The Money Edit

Opening bell

Opening bell

Brent crude $106.00 1.6%
S&P futures 0.5%
10Y Treasury 5.18%
S&P 500 Friday close 7,743.41
Nasdaq futures 1.0%
Nikkei 225 0.8%
Stoxx 600 0.2%

Oil climbs on Iran doubts, futures slip

Overnight

Wall Street finished last week on a strong note, with the Dow Jones Industrial Average up 478.64 points, or 0.9 percent, to 51,828.62 on Friday, while the S&P 500 and the Nasdaq Composite each added 0.5 percent, to 7,743.41 and 27,068.72. That optimism did not survive the weekend, because oil climbed again on doubts that the United States and Iran will reach a truce, lifting Brent crude 1.6 percent to $106.00 a barrel and sending US stock futures lower, with S&P 500 futures off about 0.5 percent and Nasdaq futures down roughly 1 percent. Asia was mixed, with Japan's Nikkei up 0.8 percent while the broader index of Asia Pacific shares outside Japan slipped 0.2 percent, and Europe edged higher, with the pan European Stoxx 600 gaining 0.2 percent and both the FTSE 100 and the CAC 40 up 0.3 percent.

What to watch

Today is the quiet start to a loud week. The main US release is the Dallas Fed manufacturing survey, a monthly gauge of factory activity in Texas that is expected to cool to 7.3 from 11.6, along with routine Treasury bill auctions and remarks from Federal Reserve officials. The bigger tests come later, with the PCE price index, the inflation measure the Fed actually targets, due Wednesday, the ISM manufacturing survey Thursday, and the September jobs report Friday, where forecasters look for about 85,000 new jobs and unemployment at 4.1 percent, all of which matters more than usual with the 10-year Treasury yield at 5.18 percent and energy costs rising.

Sources