Stock futures modestly lower ahead of opening
NEW YORK -- Stock futures were modestly lower early Monday as investors turn their attention to an upcoming Federal Reserve Board meeting and earnings from some of the nation's largest retailers.
Overseas, Asian markets rose amid a positive report on Japanese machinery orders, a key indicator of corporate capital spending. European markets were modestly lower.
Amid a spring rally that has now stretched into the summer, investors will continue to hunt for signs of economic improvement to keep sending stocks higher. Better-than-expected earnings reports, along with signs of stabilization in the housing and banking sectors, have buoyed stocks in recent weeks.
To sustain the rally, investors will need to see consumers are back to buying goods. Consumer spending accounts for more than two-thirds of economic activity and is considered vital to a recovery.
Investors will also look to the Fed for indications of how the economy is faring. It is widely expected the Fed will keep key interest rates steady at near zero, but concerns about inflation are starting to grow, which could eventually force the Fed to raise rates.
The Fed's two-day meeting begins Tuesday.
The muted trading comes after the market rallied sharply on Friday amid a stronger-than-expected monthly unemployment report. The data was welcomed as the latest sign the economy is starting to rebound from its bottom, though it still hasn't fully recovered.
The Labor Department said employers cut 247,000 jobs in July, fewer than the 320,000 expected to be cut. The unemployment rate dipped to 9.4% from 9.5% the previous month. Economists had predicted the jobless rate would rise to 9.6%.
The major indexes all jumped more than 1.2% on Friday.
Meanwhile, bond prices fell Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.87% from 3.86% late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18% from 0.16% late Friday.
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