US stocks set to bounce higher after last week's drop – MarketWatch

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U.S. stock futures rose moderately Monday, suggesting the equity market could rally following last week’s pullback.

What are the main benchmarks doing?

Dow Jones Industrial Average futures YMU8, +0.37%  tacked on 84 points, or 0.3%, to 26,043, while S&P 500 futures ESU8, +0.39% gained 10.30 points, or 0.4%, to 2,885. Nasdaq-100 futures NQU8, +0.57% advanced by 39.75 points, or 0.5%, to 7,478.25.

On Friday, the Dow DJIA, -0.31% , S&P 500 SPX, -0.22% and Nasdaq Composite COMP, -0.25% finished lower for the session and notched weekly losses, with the S&P and Nasdaq shedding 1% and 2.6%, respectively.

The three gauges are showing year-to-date gains ranging from 4.8% to 14%.

What’s driving markets?

Trade tensions between the U.S. and its partners have put pressure on global markets in recent months, though for American equities that has been offset by strong readings on the U.S. economy.

A concern as the week kicks off is President Donald Trump’s tweet over the weekend urgingApple Inc. AAPL, -0.81% to move its manufacturing to the U.S., a comment that helped put some pressure on Asian tech stocks.

What are strategists saying?

“U.S. markets look set for a modest rebound on the open after last week’s selloff, despite the ratcheting up of trade tensions by the President Trump over the weekend,” said Michael Hewson, chief market analyst, at CMC Markets UK in a note.

Which stocks are in focus?

Shares in Apple were up 0.3% in premarket trading in the wake of Trump’s comments on shifting factories.

Tesla Inc. shares TSLA, -6.30%  rose 3% premarket after CEO Elon Musk announced a management shakeup late Friday. That move came after the car maker’s stock slumped in Friday’s session as more executives departed and Musk appeared to smoke marijuana during an interview.

Shares in Alibaba Group Holding Ltd. BABA, +1.56%   fell 1.5% in premarket action following news that tycoon Jack Ma plans to step down as executive chairman of the Chinese e-commerce giant in a year.

CBS Corp.’s stock CBS, +2.98%  is likely to be in focus after Les Moonves, the longtime chairman and CEO, resigned Sunday following new sexual misconduct allegations against him from six additional women.

Shares in Hovnanian Enterprises Inc. HOV, +0.65% are likely to see active trading as the home builder is among the companies expected to post earnings before the open.

Which economic reports are getting attention?

Boston Federal Reserve President Eric Rosengren said in an interview with MarketWatch that he does not read much about a possible recession from the shape of the yield curve, as he also said financial risks now are coming from smaller banks.

Atlanta Fed President Raphael Bostic is also slated to make remarks, speaking at an event in Georgia at noon Eastern Time.

Check out: MarketWatch’s Economic Calendar

An August survey of consumer expectations is slated to hit at 11 a.m. Eastern, and a July reading on consumer credit is expected at 3 p.m. Eastern.

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