MARKET SNAPSHOT: U.S. Stocks Set To Retreat After Earnings-fueled Tech Surge

By Barbara Kollmeyer and Sara Sjolin, MarketWatchFeaturesDow Jones Newswires

Spanish stocks rally as central government takes over

U.S. stocks on Monday were poised to open lower after a series of hotter-than-expected quarterly results in the technology sector last week helped to power broad-market gains, ahead of a week that will see a key employment report and an updated policy statement from the Federal Reserve.

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What are stock-index futures doing?

Futures for the Dow Jones Industrial Average lost 58 points, or 0.3%, to 23,314, while those for the S&P 500 fell 5.65 points, or 0.3%, to 2,572.75. Meanwhile, Nasdaq-100 futures trade little changed at 6,215.

The S&P 500 and Nasdaq Composite , closed at records on Friday (, fueled tech stocks after Inc.(AMZN), and Microsoft Corp.(MSFT) results, among others. The Dow added 33.33 points, or 0.1%, at 23,434.19.

What could drive the markets?

Investors will also be awaiting President Donald Trump's decision on who will lead the Fed after Chairwoman Janet Yellen's term expires in February. A report Friday said Trump is leaning toward choosing Fed Gov. Jerome Powell (

Meanwhile, the Federal Reserve meets Tuesday and Wednesday. . No changes to monetary policy are expected, but the statement at the conclusion of the meeting will be closely watched for clues on whether policy makers intend to go ahead with a widely expected December increase in interest rates. Bank of Japan and Bank of England also will have monetary policy meetings.

Read: Manafort told to surrender to federal authorities: report (

Beyond central banks, any further developments on U.S. tax reforms will hold investor attention. Republicans expect to unveil a much-awaited bill to overhaul the tax code Wednesday. The National Association of Home Builders is set to offer opposition (

What data are ahead?

Consumer spending leapt 1% in September, the biggest gain since early mid-2009, just as the current economic recovery got under way. Personal income rose 0.4%, but the savings rate fell to 3.1%, the lowest level since December 2007.

The personal-consumption-expenditure index, or PCE, the Federal Reserve's preferred inflation gauge, increased 0.4% in September, while the closely followed "core" rate, that strips out food and energy, rose 0.1%.

Read:Apple engineer reportedly fired over daughter's viral video of iPhone X (

Also read: Why stock-market bulls should be wary of rising tide of earnings shenanigans (

What are analysts saying?

"Financial markets have begun a key week of economic data and central bank decisions with a cautious tone today. In the coming days there will be some key risk events with a series of major central banks announcing monetary policy, including the Fed, the Bank of Japan and a potential historic rate hike from the Bank of England," said Richard Perry, market analyst at Hantec Markets, in a note.

Check out:Fed statement may have treats for the hawks and the doves (

Opinion:Trump-Ryan tax plan will encourage more corporate offshore tax avoidance (

Which stocks are in focus?

Shares of CalAtlantic Group Inc.(CAA) soared 18% ahead of the bell after the home builder said it plans to merge with peer Lennar Corp ( in a deal worth about $9.3 billion, including $3.6 billion in assumed net debt. Lennar shares didn't move premarket.

Wal-Mart Stores Inc.(WMT) slipped 0.2% before the open. The head of the company's U.K. chain Asda, Sean Clarke (, will leave his post on Dec. 31 and will be followed by Roger Burnley.

Dynegy Inc.(DYN) climbed 4.2% premarket after news the energy company is merging with Vista Energy in a deal that would value the combined entities at more than $10 billion.

Akzo Nobel NV(AKZOY) (AKZOY) and U.S. rival Axalta Coating Systems Ltd. (AXTA) said they are in talks to merge ( ( Akzo Nobel shares rose 0.5% in Amsterdam, while Axalta shares fell 0.6% premarket.

Shares of Huntsman Corp.(HUN) could be in focus. Activist U.S. investors, who helped scuttle a proposed merger between Huntsman and Swiss chemicals company Clariant (CLN.EB), said they would try to seek a seat on Clariant's board of directors and push for more changes (

U.S.-listed shares of HSBC Holdings PLC(HSBA.LN) fell 1.2% even after the bank said it swung to a third-quarter net profit of $3.24 billion (

What are other markets doing?

The ICE Dollar Index was down 0.2% to 94.676, with slight losses against the euro .

And:Is the euro rally toast after ECB unveils dovish bond-buying cutback? (

Oil prices were rising (, up 4 cents, or less than 0.1%, to $53.94 a barrel, while gold ( was marginally higher at $1,272.50 an ounce.

Stocks in Europe opened flat, but Spanish stocks rallied 1.5%. Spain's central government is taking control of Catalonia after removing the region's president Carles Puigdemont and calling for new elections on Dec. 21 ( ( Hundreds of thousands of pro-unity demonstrators rallied in Catalonia on Sunday (

Stocks in Asia finishedmostly fell (, with Chines stocks dented in part by a bond selloff.

(END) Dow Jones Newswires

October 30, 2017 08:44 ET (12:44 GMT)