Adam Sarhan WSJ Quote: Stock Futures Fall

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TOMI KILGORE And TOMMY STUBBINGTON

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Jan. 13, 2014 8:27 a.m. ET
NEW YORK—U.S. stock futures slipped, extending the lackluster start to the year, as investors continued to digest Friday’s weaker-than-expected jobs report.In Europe, stocks nudged higher, helped by strength in banking shares after regulators agreed to soften the terms of a rule meant to ensure banks’ soundness.
About 90 minutes ahead of the open, Dow Jones Industrial Average futures eased 14 points, or 0.1%, to 16367.
S&P 500 index futures declined four points, or 0.2%, to 1834 and Nasdaq-100 futures lost five points, or 0.1%, to 3556. Changes in stock futures don’t always accurately predict stock moves after the opening bell.
On Friday, the Dow slipped 0.1%, while the S&P 500 gained 0.2%, as investors weighed the implications of a weak December jobs-growth reading, which led to a sharp decline in Treasury yields. That left the Dow down 0.8% this year, while the S&P 500 has declined 0.3%.
Data out early Friday showed that nonfarm payrolls grew just 74,000 in December, missing expectations of 200,000.
Adam Sarhan, chief executive officer at New York-based investment firm Sarhan Capital, said investors shouldn’t fret about Friday’s number, or the market’s apparent lackluster start to the year, and should continue to look for opportunities to buy.
“The market remains perched right near record highs as it consolidates the strong finish to last year,” Mr. Sarhan said. “Right now, market breadth remains strong and leadership remains robust.”
He also remains optimistic on fourth-quarter earnings season, and thinks results will beat expectations. “Analysts are still somewhat skeptical of companies’ ability to put up strong numbers,” Mr. Sarhan said.
The economic calendar is light. The Federal budget for December, due out at 2 p.m. EST, is expected to show a surplus of $44.5 billion.
The yield on the 10-year Treasury note rose slightly to 2.867%, after it fell to settle at a 3½-week low of 2.858% on Friday.
Front-month February crude oil futures gave up 0.9% to $91.87 a barrel, while January gold futures eased 0.1% to $1,245.50 an ounce. The dollar lost ground against the yen, but advanced slightly against the euro.
In Europe, the Stoxx Europe 600 tacked on 0.2%. Over the weekend, the Basel Committee on Banking Supervision, made up of banking regulators from around the world, said it had revised the definition of its leverage ratio in ways that will allow banks to report lower levels of overall risk.
“The decision indicates that regulators are becoming a bit more pragmatic. That’s the real positive for investors,” said Guy Foster, head of portfolio strategy at Brewin Dolphin, which manages £26 billion ($42.8 billion) of assets.
Germany’s DAX 30 index gained 0.1%, France’s CAC 40 edged up 0.1% and the U.K.’s FTSE slipped 0.1%.
Italy’s FTSE MIB advanced 0.3% after Italian industrial production rose more than forecast in November and after Italy secured euro-era record-low funding costs on three-year bonds at an auction Monday.
Asian markets were mixed. China’s Shanghai Composite eased 0.2% to close at a 5½-month low. Japan’s stock market was closed for a holiday.
In corporate news, Lululemon Athletica LULU +3.92% shed 15% in premarket trading after the yoga-wear retailer lowered its fiscal fourth-quarter earnings and revenue, citing a meaningful decline in traffic and sales since the beginning of January.
General Motors GM -1.14% tacked on 0.4% after the auto maker said it is the closest it has ever been to reinstating a dividend. The company’s chief financial officer, Dan Ammann, also said the European economy appears to have bottomed out.
Beam BEAM +0.74% surged 26% after the maker of Jim Beam whiskey agreed to be acquired by Japan’s Suntory for about $16 billion.
Source: http://online.wsj.com/news/articles/SB10001424052702303819704579318280833534534?mod=WSJ_LatestHeadlines
 

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