Stock index futures opened lower after major indexes rebounded in Friday's session with the S&P 500 staging the biggest intraday turnaround in four years.
Stocks hit session lows on Friday after the nonfarm payrolls report missed estimates by almost 30%, weakening the dollar and boosting commodities producers' shares.
"The payroll number showed how dramatically manufacturing has been hit by the strong dollar and averages are doing nothing," TheStreet's Jim Cramer said. "The only people who want to tighten now are the pro-black-swan crowd!"
Tonight, Dow futures were down 32 points, or about 0.2% in New York, and S&P 500 E-mini futures fell 0.17%. Nasdaq 100 E-mini futures were lower by 0.15%. The U.S. Dollar Index (.DXY) ticked higher by 0.09%.
Over the weekend, Saudi Arabia cut pricing for November oil sales to Asia and the U.S. amid sluggish demand, Bloomberg reported.
And Portugal's Prime Minister Pedro Passos Coelho and his ruling coalition defeated the Socialist Party in the country's general election, Bloomberg reported, citing exit polls.
Looking ahead this week, earnings are in focus.
On Monday, The Container Store (TCS) reports. With analysts estimating earnings to be down year over year, expectations are muted. The stock has gotten so low that the company could surprise, Cramer said. Cramer will also be watching for the ISM non-manufacturing number. If that number slows then the Federal Reserve will need to reconsider when to raise interest rates.
On Tuesday, PepsiCo (PEP) reports. Relatively lower commodity prices should help the stock. Yum! Brands (YUM) is a bargain at these levels, Cramer said, as the Chinese consumer is still spending and things aren't likely as bad as many expect. We'll also be listening to the Adobe (ADBE) analyst meeting for validation that this company has successfully made the transition to a subscription model.
On Wednesday, Cramer favorite Constellation Brands (STZ) reports. Cramer said this is a buy given industry consolidation. Seed maker Monsanto (MON) also reports and Cramer advised to sell into any strength.
On Thursday, Domino's Pizza (DPZ) reports. Cramer said he'd be a buyer on any weakness. He is also bullish on the upcoming Alcoa (AA) report, as it plans to split into two companies.
On Friday, 3D printer maker and Growth Seeker holding Stratasys (SSYS) reports and Cramer doesn't like the stock. Although, 3D printing got some buzz for a while and may eventually move into the mainstream, there is no visibility on when that will become a reality.
Separately, Barron's cover story focused on three managers who love volatility and shared what they're buying now.
Craig Blum of TCW Select Equities has recently added to his position in American Towers (AMT), as he says its large towers will not become obsolete despite small cell competitors in urban areas because so much of the U.S. population lives outside cities.
He also likes Trifecta Stocks holding CVS (CVS) and Salesforce.com (CRM). CVS will "hold up extremely well in a slow-growth economy" and Saleforce's subscription-based revenue tends to be sticky, which can offset the high cost of attracting customers, Blum told Barron's.
Douglas Rao of Janus Forty used market volatility to add to some names including Action Alerts PLUS holding Google (GOOGL), Lowe's (LOW), Chipotle (CMG), General Electric (GE), and CoStar Group (CSGP).
"Some of our most value-creating ideas come from increased volatility," Rao told Barron's.
Bill Smead of Smead Value recently added to positions in Amgen (AMGN), American Express (AXP), and Tegna (TGNA).
"Periods of volatility provide opportunities to find quality at attractive values," Smead told Barron's.
For even more information on data and earnings in the week ahead, you can reference The Street's weekly earnings calendar.