Futures Pointing To Early Upward Move On Wall Street
Following the downward trend seen over the past several sessions, stocks may move back to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 179 points.
Traders may once again make an attempt at bargain hunting, although the buying interest seen early in the two previous sessions faded over the course of the day.
A lack of major U.S. economic could keep traders on the sidelines ahead of the release of reports on consumer prices, industrial production and retail sales in the coming days.
The looming Federal Reserve meeting may also keep traders reluctant to make significant moves, with the central bank potentially providing an update on the outlook for its asset purchase program.
The Fed’s two-day monetary policy meeting is scheduled for next Tuesday and Wednesday, but recent signs of slowing economic momentum could lead the central bank to hold off on discussing tapering.
Stocks once again failed to sustain an early upward move and came under pressure over the course of the trading day on Friday. With the downturn on the day, the Dow and the S&P 500 closed lower for the fifth consecutive session.
The major averages accelerated to the downside going into the close, ending the day firmly negative. The Dow fell 271.66 points or 0.8 percent to 34,607.72, its lowest closing level in well over a month. The Nasdaq slid 132.76 points or 0.9 percent to 15,115.49 and the S&P 500 dropped 34.70 points or 0.8 percent to 4,458.58.
For the holiday-shortened week, the Dow tumbled by 2.2 percent, while the S&P 500 and the Nasdaq slumped by 1.7 percent and 1.6 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index edged up by 0.2 percent, while China’s Shanghai Composite Index rose by 0.3 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index has jumped by 1 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are up by 0.8 percent and 0.7 percent, respectively.
In commodities trading, crude oil futures are climbing $0.85 to $70.57 barrel after jumping $1.58 to $69.72 a barrel last Friday. Meanwhile, after sliding $7.90 to $1,792.10 an ounce in the previous session, gold futures are slipping $3.70 to $1,788.40 an ounce.
On the currency front, the U.S. dollar is trading at 110.05 yen versus the 109.94 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1781 compared to last Friday’s $1.1814.
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