U.S. stocks were poised for a lower open on Monday, indicating equities may pull back from nearly 4-year highs after cash-rich Apple said it will begin paying a dividend and buying back stock.
It's a good story, the market was kind of expecting that. People were questioning what Apple could do with the money other than earn nothing, said Peter Kenny, managing director at Knight Capital In Jersey City, New Jersey.
Apple shares gained 1.7 percent to $595.61 in premarket trade.
The S&P 500 capped its fifth straight weekly gain, with its best week in three months on Friday. The index has risen in seven of the past eight sessions for a 4.5 percent climb.
We have to pull back somewhat. We have got to get a little closer to technical support, just in order for the trend to remain healthy, Kind of like pruning the tree, the market needs a little bit of a pruning, said Kenny.
S&P 500 futures fell 1.7 points and 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 lost 13 points, and Nasdaq 100 futures were off 0.5 point.
United Parcel Service Inc
Economic data expected later Monday includes the National Association of Home Builders/Wells Fargo March housing market index at 10 a.m. EDT (1400 GMT).
After the closing bell, Adobe Systems Inc
Dun & Bradstreet Corp
(Reporting By Chuck Mikolajczak; editing by Jeffrey Benkoe)