S&P 500 futures were little changed Monday night after the index closed out a winning August with a Monday-session pullback. Oil prices rose following a U.S. strike on Iran's Larak Island, pushing rates higher and dragging the Dow down more than 370 points, while traders now weigh a historically weak September against Friday's jobs report.
Dow Jones Industrial Average futures advanced 25 points when trading opened Monday night. S&P 500 futures were up less than 0.1%, while Nasdaq-100 futures were marginally lower. The moves came after a losing session that still left the major benchmarks with monthly gains: the S&P 500 advanced 2.6% in August, the Nasdaq Composite rose 3.9%, and the Dow climbed 1.3% for its fifth straight monthly advance.
Oil spike drags stocks into the close
However, Wall Street ended August on a sour note. The Dow dropped more than 370 points in regular trading as oil prices climbed and pushed rates higher, after the U.S. struck two rocket launchers on Iran's Larak Island. The S&P 500 and Nasdaq Composite also fell on the day.
Traders flag nervous positioning
Goldman Sachs traders pointed to fresh sentiment survey data in describing a market showing signs of nervousness even as it traded within striking distance of record highs, adding that investors are already adjusting portfolio risk allocations accordingly. On top of that, September has historically been a weak month for stocks, a seasonal pattern that, combined with a packed economic calendar, is likely to keep investors on edge through the week.
Jobs report looms over the Fed outlook
Manufacturing and services sector data are due Tuesday and Wednesday. The August jobs report is due Friday. Economists polled by Dow Jones expect 53,000 jobs added for the month. Jose Torres, senior economist at Interactive Brokers, said softer labor figures would justify a more balanced approach from the Fed on interest-rate policy, and separately said a second straight month of declining payrolls would motivate heavier bond buying as slowdown concerns get priced into the curve.
The stock market now awaits Tuesday's manufacturing data and Friday's payrolls print for direction into September.
Source: CNBC
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