U.S. stock futures declined somewhat Monday morning, indicating what could be a small pullback following the recent four-week surge that culminated in Friday's positive reaction to a better-than-expected jobs report. With stocks at nine- to ten-months high, investors are set to take some profit. Stocks had another strong performance last week -- the S&P 500 was up 2.3%, the Dow industrials were up 2.2% and the Nasdaq up 1.1% -- and after Friday the jobs report showed 247,000 jobs were lost in July and that unemployment declined to 9.4%, some economists said the recession may be over soon.
But now some bet the S&P 500's steepest rally since the 1930s won't survive September, historically the worst month for U.S. equities. Feelings of ovrebuying and high valuations added to the sentiment.
Overseas, Asian stocks closed higher with Japan's Nikkei and Hong Kong's Hang Seng hitting a 10-month closing high on Monday. European stocks were modestly down in early trade, however, as investors booked some of the gains made in the past four weeks especially and the past five months generally.
Oil prices were little changed at $71 a barrel on Monday, as investors looked to statistical data due later this week about the strength of U.S. consumer spending.
There are no economic news on tap today, but Goldman Sachs raised its forecast for Asian economic growth this year and next based on a stronger outlook for the United States and China.
Meanwhile, China accused mining giant Rio Tinto (NYSE: RTP) for spying on Chinese steel mills for six years, resulting in the mills overpaying $102 billion for iron ore, Rio Tinto's biggest earner. Rio Tinto declined to comment on the accusations, which may be something new according to Australia's ministry and the writer. Nonetheless, four Rio employees remain detained in Shanghai on suspicion of stealing state secrets.
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