U.S. Stock Futures Pointing Lower with Increased Market Uncertainty

U.S. stock futures are pointing lower in pre-market trading for Monday, August 22. The Dow Futures are at 18506.0 for a loss of -34.00 points. The S&P 500 Futures are at 2178.25 for a loss of -3.50 points. The Nasdaq Futures are lower at 4799.75 for a loss of -7.25 points. The Russell Futures are at 1232.5 for a loss of -2.20 points.

In overnight trading in the Eastern Hemisphere, Japan’s Nikkei 225 is at 16598.19 for a gain of 52.37 points or 0.32 percent. Hong Kong’s Hang Seng Index is at 22997.91 for a gain of 60.69 points or 0.26 percent. China’s Shanghai Composite is at 3084.81 for a loss of -23.30 or -0.75 percent. India’s S&P BSE Sensex is at 27985.54 for a loss of -91.46 points or -0.33 percent. In Europe, the FTSE 100 is at 6828.35 for a loss of -30.60 points or -0.45 percent. Germany’s DAX is at 10525.78 for a loss of -18.58 points or -0.18 percent. France’s CAC 40 is at 4395.63 for a loss of -4.89 points or -0.11 percent. The Stoxx Europe 600 is at 340.41 for a gain of 0.27 points or 0.08 percent.

Monday’s Factors and Events

On the economic calendar for Monday is the Chicago Fed National Activity Index. The Treasury will also be holding auctions for the 3-month bill and 6-month bill.

Stocks trading actively in the pre-market include the following:

Frontier Communications

Royal Caribbean Cruises

Monsanto

Aetna Inc.

Verizon Communications

NextEra Energy Inc.

Emerson Electric

Newmont Mining

Second quarter earnings reports continue to slow with approximately ten companies reporting earnings Monday. Pfizer will be on watch Monday after it announced it would be acquiring Medivation for $81.50 share. Medivation is a leading cancer drug provider.

In the broad market, stock valuations are trading mostly lower to start the week. Investors will be watching oil prices which gained above $50 a barrel last week. Investors will also be watching for any indications of the timing for the next rate increase from Janet Yellen who will be speaking at the Monetary Policy Symposium in Jackson Hole later this week.

Friday’s Activity

Stocks were mostly lower on Friday. The Dow Jones Industrial Average closed at 18552.57 for a loss of -45.13 points or -0.24 percent. The S&P 500 was also lower at 2183.87 for a loss of -3.15 points or -0.14 percent. The Nasdaq Composite closed lower at 5238.38 for a loss of -1.77 points or -0.03 percent.

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Source: DJIA, S&P 500 and Nasdaq Composite. Google Finance.

Other notable index closes included the small-cap Russell 2000 Index, lower at 1236.77 for a loss of -0.08 points or -0.01 percent; the S&P 600 Small-Cap Index, higher at 748.85 for a gain of 0.04 points or 0.01 percent; the S&P 400 Mid-Cap Index closing at 1562.80 for a gain of 1.28 points or 0.08 percent; the S&P 100 Index closing at 964.80 for a loss of -2.28 points or -0.24 percent; the Russell 3000 Index closing at 1290.59 for a loss of -1.68 points or -0.13 percent; the Russell 1000 Index closing at 1209.50 for a loss of -1.70 points or -0.14 percent; and the Dow Jones U.S. Select Dividend Index closing at 620.85 for a loss of -3.85 points or -0.62 percent.