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By Barbara Kollmeyer, MarketWatch

Fed nervousness pushes dollar to multiyear highs against rivals

MADRID (MarketWatch) — Persistent nervousness about what’s seen as an inevitable U.S. rate hike this year unsettled stock futures Tuesday and pushed the dollar to fresh multiyear highs, which also took a bite out of commodities and overseas equities.

Concerns about what the start of Fed rate hiking could do to risk sentiment, to volatility and to demand for EM and higher-yielding assets won’t go away on their own, said Kit Juckes, global macro strategist at Socit Gnrale in a note.

Losses accelerated in the morning, with futures for the Dow Jones Industrial Average (DJH5) sliding 155 points, or 0.9%, to 17,818, while those for the S&P 500 index (SPH5) lost 17.5 points, or 0.8%, to 2,059.6. Futures for the Nasdaq-100 (NDH5) tumbled 34.25 points, or 0.77%, to 4,380.2.

www.marketwatch.com/story/us-stocks-futures-lower-as-bull-market-marks-sixth-anniversary-2015-03-09), which marked the sixth anniversary of Wall Street’s bull market, but nonetheless ended below last week’s record levels. The S&P 500 index (SPX) rose 0.4% to 2,079.43.

www.marketwatch.com/story/sp-500-cant-fight-the-markets-selloff-forever-2015-03-09)

www.marketwatch.com/story/sp-500-cant-fight-the-markets-selloff-forever-2015-03-09)Dollar is king: The dollar has already made some big moves during the global day. It surged against the euro (EURUSD) and the Japanese yen (USDJPY) as investors increasingly took stock of diverging monetary and economic conditions across the U.S. Europe and Japan. Nervousness is also setting in ahead of the March 17-18 Federal Open Market Committee meeting.

Last week’s upbeat jobs data has heightened speculation that the Fed’s statement next week might drop a reference to being patient before raising interest rates, now close to zero.

blogs.wsj.com/economics/2015/03/09/feds-fisher-says-raising-rates-soon-will-allow-for-more-gradual-path/)that robust gains in the job market could begin generating price pressures and prompt action on rates should be taken sooner rather than later. As well,

www.marketwatch.com/story/unemployment-rate-may-soon-start-with-a-3-2015-03-09)

Gold prices (GCJ5) were down about $6 to $1,160.30 an ounce on Tuesday, as strength in the dollar dulled demand for the dollar-denominated metal.

Data Tuesday include job openings and wholesale inventories for January at 10 a.m. Eastern.

Sticking to equities: Analysts at J.P. Morgan said they remain constructive on U.S. equities, which they note look expensive relative to history and similar to late-cycle levels, but aren’t so on a country-relative basis.

The U.S. trades at a 2.4 times premium on price/earnings (next 12 months) basis relative to its 10-year history, whereas the U.K. and eurozone trade at 4.5 times and 3.8 times, respectively. Further, equities still look attractive on a cross-asset basis, given the current yield environment and few attractive investment alternatives, said the team of strategists led by Dubravko Lakos-Bujas.

www.marketwatch.com/story/this-6-year-old-bull-markets-big-winners-biotech-pharma-and-value-stocks-2015-03-09)

www.marketwatch.com/story/apple-shows-off-new-smartwatch-macbook-2015-03-09). Shares were down about 0.8% in premarket trading.

www.marketwatch.com/story/apple-watch-may-be-a-social-disruptor-2015-03-10)

Barnes & Noble Inc. (>> Barnes & Noble, Inc. ) will release results ahead of the market’s open, while VeriFone Systems Inc. (>> VeriFone Systems Inc ) will report after the close.

Urban Outfitters Inc. (>> Urban Outfitters, Inc. ) rose 6.5% in premarket after earnings topped analysts forecasts late Monday.

Qualcomm Inc. (>> QUALCOMM, Inc. ) announced a $15 billion share buyback plan and lifted its quarterly dividend to 48 cents a share from 42 cents, effective March 25. Shares rose 2.3% in premarket.

www.marketwatch.com/story/chinese-stocks-retreat-after-data-fuel-deflation-fears-2015-03-10), despite a weaker yen, which in the past has proved a boost for stocks and exporters. Stocks fell amid reports that the Basel Committee on Banking Supervision may ask banks to raise capital. Chinese stocks fell after data showed China’s wholesale deflation worsened in February.

European stocks fell into the red, tracking losses for stock futures. Greece debt talks between Athens and its international creditors will resume on Wednesday. Strength in the dollar weighed on commodity stocks in Europe, acting as a drag on equities.

www.marketwatch.com/story/oil-prices-hanging-on-fresh-supply-data-2015-03-10)(CLJ5) pulled back as investors awaited fresh supply data. The U.S. Energy Information Administration’s monthly report is due later Tuesday.