Investing.com -- US stock futures edge lower following a Friday spike on Wall Street that was fueled by a strong jobs report. Markets are now gearing up for fresh inflation data which could provide more clarity on the path ahead for Federal Reserve interest rate policy in the coming months. Elsewhere, global miner Rio Tinto (NYSE:RIO) confirms a takeover bid for US-based Arcadium Lithium .
1. Futures lower
US stock futures pointed lower on Monday following a rally in the prior session sparked by a bumper September employment report.
By 03:28 ET (07:28 GMT), the Dow futures contract had shed 89 points or 0.2%, S&P 500 futures had fallen by 13 points or 0.2%, and Nasdaq 100 futures had dipped by 46 points or 0.2%.
On Friday, the main averages on Wall Street jumped after Labor Department figures showed that the US economy added far more jobs than anticipated last month. The numbers bolstered hopes that the the world's largest economy was on solid footing heading into the fourth quarter.
Although the reading dented projections that the Federal Reserve would roll out another jumbo 50-basis point interest rate reduction at its final meetings this year, it served to boost the idea that the central bank was on course to achieve a so-called "soft landing" -- a scenario in which elevated inflation is successfully quelled without a igniting a wider downturn in the economy or jobs market.
The 30-stock Dow Jones Industrial Average posted a record closing high, while the tech-heavy Nasdaq Composite added 1.2% and the benchmark S&P 500 grew by 51 points or 0.9%. The increases also helped the major indices eke out a fourth consecutive positive week.
2. Data, earnings ahead this week
Investors will have more economic data to pour over this week, as well as a raft of new quarterly corporate earnings.
Thursday’s consumer price index (CPI) data for September is expected to show that price pressures continued to moderate at the end of the third quarter. The data, coming on the heels of Friday’s robust jobs report is likely to shape expectations around the size and pace of Fed rate cuts in the coming months.
Producer price inflation data on Friday is also expected to point to tamer inflationary pressures.
“CPI for September will be a key data release. If prices rise faster than expected on top of the stronger labor data, chances for the Fed to skip the November meeting will increase,” analysts at UBS said in a recent note.
Meanwhile, US third-quarter earnings season is about to kick into gear, in what will be a test for a stock market near record highs and trading at lofty valuations.
Major financial firms -- including JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC) and BlackRock (NYSE:BLK) -- are all due to report on Friday.
3. Rio Tinto confirms approach to acquire Arcadium Lithium
Mining giant Rio Tinto (LON:RIO) has made an approach to purchase lithium producer Arcadium Lithium (NYSE:ALTM), the companies announced in separate statements on Monday.
Both groups said the approach was "non-binding," adding that they would divulge more about a potential deal when they had "news to share."
Should it be completed, the agreement would make Rio Tinto one of the world's biggest producers of lithium, the ultralight metal essential in powering electric vehicle batteries and power storage. Prior to the announcement, media reports had speculated that Rio may pursue a bid following months of slumping lithium prices due in part to oversupply in China and weaker EV demand.
No financial details were provided, but Arcadium Lithium has a market capitalization of around $3.3 billion. Shares in the Philadelphia-based firm surged by more than 35% in extended hours trading.
Reuters previously reported the discussions on Friday, saying that Arcadium could be valued at between $4 billion to $6 billion or higher.
4. Activist investor Starboard Value takes stake in Pfizer - WSJ
Activist investor Starboard Value has taken a stake in Pfizer (NYSE:PFE) worth around $1 billion as part of a bid to overhaul the pharmaceutical company, The Wall Street Journal reported on Sunday.
Starboard has approached two former Pfizer executives -- ex-CEO Ian Read and ex-CFO Frank D'Amelio -- to help in the process, the paper added, citing people familiar with the matter.
The report comes as Pfizer's leadership team is facing growing calls to turn around its recently flagging performance. The drugmaker was a key COVID-19 vaccine manufacturer during the pandemic, but it has struggled to plug a subsequent sales gap as the health crisis has abated. In late-2023, Pfizer issued a revenue warning and a disappointing 2024 outlook, along with a $3.5 billion cost-cutting drive.
Shares in Pfizer, which are now trading below pre-pandemic levels, were only modestly higher in after-hours dealmaking following the report.
5. Oil choppy
Oil prices were choppy on Monday following hefty gains posted in the previous week, as traders eye ongoing tensions in the Middle East.
By 03:28 ET, the Brent contract had risen by 0.5% to $78.47 per barrel, while U.S. crude futures (WTI) traded 0.8% higher at $74.94 a barrel.
Oil prices last week recorded their biggest weekly gains in over a year on the mounting threat of a region-wide war in the Middle East. Israel has sworn to strike Iran for launching a barrage of missiles at the country in retaliation for the assassination of the leader of Tehran-backed Hezbollah.