The S&P 500 has risen in 10 of the past 12
sessions, ending at records six times in the past seven trading
days. On Friday, the benchmark index was lifted by the May
payroll report, which pointed to improving economic conditions,
though it was slightly weaker than expected. While Wall Street's
upward trend looks intact, traders may need new catalysts to
maintain its momentum.
Market participants will also continue to watch the CBOE
Volatility index .VIX, which on Friday fell to its lowest level
since February 2007. The "fear index" is almost half of its
historical average, which some analysts worry is a signal that
the market is not fully accounting for issues that could derail
Apple Inc AAPL.O may see heavy action on Monday, the first
session after a seven-for-one stock split. The tech titan rose
0.2 percent to $92.38 before the bell and was the Nasdaq's most
active premarket name. In addition, the Nikkei on Friday
reported that Apple was preparing to sell its first wearable
device this October, aiming to produce 3 million to 5 million
smartwatches a month in its initial run.
S&P 500 futures SPc1 fell 1.6 point and was about even with fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures DJc1 added 2
points and Nasdaq 100 futures NDc1 fell 3 points.
About 55,000 S&P 500 e-mini ESc1 contracts traded hands as of
7:00 a.m. EDT (1100 GMT), indicating another day of light
trading, which could make the market susceptible to big swings.
In company news, sources said Tyson Foods Inc TSN.N has
prevailed over Pilgrim's Pride Corp PPC.O in a bidding war for
Jimmy Dean sausage maker Hillshire Brands Co HSH.N.
General Motors Co GM.N late Friday announced four more recalls
covering 105,688 cars and trucks globally, raising the number of
recalls to 34, including the high-profile one for defective
ignition switches linked to at least 13 deaths.
Time Inc TIME.N, which is being spun off from its parent Time
Warner Inc TWX.N, will begin trading on the New York Stock
Exchange on Monday.
(Editing by Bernadette Baum)
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