Analyst: 'Market sentiment is fairly negative'
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U.S. stocks pointed to a dip at the open Monday, putting the Dow Jones Industrial Average on track to deepen its two-week drop.
Dow futures fell by 17 points, or 0.1%, to 21,662.00, while S&P 500 futures shed 2.55 points, or 0.1%, to 2,424.25. Nasdaq-100 futures gave up 11 points, or 0.2%, to 5,790.25.
"With earnings season coming to an end, there is not much to be bullish about right now," said Richard Perry, a Hantec Markets analyst, in a note Monday.
"Market sentiment is fairly negative with geopolitical risk still elevated on the Korean Peninsula," Perry said, adding that "the political risk of Trump's presidency remains a driving factor."
A new cycle of escalation near the Korean Peninsula looked set to begin as the U.S. and South Korea on Monday kicked off annual military exercises (http://www.marketwatch.com/story/tensions-expected-to-rise-as-us-south-korea-start-annual-war-games-2017-08-20) that have a history of enraging North Korea.
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President Donald Trump is due to lay out a path for U.S. strategy in Afghanistan (http://www.marketwatch.com/story/trump-to-announce-new-strategy-for-us-in-afghanistan-2017-08-20) in a nationally televised speech Monday night. On Tuesday, Trump is scheduled to speak at a campaign-style rally in Phoenix, Ariz., as he tries to move on from his much-criticized response to the white-supremacist violence in Charlottesville, Va.
Last week, the Dow (http://www.marketwatch.com/story/dow-set-to-fight-for-direction-but-flirts-with-biggest-two-week-drop-in-nearly-a-year-2017-08-18) lost 0.8%, leaving it down 1.9% over two weeks, for its largest two-week percentage decline since mid-September. The S&P dropped 0.7% for the week, and the Nasdaq Composite gave up 0.6%.
Other markets: Oil futures edged lower, while gold futures and the ICE U.S. Dollar Index inched higher. European equities lost ground (http://www.marketwatch.com/story/fiat-maersk-shares-shine-in-lackluster-european-stock-market-2017-08-21), while Asian markets closed mixed (http://www.marketwatch.com/story/australia-japan-lead-asian-market-decliners-2017-08-20).
Deal news: Shares in Sempra Energy(SRE) are likely to see active trading following news the San Diego Gas & Electric parent has reached a deal to buy Oncor for $9.45 billion, swooping in to snatch the power-transmission company (http://www.marketwatch.com/story/sempra-outbids-buffetts-berkshire-with-945-billion-deal-for-oncor-2017-08-21) away from Warren Buffett's Berkshire Hathaway Inc.(BRKA)
In European deal news, French oil giant Total SA(TOT) (TOT) has agreed to acquire Danish conglomerate A.P. Moeller-Maersk A/S's (MAERSK-B.KO) (MAERSK-B.KO) oil unit for $7.45 billion (http://www.marketwatch.com/story/total-buys-maersk-oil-unit-in-745-billion-deal-2017-08-21), the latest sign activity is returning to the sector following a three-year slump in oil prices.
U.S.-listed shares for Fiat Chrysler Automobiles NV(FCA.MI) (FCA.MI) traded 2% higher in premarket action after China's Great Wall Motor Co. (2333.HK) reportedly expressed interest in buying (http://www.marketwatch.com/story/chinese-auto-maker-interested-in-buying-fiat-reuters-2017-08-21) the Italian-American car maker.
Economic news: A July figure for the Chicago Federal Reserve's national activity index is slated to hit at 8:30 a.m. Eastern Time.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
But investors are already starting to turn their attention to this week's highlight, the Kansas City Fed's symposium in Jackson Hole, Wyo. The event for the world's central bankers starts Thursday.
(END) Dow Jones Newswires
August 21, 2017 05:54 ET (09:54 GMT)