MARKET SNAPSHOT: U.S. Stocks: Futures Dip As China Data Weigh, Midterm Elections Loom

By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) -- U.S. stock futures pointed to a slightly lower open for Wall Street on Monday after a heady two-week run, following weak manufacturing data out of China.

Meanwhile, the dollar surged past 113 Japanese yen.

Futures for the S&P 500 index (SPZ4) fell 1.3 points to 2,010.20, while those for the Dow Jones Industrial Average (DJZ4) fell 19 points to 17,292. Futures for the Nasdaq-100 (NDZ4) lost 3.25 points to 4,147.25.

The S&P 500 (SPX) and Dow industrials (DJI) closed in record territory on Friday, getting a fresh push after the Bank of Japan surprised markets with an unexpected stimulus plan. The S&P has climbed 7% over the past two weeks, its best two-week showing since March 2011. But stocks around the world were pulling back on Monday after factory activity in the world's second-largest economy hit a five-month low in October.

Earnings support stocks: While U.S. stocks caught a good tailwind from more central-bank stimulus, Dan Greenhaus, chief strategist at BTIG, said in note that earnings should help stocks to maintain gains. Earnings are growing at a nearly 10% pace, and revenue is up 4% to 5%, beating expectations, based on the nearly 375 S&P 500 companies that have reported, he noted.

"As we've said for several quarters now, that is pretty darn good and should be enough to support higher stock prices," he said.

Analysts said markets will be keeping a close eye on midterms, with a survey by The Wall Street Journal/NBC News showing Republicans could control Congress by a slim margin after Tuesday's balloting.

Data due out Monday includes the October Markit purchasing managers index at 9:45 a.m. Eastern Time. At 10 a.m., the Institute for Supply Management will release its October survey, while construction spending for September will be released at the same time. Reports on October car sales are expected throughout the morning.

Charles Evans, the president of the Chicago Federal Reserve, is expected to give opening remarks at a Fed conference on infrastructure and growth at 9:30 a.m. Eastern.

Looking further ahead, this is the week for the monthly U.S. jobs report, due Friday. On Thursday, markets will be watching a meeting of the European Central Bank.

Stocks to Watch: Shares of Sapient Corp. (SAPE) could get a boost premarket. French advertising group Publicis SA announced a $3.7 billion-all-cash deal to buy the U.S. company. Publicis will pay $25 for each Sapient share, which represents a 44% premium to the closing price of Sapient on Oct. 31.

Apple Inc. (AAPL) is planning an investor call on Monday ahead of a potential bond sale, The Wall Street Journal reported, citing a banker working on the deal.

Argentina has banned Procter & Gamble Co. (PG) from doing business in that country, alleging that the consumer products giant has committed tax fraud, media reports said Monday. The company told the BBC it was working to understand and resolve those allegations.

Sysco Corp. (SYY) will report ahead of Monday's stock open, while Herbalife Ltd. (HLF) and AIG Inc. (AIG) report after the close.

Dollar above Yen113: The dollar (USDJPY) shot 1% higher against then yen on Monday, trading around Yen113.39, while gold (GCZ4) continued to drift lower and oil (CLZ4) inched up. Europe stocks drifted lower across the board, while Asia markets were mixed, but Tokyo was shut for a holiday.

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