With traders keeping an eye on developments in Europe, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to a roughly flat open for the markets.
Traders may stay on the sidelines ahead of an upcoming summit of European leaders, although expectations regarding the summit are relatively subdued.
Ahead of the meeting, German Chancellor Angela Merkel reiterated her opposition to the idea of common eurozone bonds, saying that Europe would not share debt liability in her lifetime.
Meanwhile, traders have largely shrugged off the release of a report from the Commerce Department showing a much bigger than expected increase in U.S. durable goods orders.
The report showed that durable goods orders jumped by 1.1 percent in May following a revised 0.2 percent decrease in April. Economists had expected orders to increase by 0.4 percent.
Excluding orders for transportation equipment, durable goods orders increase by a more modest 0.4 percent in May compared to a 0.6 percent drop in the previous month.
Not long after the open, the National Association of Realtors is scheduled to release its monthly report on pending home sales. Economists expect pending home sales to climb 1.2 percent in May following a 5.5 percent drop in April.
by RTT Staff Writer
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