Stock futures pointed to gains Monday as Wall Street appeared poised to build on a weekend rally precipitated by a weaker-than-expected jobs report that helped spur bets on a decline Federal Reserve rate forecast.
Futures contracts tied to the S&P 500 (^GSPC), Nasdaq Composite (^IXIC), and Dow Jones Industrial Average (^DJI) were all up about 0.3%.
Stocks rebounded late last week, buoyed by a “Goldilocks” jobs report that struck the balance in providing welcome news to both markets and the Fed. More than two-thirds of bets are now on a Fed rate cut in September, according to the CME FedWatch tool. Most retailers now expect at least two reductions by the end of the year.
Those bets could be changed by the return of the Fed speech, now that free Fed officials are no longer bound by a pre-meeting blackout period. New York Fed President John Williams and Thomas Barkin of the Richmond Fed are scheduled to speak Monday, while Neel Kashkari of Minneapolis is scheduled to speak Tuesday.
In corporate news, Disney (DIS) will take center stage this week as earnings season begins to wind down. Its stock is up about 25% year to date. Meanwhile, after rising 6% after earnings on Friday, shares of Apple (AAPL) fell about 0.5% after Berkshire Hathaway CEO Warren Buffett revealed over the weekend that the company had reduced its stakes in the iPhone maker.
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