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 * Presidents of the Chicago Fed Charles Evans and Boston Fed Eric
Rosengren on Monday took an aggressive stance on monetary policy,
citing the U.S. economy's capacity to absorb an increase in rates.
* Their comments were in contrast with Fed Chair Janet Yellen's
cautious tone on rates last week, given an uncertain global economy.
* Traders have priced in only one hike in 2016, with an even chance
of the central bank raising rates in June, according to the CME
Group's FedWatch program.
* A barrage of U.S. economic data has shown that the economy was
recovering at a modest pace, but was still vulnerable to risks from
a slowdown overseas and lower oil prices.
* Crude fell about 1 percent, hovering near one-month lows, after
data showed that U.S. gasoline demand unexpectedly fell and rising
skepticism over a deal by top producers to help reduce a persistent
global oversupply. [O/R]
* Data on Tuesday is expected to show that the U.S. trade deficit
widened to $46.2 billion in February from $45.7 billion the previous
month. The data is due at 8:30 a.m. ET.
* The Institute for Supply Management's index of non-manufacturing
activity likely rose to 54 in March, from 53.4 in February, a report
at 10 a.m. is expected to show.
* Wall Street closed lower on Monday, pausing from a recent rally,
as losses in commodity-related and industrial shares offset gains in
healthcare.
* Allergan shares fell 20.7 percent to $220 premarket after the U.S.
Treasury Department unveiled rules aimed at curbing tax inversion
deals, potentially derailing the drugmaker's $160 billion merger
with Pfizer. Pfizer was up 2.4 percent at $31.45.
[to top of second column] |
* Disney slipped 2 percent to $96.69 after the media company said a
veteran executive, who was tipped to be its next CEO, would step
down.
* Tesla fell 3.3 percent to $238.79 after the electric carmaker
reported first-quarter deliveries below its targets.
Futures snapshot at 6:53 a.m. ET:
* Dow e-minis were down 115 points, or 0.65 percent, with
28,504 contracts changing hands.
* S&P 500 e-minis were down 15.75 points, or 0.77 percent, with
254,499 contracts traded.
* Nasdaq 100 e-minis were down 26 points, or 0.58 percent, on volume
of 27,712 contracts.
(Reporting by Yashaswini Swamynathan and Abhiram Nandakumar in
Bengaluru; Editing by Anil D'Silva)
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