By Barbara Kollmeyer, MarketWatch
Fed meeting, data will also command attention this week
Stock futures pulled back Monday, indicating that the Dow industrials's delicate hold on the 20,000 level could be put to a test as investors prepare for a heavy week of data, a Fed meeting and plenty of important company results.
On top of that, investors are weighing up whether the latest policy decisions by President Donald Trump, chiefly a travel ban and the public outcry that ensued over the weekend, will help sow doubts about his overall economic plans.
Dow Jones Industrial Average futures slipped 40 points, or 0.2% to 19,972, while S&P 500 futures dipped 5.85 points, or 0.3%, to 2,283.25. Nasdaq-100 futures fell 16.75 points, or 0.3%, to 5,145.75.
The Dow industrials fell 7.18 points to close at 20,093.78 on Friday, its third straight close above the key 20,000 level. The blue-chip index rose 1.3% for the week, while the S&P 500 added 1% and the Nasdaq Composite Index rose 1.9%.
Front and center on Monday, some investors were speculating on what the weekend moves by the Trump administration to ban immigrants from several predominantly Muslim countries would have on businesses world-wide. Others said it was just one more reason not to expect the year to go smoothly.
Read: Pro-immigrant protests continue at airports, cities around U.S (http://www.marketwatch.com/story/pro-immigrant-protests-continue-at-airports-cities-around-us-2017-01-29).
"While we continue to think a Trump victory likely meanshigher U.S. growth in 2017 than we would have expected 3 or 6 months ago, we still think volatility will be a feature of the year," said Jim Reid, strategist and Craig Nichol, research analyst, at Deutsche Bank, in a note to clients on Monday.
"It just seems that there are too many uncertainties, unknowns and major policy changes attached to a Trump presidency for it to be a smooth year," they said.
Read:Does Trump rally face 'one last meltup' after Dow 20,000? (http://www.marketwatch.com/story/room-for-one-last-meltup-after-dow-20000-2017-01-26)
(http://www.marketwatch.com/story/room-for-one-last-meltup-after-dow-20000-2017-01-26)Some risk averse action filtered through on Monday in the form of a weaker dollar against the Japanese yen (http://www.marketwatch.com/story/yen-rises-dollar-weakens-as-trump-travel-ban-unrest-rattles-investors-2017-01-30) , which often draws investor money in times of economic and political uncertainty. European stocks also fell.
However, gold remained largely unchanged at $1,188.60 an ounce.
Fed meeting, data: A busy week of economic indicators that ends with nonfarm payrolls kicks off on Monday with consumer spending, personal income and core inflation data for December at 8:30 a.m. Eastern Time, followed by pending home sales for the same month at 10 a.m. Eastern.
Read: Jobs report to give clue on early days of Trump White House (http://www.marketwatch.com/story/jobs-report-to-give-clue-on-early-days-of-trump-white-house-2017-01-29)
(http://www.marketwatch.com/story/jobs-report-to-give-clue-on-early-days-of-trump-white-house-2017-01-29)The Federal Open Market Committee's two-day meeting kicks off Tuesday, with economists widely predicting the central bank will hold pat and leave interest rates unchanged. That means investors will likely focus on "any new guidance on the 'balance of risks' statement with respect to policy confidence about further stimulus withdrawal," said Lena Komileva, chief economist at G+Economics, in a note to clients.
Stocks to watch: The coming week will see reports from a fifth of the S&P 500 index, plus five Dow components. Among those and crucial for the consumer-reliant technology sector will be Apple Inc (http://www.marketwatch.com/story/apple-earnings-iphone-7-could-break-streak-of-shrinking-sales-2017-01-27).(AAPL) on Tuesday and Facebook Inc. (FB) on Wednesday, while Amazon.com Inc. (AMZN) reports Thursday.
Read: Outlooks for the Age of Trump are top focus of the earnings season (http://www.marketwatch.com/story/outlooks-for-the-age-of-trump-are-top-focus-of-earnings-season-2017-01-28)
Meanwhile, executives from big technology companies such as Alphabet Inc.'s Google Inc. (GOOGL) , Facebook and Microsoft Corp. (MSFT) were among those who jumped to criticize Trump's temporary immigration ban (http://www.marketwatch.com/story/tech-leaders-speak-out-against-trumps-immigrant-ban-2017-01-29).
(http://www.marketwatch.com/story/tech-leaders-speak-out-against-trumps-immigrant-ban-2017-01-29)Delta Air Lines Inc.(DAL) said domestic flights were resuming (http://www.marketwatch.com/story/delta-domestic-flights-resume-after-computer-glitch-2017-01-30) after a computer glitch caused cancellations on Sunday.
Other markets: The FTSE 100 Index and Stoxx Europe 600 logged losses of 0.7% and 0.9%, respectively, amid negative reaction to Trump's immigration ban. In Asia, the Nikkei 225 index closed down 0.5%, largely due to yen strength. Most Asia markets were closed for the Lunar New Year holiday.
Oil prices traded moderately lower.
(END) Dow Jones Newswires
January 30, 2017 05:58 ET (10:58 GMT)
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