By Saumya Vaishampayan
U.S. stock futures fell slightly Monday, putting the S&P 500
index on track to pull back from record territory.
S&P 500 futures slipped four points, or 0.2%, to 2115.
E-mini Dow futures fell 22 points, or 0.1%, to 18207. E-mini
Nasdaq-100 futures lost 14 points, or 0.3%, to 4475. Changes in
stock futures don't always accurately predict moves in the stock
market after the opening bell.
European stocks mostly fell. France's CAC 40 shed 0.8% and
Germany's DAX lost 0.1%.
The S&P 500 ended at its eighth record of the year Friday,
adding 0.1% to 2122.73. The Dow rose 0.1% to 18272.56, finishing
0.1% shy of its all-time high of 18288.63.
While the S&P 500 has notched all-time highs in recent
sessions, hitting two in a row last week, the size of the moves
have been muted. Last week, the Dow rose just 0.4% and the S&P
added 0.3%. Part of the blame goes to weak economic data,
strategists say, as tepid reports dim the outlook for earnings
growth and future stock-market gains. Recent data showed a sharp
drop in consumer sentiment and a further decline in industrial
production.
The weak reports "make this year's earnings growth rate very
difficult to assess," said Gail Dudack, chief investment strategist
at Dudack Research Group, a division of brokerage Wellington
Shields & Co.
"Since multiples are slightly above average, it's been our view
that we will need earnings growth for stocks to move higher," she
added.
Including results from 465 companies in the S&P 500,
first-quarter earnings are on track to grow nearly 0.5% from a year
ago, according to FactSet.
Housing data will be in focus Monday. The May reading of the
NAHB/Wells Fargo Housing Market Index is expected to rise to 58
from a reading of 56 previously, according to economists surveyed
by The Wall Street Journal.
In commodity markets, gold futures added 0.1% to $1226.00 an
ounce. Crude-oil futures gained 1.4% to $60.55 a barrel.
Treasury prices slipped, pushing the 10-year yield up to 2.157%
from 2.141% on Friday.
In corporate news, Endo International PLC has agreed to buyPar
Pharmaceutical Holdings Inc. from private-equity firm TPG for about
$8 billion in cash and stock. Endo shares rose 1.6% in premarket
trading.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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