirm a weak print or detract from a stronger print in NFP.
Treasury bond yields are headed south again on Tuesday but will be a key risk-factor after the spike higher last week.
Media companies take front and centre for company earnings with reports from Disney, News Corp and Discovery Communications while Groupon, Electronic Arts, Kellogg, LendingClub and Herbalife (NYSE:HLF) also report on Tuesday.
Futures suggest the:
S&P 500 will open 2 points lower at 2,112 with the
Dow 30 expected to open 22 points lower at 18,048 and the
Nasdaq 100 9 points lower at 4,473.
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