EghtesadOnline: U.S. index futures were little changed after the biggest equity jump in three weeks.
Apple Inc. lost 1.7 percent after being ordered to repay a record 13 billion euros ($14.5 billion) plus interest as the European Commission said Ireland illegally slashed the iPhone maker’s tax bill. Hershey Co. tumbled 11 percent as Mondelez International Inc. walked away from takeover discussions after its $23 billion bid was rejected by the chocolate maker. Mondelez gained 3.2 percent, according to Bloomberg.
S&P 500 Index contracts expiring in September fell 0.1 percent to 2,177 at 6:28 a.m. in New York, after the gauge halted its longest losing streak since June. Futures on the Dow Jones Industrial Average slipped 9 points to 18,480, while those on the Nasdaq 100 Index dropped 0.3 percent.
An increase in consumer spending on Monday added to the bullish case on the economy after the positive assessment by Federal Reserve Chair Janet Yellen on Friday. Investors are now turning their focus to the monthly employment data, with a private report due on Wednesday and the Labor Department figures on Friday. Traders have pushed forward their bets for a rise in borrowing costs, though December remains the first month with a more than 50 percent chance of a move.
“It will be up a bit, down a bit until we get nonfarm payrolls on Friday,” said Daniel Murray, head of research at EFG Asset Management in London. “The market will very much look to nonfarm payrolls for guidance to strength in the economy and Fed actions. But the trend looks quite strong, and if you try to triangulate various labor market indicators, everything is pointing to continued robustness in the U.S. labor market.”
The S&P 500, up 0.3 percent this month, has lost momentum after reaching a fresh record on Aug. 15 as speculation increased over the timing of the next Fed rate increase. Traders are now pricing in a 36 percent chance the central bank will move in September, up from 18 percent at the start of the month. At the same time, an index tracking economic results shows figures have been beating forecasts in recent weeks.
Among other stocks moving in premarket trading, United Continental Holdings Inc. climbed 3.3 percent after hiring Scott Kirby from American Airlines Group Inc. to oversee day-to-day functions as the company’s new president.