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U.S. Stocks May Move Back To The Upside In Early Trading


Stocks are likely to move back to the upside in early trading on Wednesday following the moderate pullback seen in the previous session. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 70 points.

A positive reaction to earnings news from IBM Corp. (IBM) may generate early buying interest, with the tech giant jumping by nearly 4 percent in pre-market trading.

The advance by IBM comes after the company reported better than expected fourth quarter results and provided upbeat full-year 2020 guidance.

Positive sentiment may also be generated in reaction to news of the Chinese government's efforts to stop the spread of the Wuhan coronavirus outbreak.

Chinese health officials told the Wall Street Journal that hospitals are stepping up preventive measures and government officials are recommending that people not enter or leave Wuhan.

Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of December.

Economists expect existing home sales to jump by 1.2 percent to an annual rate of 5.43 million in December after tumbling by 1.7 percent to a rate of 5.35 million in November.

Following the holiday on Monday, stocks fluctuated over the course of the trading day on Tuesday before ending the session mostly lower. With the drop on the day, the major averages pulled back off the record closing highs set last Friday.

The major averages all finished the day in negative territory. The Dow slid 152.06 points or 0.5 percent to 29,196.04, the Nasdaq dipped 18.13 points or 0.2 percent to 9,370.81 and the S&P 500 fell 8.83 points or 0.3 percent to 3,320.79.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index climbed by 0.7 percent, while Hong Kong's Hang Seng Index surged up by 1.3 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index has fallen by 0.3 percent, the French CAC 40 Index is just above the unchanged line and the German DAX Index is up by 0.1 percent.

In commodities trading, crude oil futures are sliding $0.53 to $57.85 a barrel after slipping $0.20 to $58.38 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,556.80, down $1.10 compared to the previous session's close of $1,557.90. On Tuesday, gold dipped $2.40.

On the currency front, the U.S. dollar is trading at 109.97 yen compared to the 109.87 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1088 compared to yesterday's $1.1082.

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