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Market Snapshot: Stocks set to hold near records as investors return from 3-day break

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U.S. stock-index futures pointed to benchmarks holding near record highs, as traders returned from a three-day break on Tuesday.

How are stock-index futures trading?
  • Futures on the Dow Jones Industrial Average
    YM00,
    -0.02%

    slipped by 12 points, or less than 0.1%, at 35,340
  • Futures on the S&P 500
    ES00,
    -0.01%

    eased less a point at around 4,534
  • Nasdaq-100 futures
    NQ00,
    -0.04%

    were little changed at 15,652, but in positve territory

The tech-heavy Nasdaq Composite
COMP,
+0.21%

ended at a record on Friday, and gained 1.6% last week. The S&P 500
SPX,
-0.03%

and Dow Jones Industrial Average
DJIA,
-0.21%

finished the week within touching distances of all-time highs.

What’s driving the market

Analysts were discussing the implications of the disappointing August payrolls report released Friday by the Labor Department, which showed 235,000 nonfarm jobs created.

Analysts at BCA Research pointed out that while no leisure and hospitality jobs were created last month, wages rose — an indicator that the delta wave of COVID-19 infections is the primary cause for the jobs disappointment, and not a shift in the industry’s hiring needs.

“We expect strong job growth in the months ahead as supply-side labor constraints are removed and infections rates ease. This implies that the Fed will continue to prepare for the normalization of monetary policy, starting with a taper announcement later this year,” they said.

Strategists at Barclays lifted their year-end S&P 500 price target to 4,600 from 4,400. “We do not believe that the start of the taper will lead to a significant market selloff,” the Barclays strategists said.

See: Taper your pessimism — Fed’s actions won’t derail U.S. stocks, Barclays strategists say

Which companies are in focus?
  • State Street Corp.
    STT,
    +0.22%

    announced Tuesday that it had entered an agreement to acquire Brown Brothers Harriman’s Investor Services business for $3.5 billion in cash. The deal includes BBH’s custody, accounting, fund administration, global markets and technology services, and is expected to close by year-end. State Street shares fell 1.2% in premarket trade.
  • Shares of Boeing Co.
    BA,
    -1.20%

    were down 0.9%. Ryanair Holdings PLC said Monday that its negotiations with the company over an order for the Boeing 737 MAX 10 aircraft had ended as an agreement on pricing couldn’t be reached.
How are other assets faring?
  • The yield on the 10-year U.S. Treasury note
    TMUBMUSD10Y,
    1.367%

    rose 4.2 basis points to 1.366%. Yields move in the opposite direction of prices.
  • The ICE U.S. Dollar Index
    DXY,
    +0.44%
    ,
    a measure of the currency against a basket of six major rivals, rose 0.3%.
  • Oil futures were under pressure, with the U.S. benchmark
    CL00,
    -1.65%

    down 1.5% at $68.22 a barrel on the New York Mercantile Exchange. Gold futures
    GC00,
    -1.11%

    were also lower, down 1% at $1,814.70 an ounce.
  • European equities were slightly lower, with the Stoxx Europe 600
    SXXP,
    -0.27%

    down 0.3%, while the FTSE 100
    UKX,
    -0.22%

    edged down 0.2%.
  • In Asia, the Shanghai Composite
    SHCOMP,
    +1.51%

    rose 1.5%, while the Hang Seng Index
    HSI,
    +0.73%

    rose 0.7% and Japan’s Nikkei 225
    NIK,
    +0.86%

    advanced 0.9%.

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