Bevy of Economic Data to Greet Investors This Week
“The market is very strong, and it deserves a bullish benefit of the doubt,” Mr. Sarhan said.
He added that valuations are still nowhere near where they were at previous bull market tops. And although the Federal Reserve is winding down on its highly-stimulative bond buying program, it remains an “underlying driver” for the market while interest rates remain so low.
At 9:45 a.m. EDT, the Institute for Supply Management’s Chicago-area purchasing managers index for June is expected to slip to 62.9 from 65.5 in May. Readings above 50 indicate expansion in activity.
Pending home sales for May, due out at 10 a.m., are seen increasing 1.1% on the month.
But investors will be looking ahead to data on manufacturing activity on Tuesday, private-sector payrolls on Wednesday, and the government’s monthly employment report on Thursday.
The yield on the 10-year Treasury note ticked lower to 2.526% from 2.531% late Friday.
Gold futures fell 0.5% to $1,313.80 an ounce, after posting a fourth-straight weekly gain last week. Crude oil futures lost 0.4% to $105.29 a barrel. The dollar lost some ground against the euro and the yen.
European markets slipped after data showing euro zone inflation in June was unchanged at the lowest level in more than four years. The Stoxx Europe 600 was down 0.2%, after snapping a five-session losing streak on Friday. The index was headed for a slight decline on the month, but was still up 4% on the year.
Asian markets were mostly higher. China’s Shanghai Composite rose 0.6%, but closed out the second quarter with a 3.2% decline on the year. Japan’s Nikkei Stock Average advanced 0.4% on Monday, but has lost 6.9% so far in 2014.
Among some early stock movers, GoPro climbed 5.5% in premarket trading, adding to the video-camera maker’s bright start as a public company. The stock closed Thursday at $31.34, or 31% above its $24 initial public offering price, before rallying another 14% on Friday.
MannKind ran up 12% in active trading after the Food and Drug Administration approved the company’s inhaled insulin treatment.
The U.S.-listed shares of Philips gained 2.7% after the Dutch electronics company said it is spinning off its lighting components business.