US stocks: Analysts see volatile day after Paris attacks
New York ((Nov 16) US stock futures struggled for direction early Monday, while other global equity markets slumped as analysts warned of choppy trading after terror attacks in Paris.
S&P 500 futures ESZ5, +0.17% inched higher by 3.15 points, or less than 0.2%, to 2,021.75, while Dow Jones Industrial Average futures edged up by 14 points, or less than 0.1%, to 17,220. Nasdaq 100 futures NQZ5, +0.09% tacked on 6.25 points, or 0.1%, to 4,508.25.
“We are looking for further selling in global equities due to the Paris attacks and the fear over the Federal Reserve’s potential rate hike in December,” said Nour Al-Hammoury, chief market strategist at ADS Securities, in a note on Monday. He said the past weekend’s attacks are “likely to keep volatility high.”
The S&P 500 SPX, -1.12% and Dow DJIA, -1.16% both lost nearly 4% last week, as each benchmark halted a six-week winning streak. Analysts blamed lackluster economic and earnings reports on the retail sector, slumping commodities and the prospect of a U.S. interest-rate rise in December.
Other markets: Asian stocks ADOW, -1.36% mostly fell on Monday as the Paris violence unnerved investors and data showed Japan has entered a recession for the second time in two years. European equities SXXP, +0.13% dropped in the early going, but then some indexes turned positive, thanks to gains in commodity-related stocks as gold and oil prices rose.
France launches airstrikes against Islamic State
France responded with force after the Paris terrorist attacks by launching extensive airstrikes against Islamic State.
Gold futures GCZ5, +0.93% rallied as investors bid up safety plays, while oil futures CLZ5, +2.48% advanced on fears about supply disruptions after France launched airstrikes against Islamic State in Syria. In currencies trading, investors flocked to currencies perceived as safe, boosting the U.S. dollar DXY, -0.05% and the Japanese yen USDJPY, +0.36%
Individual movers: Travel-related stocks have come under pressure early Monday, with analysts blaming bets that tourism will drop off in the wake of the Paris attacks.
Shares in Carnival Corp. CCL, -2.11% dropped 2.2% in premarket trade, while Delta Air Lines Inc. DAL, -1.98% fell 1.8% in thin premarket action. Airline stocks were among the worst performers on Europe’s exchanges.
Driller Transocean Ltd. RIG, +0.49% and energy giant Chevron Corp. CVX, -1.31% each rose about 1% in premarket action, helped by crude oil’s advance.
Read: Energy majors protect dividends even as oil prices slump
Perrigo Co. PLC PRGO, -6.16% gained 2.7% premarket, trying to recover somewhat from Friday’s 6.2% drop on news that rival Mylan NV’s MYL, +0.80% buyout attempt had flopped.
On the earnings front, Dillard’s Inc. DDS, -8.77% is due to post quarterly earnings before the market’s open. After the market’s close, Urban Outfitters Inc. URBN, -6.35% and Agilent Technologies Inc. A, -1.92% are among the companies slated to report results.
J.C. Penney Co. JCP, +0.54% and Nordstrom Inc. JWN, -14.98% could see active trading, after each stock tumbled 15% on Friday as mall-based retailers warned about weak spending.
Economic news: In U.S. economic news on Monday, a November reading for the Empire State Manufacturing Survey is due at 8:30 a.m. Eastern Time. The survey provides details on the health of New York state’s manufacturing sector.
Check out: MarketWatch’s Economic Calendar
There are no Federal Reserve speeches scheduled for Monday, though a trio of Fed officials is due to make remarks on Tuesday.