US markets lost ground last week with losses consummated in dramatic fashion on Friday following the stronger than expected US unemployment report. The resulting bond market sell-off and rally in the US dollar threatens to derail foreign earnings at top US companies and triggered selling in American stock markets.
The multi-year highs made in the US-dollar index has also been driven by weakness in the euro ahead of the beginning of quantitative easing by the ECB today. US stocks face a strong dollar, a weaker euro and QE in the Eurozone attracting international capital flows out of the Dow Jones and into the German DAX
On Monday shares are looking like a weak open as the jobs report continues to get digested. A plunge in Chinese imports is also raising concerns over the health of domestic demand inside China and its implication for global growth.
Shares of Apple have been sagging a little heading into the launch of the Apple Watch and its listing on the Dow Jones Industrial Average. With iPad sales already falling off and Samsung’s new S6 perhaps set to take the sting out of iPhone 6 sales; there are concerns the Apple watch may not be able to make up the difference. Until there is some data on the popularity of the watch after it goes on sale in April, Apple shares at risk of some profit-taking.
Earnings are expected from Casey’s General Stores, Urban Outfitters and United Natural Foods on Monday.
Futures suggest the:
will open 3 points lower at 2,068 with the
expected to open 16 points lower at 17,840 and the
2 points lower at 4,397.