Stocks: Terror threat could have impact

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Stocks might take a breather after hitting record highs last week, possibly impacted by anxiety over terror threats that have prompted the closure of U.S. embassies.

U.S. stock futures were little changed.

"After the market posting record highs last week, we'll probably move sideways as investors take a look at the terror warnings abroad," said Peter Cardillo, chief market economist at Rockwell Global Capital. "That might be an excuse for investors to take a break."

Investors are waiting for the Institute for Supply Management to release its monthly service-sector index at 10 a.m. ET.

On the corporate side, Tyson Foods (TSN) is set to release quarterly results before the opening bell.

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HSBC (HBC) shares dropped 3.5% in London trading after the company reported results for the first half of the year that disappointed investors. The company announced an increase in revenue and profit before tax over the previous year as it sold assets.

U.S. stocks finished higher Friday after a worse-than-expected monthly jobs report. Investors initially hit the sell button after the report came out, but sentiment soon recovered. The Dow Jones industrial average and S&P 500 both closed at record highs.

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European markets edged higher in morning trading. London's FTSE 100 index was up by as much as 0.5%, taking a lead over the other European exchanges.

Asian markets ended with mixed results after investors got a chance to react to the Friday U.S. jobs report.

Japan's benchmark Nikkei index fell by 1.4% as the yen strengthened. But the Shanghai Composite index rose by 1% and Hong Kong's Hang Seng index edged up by 0.1%.

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