U.S. stock index futures pointed to a flat open on Monday, following a strong rally to end last week's session, when the Nasdaq closed at an 18-month high on better-than-expected February payroll data.
On Friday, the government said 36,000 U.S. jobs were lost in February, compared with forecasts for 50,000, resulting in a rally that pushed the Dow and S&P to close at six-week highs.
People thought the jobs number was going to be terrible, so right now there's not as much pessimism as there was, said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.
Kaufman said while the markets were up on a continuation of the rally, we're nearing the point where we could be overbought, with less near-term upside potential.
S&P 500 futures added 0.3 points but were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 4 points, and Nasdaq 100 futures rose 1.75 points.
American International Group Inc
Dow component McDonald's Corp
Applied Materials Inc
U.S. Steel Corp
Late Friday, Hewlett-Packard Co
In overseas markets, Japan's Nikkei average <.N225> rose 2.1 percent to a six-week closing high on Monday, with exporters up on a weaker yen, while European shares <.FTEU3> inched lower on weakness in pharmaceutical stocks.
Toyota Motor Corp's
H&R Block Inc
With the Friday rally, all three indexes are now positive for the year. Last week the Dow rose 2.3 percent, the Nasdaq added 3.9 percent, and the S&P 500 climbed 3.1 percent.
(Editing by Jeffrey Benkoe)