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Stocks May Move To The Downside In Early Trading - U.S. Commentary


After ending the previous session modestly higher, stocks may move to the downside in early trading on Wednesday. The major index futures are currently pointing to a slightly lower open for the markets, with the Dow futures down by 9 points.

Profit taking may contribute to early weakness on Wall Street following the upward trend seen over the past several sessions.

Trading activity may be somewhat subdued, however, as traders may stick to the sidelines ahead of the release of the minutes of the latest Federal Reserve meeting this afternoon.

The minutes of the Fed's September monetary policy meeting may shed some additional light on the outlook for interest rates.

Among individual stocks, shares of Delta Air Lines (DAL) may move to the upside after the airline reported third quarter results that beat expectations.

Asset management firm BlackRock (BLK) also reported third quarter earnings and revenue that came in above analyst estimates.

Stocks showed a lack of direction over the course of the trading session on Tuesday before eventually ending the day modestly higher. With the gains on the day, the Dow and the Nasdaq ended the session at new record closing highs.

The Dow climbed 69.61 points or 0.3 percent to 22,830.68, the Nasdaq edged up 7.52 points or 0.1 percent to 6,587.25 and the S&P 500 rose 5.91 points or 0.2 percent to 2,550.64.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index rose by 0.3 percent, while China's Shanghai Composite Index edged up by 0.2 percent.

Meanwhile, the major European markets have moved modestly lower on the day. While the German DAX Index is just below the unchanged line, the U.K.'s FTSE 100 Index is down by 0.1 percent and the French CAC 40 Index is down by 0.3 percent.

In commodities trading, crude oil futures are inching up $0.03 to $50.95 a barrel after jumping $1.34 to $50.92 a barrel on Tuesday. Gold futures, which climbed $8.80 to $1,293.80 an ounce in the previous session, are slipping $1.70 to $1,292.10 an ounce.

On the currency front, the U.S. dollar is trading at 112.11 yen compared to the 112.45 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1835 compared to yesterday's $1.1808.

by RTTNews Staff Writer

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