MARKET SNAPSHOT: U.S. Stocks: Futures Fall After Jobs Data Fuel Corporate-profit Fears

By Barbara Kollmeyer and Victor Reklaitis, MarketWatch

Gold rallies, oil prices also higher

NEW YORK (MarketWatch) -- Stock-futures indexes pitched south on Monday, indicating a tough return for Wall Street from a long holiday weekend after last week's disappointing jobs data triggered concerns about the coming corporate reporting season.

Futures for the Dow Jones Industrial Average (YMM5) fell 128 points, or 0.7%, to 17,548, while those for the S&P 500 (ESM5) fell 13.25 points, or 0.6%, to 2,046.25. Futures for the Nasdaq-100 index (NQM5) slid 27 points, or 0.6%, to 4,280.25.

The move lower, however, essentially came in Friday's shortened futures-trading session (http://www.marketwatch.com/story/us-stock-futures-up-ahead-of-jobs-report-in-holiday-shortened-trade-2015-04-03), following a weaker-than-expected jobs report for March. Regular stock-market trading was closed for the Good Friday holiday.

Payrolls rose by just 126,000 in March, far undershooting a MarketWatch consensus estimate of 243,000. Average hourly wages rose 0.3% in March, but that was offset by a drop in hours worked in the month.

Read: Fed hike in June seems remote after the jobs report (http://www.marketwatch.com/story/after-weak-jobs-report-a-june-fed-hike-seems-remote-2015-04-03)

To some, the weak report builds a case for the Fed pushing out an interest-rate hike even further. While such a delay would normally be a positive for stocks, that has been overshadowed by concerns that companies are facing difficult conditions to improve profits.

"Earnings are expected to decline for the next two quarters, the economy might actually have contracted in the first quarter and the Federal Reserve is set to raise interest rates. A powerful backdrop for equity prices this is not," said Dan Greenhaus, chief strategist at BTIG, in a note.

Greenhaus said weak economic reports so far haven't stopped the bull market, because corporate profits have helped keep stock prices higher. He said investors will be watching comments from companies for clues as to whether the market can continue to move higher.

If companies can show the dollar's rally has been a "temporary hiccup," and the fall in oil prices is supporting consumer spending, such as after fourth-quarter reports, then investors will "give them a pass. If not, a change is going to come to this bull market," he said.

Read: Stocks pressured ahead of earnings as job creation weakens (http://www.marketwatch.com/story/stocks-pressured-ahead-of-earnings-as-job-creation-weakens-2015-04-05)

Alcoa Inc. (AA) will provide the unofficial start of first-quarter earnings season with its report Wednesday after the close.

In U.S. economic news on Monday, the Institute for Supply Management's nonmanufacturing index will be released at 10 a.m. Eastern Time, with a reading of 56.0% expected. Also at 10 a.m., a labor market conditions index for March is due. Before the market's open, New York Fed President William Dudley said the stronger dollar and lower oil prices are drags on the economy (http://www.marketwatch.com/story/feds-dudley-says-strong-dollar-cheap-oil-are-drags-on-us-economy-2015-04-06), but he expects growth to pick up after a weak first quarter.

Individual movers: Shares of Herbalife Ltd.(HLF) fell in premarket action after federal law enforcement agencies reportedly contacted top members of the company, though which members and what officials asked of them wasn't clear.

Shares of Wynn Reports Ltd.(WYNN) could be in focus for Monday after a proxy-advisory firm on Sunday advised shareholders to protest governance support issues at the casino operator by voting against all board nominees, including dissident nominee Elaine Wynn (http://www.marketwatch.com/story/wynn-resorts-nominees-elaine-wynn-fail-to-get-proxy-advisory-firm-backing-2015-04-06).

Read more about Monday's jumpiest stocks in the Movers & Shakers column (http://www.marketwatch.com/story/herbalife-sinks-on-reports-of-probe-uniqure-soars-on-bristol-myers-deal-2015-04-06)

Other markets:Gold futures (http://www.marketwatch.com/story/gold-draws-buyers-as-stocks-drop-2015-04-06)(GCK5) gained as investors backed away from stocks. May crude oil (http://www.marketwatch.com/story/oil-rebounds-as-iran-exports-seen-taking-months-to-ramp-up-2015-04-06)(CLK5) rallied as some analysts said it could take several months before last week's Iranian nuclear deal spurs more crude supply from that country.

The dollar (DXY) was little changed after losing ground last week in the wake of the soft jobs report. In Asia, several markets, including those in China and Hong Kong, were closed for a holiday, while Japan's Nikkei 225 finished down 0.2%. European markets are closed until Tuesday.

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