Wall Street Cautious Even As Commodities Steamroll

(RTTNews) - After the strong advances posted last week, Wall Street is set to pause on Monday even as commodities continue to head northward. The dollar is weakening on profit taking after last week's gains. Among equity markets, Asian stocks closed mostly higher, led by China, although the Japanese market was closed for a public holiday. The European markets are mostly lower. In the absence of any major economic data, the markets could focus on the Fed speeches scheduled for the day and trade in anticipation of the unfolding reporting season.

At 6:15 am ET, the Dow futures are slipping 2 points, the S&P 500 futures are declining 0.75 points and the Nasdaq 100 futures are moving down 3 points.

Fueled by the commodity rally, U.S. stocks advanced solidly in the week ended October 9th.

The unfolding week's economic calendar is back-end loaded, with a few first-tier economic data due for release over Wednesday, Thursday and Friday.

The Commerce Department's retail sales report for September, the Labor Department's weekly jobless claims report and consumer prices report for September, the results of separate manufacturing surveys for October by the New York Federal Reserve and the Philadelphia Federal Reserve, the Federal Reserve's industrial production report for September and preliminary reading of the University of Michigan's consumer sentiment reading for October are among the key economic readings to watch for in the week.

Several Fed speeches strewn across the week and the Beige Book report ahead of the October FOMC meeting may also garner the attention of traders. The Treasury's monthly budgetary statement for September, the Commerce Department's business inventories report for August and the Labor Department report on producer prices for final demand round up the economic events of the week.

Atlanta Federal Reserve Bank President Dennis Lockhart id due to speak in Orlando, Florida at 8:10 am ET. Chicago Federal Reserve Bank President Charles Evans will speak on the monetary policy in Chicago at 10:30 am ET. At 4:30 pm ET, Federal Reserve Governor Lael Brainard is scheduled to speak on the economic outlook to the NABE in Washington.

In corporate news, India's Infosys (INFY) reported better than expected second quarter results but it lowered its dollar revenue growth guidance. The company also announced the resignation of its CFO Rajiv Bansal.

NetApp (NTAP) recommended that shareholders reject a mini-tender offer by TRC Capital Corp. to purchase 3 million of its shares at $28.25 per share in cash.

Most Asian markets advanced, although the Australian and Indian markets came under selling pressure. The Japanese market was closed for a public holiday. Commodities continued their good run, reflecting the risk appetite set in motion by hopes that the ultra-loose monetary policy of the Federal Reserve may not be shelved in the near term.

The Chinese market advanced notably on reports that quoted a People's Bank of China official, who said the equity market correction is almost over. The Shanghai Composite Index added 104.51 points or 3.28 percent before ending at 3,288, marking the highest level since August 21st, 2015.

Hong Kong's Hang Seng Index ended at 22,731, up 272.13 points or 1.21 percent.

Meanwhile, Australia's All Ordinaries opened lower and declined steeply in early trading and steadily thereafter. The index ended down 41.80 points or 0.79 percent at 5,267. The sell-off was broad based, with energy, healthcare and utility stocks leading the declines.

European stocks opened mixed and have been on divergent routes since then. The French market ignored a firm start and is currently lower and the U.K. market has been weak since the start, while the German DAX Index is advancing moderately.

In major corporate news, Glencore, which has seen its performance hit by declines in commodity prices, announced plans to divest copper mines in Australia and Chile. The sale proceeds are expected to help the company reduce its debt burden. In Germany, utilities E.ON and RWE rallied in reaction to the findings of a report commissioned by the German Federal Ministry of Economic Affairs and Energy that said provisions of nuclear power operators fully reflect futures obligations.