Stocks are likely to move to the downside in early trading on Friday amid waning optimism about the likelihood of further stimulus from the Federal Reserve. The major index futures are pointing to a moderately lower open, with the Dow futures down by 61 points.
The downward momentum for the markets comes as traders continue to digest Federal Reserve Chairman Ben Bernanke's testimony before the Joint Economic Committee on Thursday.
While Bernanke said that Fed "remains prepared to take action" if the economic situation worsens, he made no explicit reference to further easing measures.
Disappointing trade data from Germany has also generated some negative sentiment, with a report from the Federal Statistical Office showing a 4.8 percent drop in imports in April.
Meanwhile, the Commerce Department recently released a report showing that the U.S. trade deficit narrowed to $50.1 billion in April from a revised $52.6 billion in March.
Economists had expected the deficit to narrow to $49.3 billion from the $51.8 billion originally reported for the previous month.
The narrower trade deficit for the month came as the value of U.S. imports fell at a faster rate than the value of U.S. exports.
by RTT Staff Writer
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