By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures dipped on Monday, threatening a continuation of losses for the Dow Jones Industrial Average after the index dropped below the key 17,000 level last week.
Home-sales data will kick off a busy few days for economic updates, the biggest of which will be payrolls on Friday, while investors will also get a Federal Open Market Committee decision mid-week. And while the earnings schedule for Monday is lighter -- Tyson Foods Inc. and Coach Inc.--the rest of the week will deliver plenty of big names.
Futures for the Dow Jones Industrial Average (DJU4) eased 6 points to 16,885, while those for the S&P 500 index (SPU4) fell 1 point to 1,970.40. Futures for the Nasdaq-100 index (NDU4) was flat at 3,955.50.
Pending home sales for June will be released at 10 a.m. Eastern Time. Between Wednesday and Friday, investors will get second-quarter gross domestic product, a Fed decision and July payrolls among other economic items of importance. Get ready for 48 hours of economic fury
Some market apprehension for Monday could be understandable after Wall Street's performance on Friday, which saw the Dow industrials (DJI) drop below 17,000. The benchmark lost 123.23 points, or 0.7%, to 16,960.57, weighed down by losses in Visa Inc. (V). For the week, the blue-chip index fell 0.8%, its biggest weekly loss since June 14.
The S&P 500 (SPX) closed 9.6 points, or 0.5%, lower at 1,978.34 and finished the week more or less where it started, while the Nasdaq Composite (RIXF) managed a gain of weekly 0.4%.
Fears of a bubble-bursting won't rest, said Joao Monteiro, analyst at Valutrades. "This story may be looking a little over-brokered, but with the quiet summer sessions lying ahead, even just a small shock could be all it takes to precipitate a big move," he said in a note to clients. Stock trader who called three crashes sees 20% collapse
Goldman Sachs on Friday cut its three-month view on global stocks to neutral over concerns a temporary bond selloff could hit equities.
The analysts maintained an underweight on the U.S. on both a three-and 12-month basis. "We expect reasonable returns for the U.S. on an absolute basis over the coming year, but relative to other markets, the longer-term recovery potential is smaller given already high margins and strong performance so far," said the analysts.
Mid-July, Goldman raised its year-end target for the S&P 500 index to 2,050 from 1,900, making the investment bank' one of the most bullish on Wall Street.
Among Monday's earnings reports, Tyson Foods (TSN) is expected to report third-quarter earnings of 78 cents a share. Coach (COH) will also report ahead of the market open. In Europe on Friday, LVMH Moët Hennessy Louis Vuitton shares tumbled nearly 7% after the luxury-goods group posted a 4% fall in first-half profit, citing negative effects from exchange rates. That news knocked Europe's entire luxury-goods sector.
Herbalife Ltd. (HLF) will report after the close on Monday. Herbalife, Tyson, General Growth are stocks to watch
Across other markets, Hong Kong's Hang SengIndex closed at highs not seen in more than three years on Monday after reports that a plan to allow direct stock trading between Hong Kong and Shanghai could be launched mid-October. Europe stocks had trouble making headway as U.S. stock futures leaned south.
Oil prices (CLU4) pushed lower, while gold (GCU4) was a touch higher and the U.S. dollar index(DXY), which measures the greenback against a basket of six other currencies, was largely steady.
More must-reads from MarketWatch:
Behind the wild collapse in small-cap stocks
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(END) Dow Jones Newswires
July 28, 2014 05:53 ET (09:53 GMT)
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