Futures lower as oil prices retreat

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[January 25, 2016]  By Abhiram Nandakumar

(Reuters) - U.S. stock index futures were lower on Monday after last week's rally in oil prices lost steam.

Crude prices resumed their slide after a strong two-day rally as output from Iraq reached record highs. [O/R]

U.S. stocks logged their first positive week of the year last week, with the three indexes closing up 2 percent on Friday.

All eyes will be on the U.S. Federal Reserve's next move on interest rates when the Federal Open Market Committee meets on Jan. 26-27.

Investors, already rattled by the volatile start to the year and a persistent decline in oil prices, now turn to quarterly corporate results with lowered expectations.

Quarterly profits at S&P 500 companies are expected to fall 4.3 percent, according to Thomson Reuters data. Excluding energy companies, earnings are estimated to grow by 1.7 percent.

Dow component McDonald's is scheduled to report results before the bell.

Tyco International's shares soared 14.4 percent to $27.71 premarket after Johnson Controls Inc said it would merge with the Ireland-based fire protection and security systems maker.

Twitter was down 5.5 percent at $16.85 after Chief Executive Jack Dorsey said four senior executives would leave the social media company.

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Caterpillar was down 2.6 percent at $59.40 after Goldman Sachs cut its rating on the stock to "sell".

Futures snapshot at 6:56 a.m. ET:

Dow e-minis were down 51 points, or 0.32 percent, with 34,652 contracts changing hands.

S&P 500 e-minis were down 4.5 points, or 0.24 percent, with 203,363 contracts traded.

Nasdaq 100 e-minis were down 12.5 points, or 0.29 percent, on volume of 41,100 contracts.

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Anil D'Silva)

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