MARKET SNAPSHOT: Dow Futures Fall, Putting Blue-chip Stocks On Track To Extend Last Week's Pullback

By Victor Reklaitis, MarketWatch Features Dow Jones Newswires

Dow industrials, S&P 500 are coming off their first weekly drop in 2 months

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U.S. stock futures on Monday pointed to a drop at the open, putting the Dow and S&P 500 on track to fall further after enduring their first weekly drop in two months.

What are the main benchmarks doing?

Dow Jones Industrial Average futures fell by 81 points, or 0.34, to 23,301, while S&P 500 futures shed 7.6 points, or 0.3%, to 2,572.25. Nasdaq-100 futures gave up 24.25 points, or 0.4%, to 6,285.25.

On Friday, the Dow and S&P 500 notched weekly drops of 0.5% and 0.2%, respectively, as they suffered their first weekly declines since early September (http://www.marketwatch.com/story/dow-futures-slump-70-points-as-tax-delay-concerns-spook-investors-2017-11-10). The Nasdaq Composite gave up 0.2% for the week.

What is moving markets?

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Analysts have blamed the recent selling on worries about delays in much-anticipated corporate tax cuts out of Washington. The three main stock gauges are still up by between 15% and 25% for the year, supported by factors such as an expanding U.S. economy and improving corporate profits.

Investors continue to monitor President Donald Trump's 13-day visit to Asia. On Monday, Trump said he had a "great relationship" with Philippine President Rodrigo Duterte, and a White House official said human rights got only a brief mention as the two met in Manila, a Reuters report said (https://www.reuters.com/article/us-trump-asia-philippines/trump-and-philippines-duterte-bond-at-asia-summit-rights-mentioned-briefly-idUSKBN1DD0FZ).

On Sunday night, the president teased (http://www.marketwatch.com/story/trump-teases-trade-announcement-to-be-announced-wednesday-2017-11-12) a "major statement" on trade that he said he'll make Wednesday in Washington. "A lot of things are happening on trade and I'll be announcing pretty much what happened here and also with other meetings, including with China, South Korea and lots of other places," Trump said from Manila.

See:Trump calls Kim Jong Un 'short and fat,' then offers his mediation skills for South China Sea dispute (http://www.marketwatch.com/story/trump-insults-north-korean-leader-then-offers-to-mediate-south-china-sea-dispute-2017-11-12)

What are strategists saying?

"The swirling winds of tax reform have blown the stock rally off course, at least for the time being," said Sam Stovall, chief investment strategist at CFRA, in a note.

"Differences between the House and Senate versions, combined with the year in which corporate tax reform will be enacted, have only served as a threat to remove the tax-cut 'carrot' that has enticed this market forward," he said.

"Global equity markets have seen a loss of short-term momentum that has finally given way to a pullback in the S&P 500 Index," said Katie Stockton, chief technical strategist at BTIG, in a note.

"A pullback in the 2%-3% range might be enough to relieve the market of 'overly bullish' sentiment without generating a lot of breakdowns or affecting positive intermediate-term momentum," Stockton said.

What are other assets doing?

European stocks pulled back, and the pound dropped as British Prime Minister Theresa May faces fresh pressure (http://www.marketwatch.com/story/pound-slides-as-british-government-faces-turmoil-2017-11-13) to resign.

Read Brett Arends on:Brexit hardliners are selling England by the pound (http://www.marketwatch.com/story/brexit-hardliners-are-selling-england-by-the-pound-2017-11-09)

Most Asian markets closed lower (http://www.marketwatch.com/story/nikkei-slumps-again-as-asian-markets-decline-2017-11-12), with the Nikkei falling the most since April, but Hong Kong's Hang Seng Index managed a modest gain. Gold futures and the ICE U.S. Dollar Index were higher.

The U.S. oil benchmark was up slightly, as a United Arab Emirates official said (https://www.cnbc.com/2017/11/13/opec-likely-to-extend-supply-cuts-in-bid-to-rebalance-the-market-uae-energy-minister-suhail-al-mazroui-says.html) he expects major producers to extend global supply cuts at a closely-watched meeting at the end of the month.

Check out:Should oil really be trading above $60 a barrel? (http://www.marketwatch.com/story/should-oil-really-be-trading-above-60-a-barrel-2017-11-10)

Which stocks look like key movers?

Shares in Mattel Inc.(MAT) traded 22% higher in premarket action in the wake of a report late Friday that rival toymaker Hasbro Inc.(HAS) has made a takeover offer (https://www.marketwatch.com/story/hasbro-makes-an-offer-to-buy-rival-mattel-2017-11-1).

Shares in General Electric Co.(GE) rose 1.5% in premarket trading following news the conglomerate plans to cut its dividend by half (http://www.marketwatch.com/story/ge-plans-to-slash-dividend-by-50-2017-11-13), with the conglomerate on Monday saying the move will help its effort to drive up growth and value for shareholders. GE was also expected to announce a focus on three of its biggest business lines (http://www.marketwatch.com/story/ge-to-focus-on-3-key-units-pull-back-from-transportation-2017-11-13), but not a more radical restructuring.

Tyson Foods Inc.'s stock (TSN) gained 4% premarket after the company posted better-than-expected quarterly profit and revenue (http://www.marketwatch.com/story/tyson-shares-rise-after-earnings-and-sales-beat-2017-11-13).

Shares in Boeing Co.(BA) rose 0.6% ahead of the open after the aerospace giant scored a $15 billion deal with Emirates Airlines (http://www.marketwatch.com/story/boeing-seals-151-billion-emirates-airlines-deal-2017-11-12).

GGP Inc.(GGP) rose 4% as Brookfield Property Partners LP(BPY) has made a $14.8 billion offer (http://www.marketwatch.com/story/brookfield-property-offers-148-billion-to-buy-mall-owner-ggp-2017-11-12) to acquire the shares of the mall owner that it doesn't already own.

Shares of Nektar Therapeutics(NKTR) soared 26% in premarket trade after the biopharmaceutical company announced over the weekend positive data from a trial of its cancer treatment (http://www.marketwatch.com/story/nektar-therapeutics-stock-rockets-toward-near-17-year-high-after-upbeat-trial-data-2017-11-13).

Valeant Pharmaceuticals International Inc. (VRX.T) said it was launching a private offering of $750 million worth of notes due 2025 (http://www.marketwatch.com/story/valeant-issues-750-million-in-debt-to-pay-down-debt-2017-11-13), paying 5.500%. The drug maker plans to use the proceeds from the debt offering to repay a portion of term loan facilities due 2022.

What economic news is ahead?

Philadelphia Fed President Patrick Harker in a speech Sunday pulled back slightly in his support (http://www.marketwatch.com/story/feds-harker-pulls-back-slightly-his-support-for-a-december-rate-hike-2017-11-12) for a December interest-rate hike. No Federal Reserve officials are schedule to speak on Monday, but on Tuesday, departing Fed Chairwoman Janet Yellen is due to take part in a panel discussion with heads of other major central banks.

Read: With hurricane noise beginning to soften, economic focus turns to Fedspeak (http://www.marketwatch.com/story/with-hurricane-noise-beginning-to-soften-economic-focus-turns-to-fedspeak-2017-11-11)

An October report on the U.S. federal budget is due at 2 p.m. Eastern Time on Monday.

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

(END) Dow Jones Newswires

November 13, 2017 08:42 ET (13:42 GMT)