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Workday, Apollo Global Management ( APO ) up on planned S&P 500
addition
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Interpublic jumps after report co, Omnicom ( OMC ) in merger talks
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Futures: Dow flat, S&P 500 down 0.06%, Nasdaq down 0.18%
(Updates with prices)
By Purvi Agarwal and Shashwat Chauhan
Dec 9 (Reuters) - U.S. stock index futures were subdued
on Monday after the S&P 500 and the Nasdaq notched record
closing highs in the previous session on upbeat corporate
forecasts, while investors awaited a key inflation report due
later this week.
The consumer prices index (CPI) data due on Wednesday is
among the last major datasets ahead of the Federal Reserve's
Dec. 17-18 meeting and could influence the central bank's
monetary policy path.
Bets of a 25-basis-point rate cut in December shot up to
more than 87%, as data on Friday showed U.S. job growth surged
in November after being severely hindered by hurricanes and
strikes, but a rise in the unemployment rate to 4.2% pointed to
an easing labor market.
"We remain in the December rates cut camp and expect a
25bp cut next week," economists at Jefferies wrote in a note.
"However, post December meeting, we expect the pace of
rates cuts to slow to once a quarter, and we expect the next
rates cut to be in March."
Meanwhile, Citigroup
revised
its December rate cut call to 25-bps versus its prior
forecast of 50 bps.
A host of Fed officials including Chair Jerome Powell last
week said that the central bank could afford to be more cautious
with its monetary policy easing path, given the resilience of
the economy.
At 7:13 a.m. ET, Dow E-minis were up 1 point, or
0%, S&P 500 E-minis were down 3.75 points, or 0.06%, and
Nasdaq 100 E-minis were down 38 points, or 0.18%.
Wall Street's main indexes kicked off December on a broadly
positive note, with the benchmark S&P 500 and the
tech-heavy Nasdaq logging gains in their first week,
while the Dow ended the week marginally lower.
U.S. equities surged in November as Donald Trump's victory
in the presidential election and his party sweeping both houses
of Congress raised expectations of a friendlier policy stance
towards companies.
Global markets were also keeping an eye on political
developments in Syria, France and South Korea.
Among notable premarket movers, Workday and Apollo
Global Management ( APO ) jumped 9% and 6.3%, respectively, on
their planned inclusion into the S&P 500 index.
Nvidia ( NVDA ) was last down 1.8% after China's market
regulator said it has opened an investigation into the company
over suspected violation of the country's antimonopoly law.
Interpublic Group advanced 14.6% after a report said
marketing conglomerate Omnicom ( OMC ) was in advanced talks to
acquire the advertising company. Omnicom ( OMC ) shares were down 5.2%.
U.S.-listed shares of Chinese companies gained after the
Chinese Politburo hinted at a shift to looser monetary policy
next year and more proactive fiscal policy to spur economic
growth. Alibaba was up 6.1%, PDD Holdings ( PDD )
climbed 9.1% and Baidu added 5.3%.