UKX FTSE 100 Index

By Barbara Kollmeyer, MarketWatch

Huntsman, Ford among stocks in focus for Monday

U.S. stocks were poised for modest gains Monday, as investors watched for the next catalyst for markets, looking to politics amid thin pickings in corporate news.

Dow Jones Industrial Average futures gained 28 points, or 0.1%, to 20,815, while S&P 500 index futures rose 2 points, or 0.1%, to 2,383.50. Nasdaq-100 futures added 7.25 points, or 0.1%, at 5,660.50.

All major indexes rose on Friday, but the S&P 500 index and the Dow fell 0.4% for the week. The Nasdaq Composite Index logged a weekly fall of 0.6%.

With the bulk of earnings season over, investors will be keeping an eye out for U.S. political headlines like the one last week that triggered a sharp midweek plunge for stocks (http://www.marketwatch.com/story/us-stock-futures-slide-as-concerns-over-trump-grow-2017-05-17). President Donald Trump traveled to the Middle East (http://www.marketwatch.com/story/trump-urges-muslims-to-fight-crisis-of-extremism-in-saudi-speech-2017-05-21) this weekend. Trump was in Israel on Monday.

Read:In the battle for control of the stock market, bulls may have an edge (http://www.marketwatch.com/story/stock-market-set-for-showdown-between-bulls-and-bears-2017-05-20)

That midweek dip was driven by reports that Trump asked then-Federal Bureau of Investigation Director James Comey to stop an investigation (http://www.marketwatch.com/story/trump-denies-asking-comey-to-drop-flynn-investigation-2017-05-18) into Russian meddling (http://www.marketwatch.com/story/white-house-official-probed-over-russia-and-president-called-comey-nut-job-reports-say-2017-05-19) into the U.S. election. And it has sown doubt that Trump will be able to push through a pro-economic-growth agenda seen as driving recent gains for stocks.

Investors will this week try to whether that selloff was temporary or a "signal of something more sinister," said Michael Stanes, investment director at Heartwood Investment Management, in a note Monday.

Read:This chart shows how stocks aren't breaking down--but not breaking out, either (http://www.marketwatch.com/story/this-chart-shows-how-stocks-arent-breaking-down-but-not-breaking-out-either-2017-05-22)

He argued, though, that gains for stocks after the presidential election are also due to improved global economic conditions and fading disinflationary effects that started in summer 2016. The fundamental backdrop hasn't changed, with the U.S. economy still on a solid footing and other global economies steady, said Stanes.

"We recognize that we are in the latter part of the market cycle and sentiment is likely to remain vulnerable to pressure points as we move through the year," he said.

Read:White House to roll out budget proposal, cutting Medicaid, assistance to the poor (http://www.marketwatch.com/story/white-house-to-roll-out-budget-proposal-cutting-medicaid-assistance-to-the-poor-2017-05-22)

Fed speakers ahead: The Chicago national activity index for April, due at 8:30 a.m. Eastern Time, is the only top-tier economic report expected Monday. Later in the week, data on home sales and the minutes of the Federal Open Market Committee meeting of May 3 will be highlights.

Read:Buoyant U.S. economy rides out rough political sea, but more storms ahead (http://www.marketwatch.com/story/buoyant-us-economy-rides-out-rough-political-sea-but-more-storms-ahead-2017-05-21)

Several Fed speakers are lined up for Monday, starting with Philadelphia Fed President Patrick Harker. He is scheduled to give a speech on the link between physical and economic well-being at Jefferson College of Health Professions in Philadelphia at 10 a.m. Eastern.

Minneapolis Fed President Neel Kashkari is expected to deliver brief welcoming remarks at his bank's conference on opportunity and inclusive growth at 10:30 a.m. Eastern.

Two speeches come after the market close. Fed Gov. Lael Brainard speaks on "the roles of opportunity and inclusion in strengthening the U.S. economy" in Minneapolis at 7:30 p.m. Eastern. Then Chicago Fed President Charles Evans gives a speech on the economy at an OTC derivatives conference in Shanghai, China, at 9:10 p.m. Eastern.

Stock movers: Shares of Huntsman Corp.(HUN) rose 7.5% in premarket trade after news it will merge with Switzerland's Clariant AG (CLN.EB), creating a chemicals giant worth about $14 billion. Under terms of the deal announced Monday (http://www.marketwatch.com/story/huntsman-clariant-to-combine-into-20-bln-company-2017-05-22), Clariant shareholders will own 52% of the new entity and Huntsman will own the rest.

Ford Motor Co.(F) shares were up 3% in premarket on reports the auto maker plans to replace Chief Executive Officer Mark Fields with Jim Hackett (http://www.marketwatch.com/story/ford-to-replace-ceo-mark-fields-with-jim-hackett-amid-pressure-on-profit-2017-05-22), a Ford executive who leads a unit that works on autonomous cars.

Other markets: Asian stocks were largely higher, outside of a 0.4% dip for the Shanghai . In Europe , stocks made modest gains.

Read:Miners, oil share lead the FTSE 100 higher (http://www.marketwatch.com/story/miners-oil-shares-lead-the-ftse-100-higher-2017-05-22)

(http://www.marketwatch.com/story/miners-oil-shares-lead-the-ftse-100-higher-2017-05-22)The dollar erased some gains from earlier, specifically against the euro after German Chancellor Angela Merkel reportedly said because of European Central Bank policies, the weaker euro has made German products cheaper (http://www.marketwatch.com/story/pound-declines-after-shift-in-uk-election-polls-euro-climbs-2017-05-22). Gold prices made modest gains (http://www.marketwatch.com/story/gold-keeps-rally-going-as-dollar-eases-stocks-churn-2017-05-22). West Texas Intermediate oil prices were climbing ahead of a meeting (http://www.marketwatch.com/story/oil-prices-climb-as-investors-wait-for-opec-meeting-2017-05-22) later this week of the Organization of the Petroleum Exporting Countries.

Read:4 potential outcomes for OPEC's crucial meeting (http://www.marketwatch.com/story/4-potential-outcomes-for-opecs-crucial-meeting-2017-05-19)

(END) Dow Jones Newswires

May 22, 2017 08:08 ET (12:08 GMT)

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