Stocks may move back to the upside in early trading on Wednesday after trending lower in recent sessions. The major index futures are currently pointing to a moderately higher open for the markets, with the Dow futures up by 43 points.
Bargain hunting is likely to contribute to any early strength on Wall Street, with some traders looking to pick up stocks at reduced levels following the recent weakness in the markets. The losses seen on Tuesday pulled the major averages down to new three-month closing lows.
Nonetheless, buying interest is likely to be relatively subdued amid lingering concerns about the political situation in Greece, which is headed for a new round of elections after lawmakers failed to form a coalition government.
Greek political leaders are meeting once again on Wednesday in an effort to form a caretaker government that can lead the country in the weeks leading up to the new elections. The new elections are seen as referendum on whether Greece should remain a member of the eurozone.
Meanwhile, the Commerce Department recently released a report showing that U.S. housing starts came in above economist estimates in April, although the report also showed a sharp drop in building permits.
The report showed that housing starts rose 2.6 percent to an annual rate of 717,000 in April from the revised March estimate of 699,000. Economists had expected housing starts to increase to 690,000 from the 654,000 originally reported for the previous month.
At the same time, the Commerce Department said that building permits fell 7.0 percent to an annual rate of 715,000 in April from the revised March rate of 769,000. Building permits are seen as an indicator of future housing demand.
The Federal Reserve is also scheduled to release its report on industrial production in the month of April at 9:15 am ET. Economists expect production to increase by about 0.5 percent.
Among individual stocks, shares of Target (TGT) could see early strength after the discount retailer reported better than expected first quarter results. The company also raised its full-year earnings guidance.
Farm machinery manufacturer Deere (DE) also reported better than expected quarterly results and raised its full-year guidance.
Meanwhile, shares of J.C. Penney (JCP) are likely to come under pressure in early trading after the department store operator reported disappointing first quarter results. The company also said it would discontinue its dividend.
After showing a lack of direction for much of the session, stocks came under pressure in the latter part of the trading day on Tuesday. Worries about Greece weighed on the markets once again, overshadowing a batch of largely upbeat U.S. economic data.
The major averages moved roughly sideways going into the close, stuck firmly in negative territory. The Dow fell 63.35 points or 0.5 percent to 12,632.00, the Nasdaq slipped 8.82 points or 0.3 percent to 2,893.76 and the S&P 500 dropped 7.69 points or 0.6 percent to 1,330.66.
In overseas trading, stock markets across the Asia-Pacific region saw significant weakness during trading on Wednesday. Japan's Nikkei 225 Index fell by 1.1 percent, while Hong Kong's Hang Seng Index plummeted by 3.2 percent.
Meanwhile, the major European markets have turned mixed over the course of the trading session. While the U.K.'s FTSE 100 Index is down by 0.1 percent, the French CAC 40 Index is up by 0.6 percent and the German DAX Index is up by 0.1 percent.
In commodities trading, crude oil futures are sliding $1.10 to $92.88 a barrel after falling $0.80 to $93.98 a barrel on Tuesday. An ounce of gold is fetching $1,541.50, down $15.60 from the previous session's close of $1,557.10. On Tuesday, gold dropped $3.90.
Among currencies, the U.S. dollar is trading at 80.52 yen compared to the 80.19 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.2742 compared to yesterday's $1.2729.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.