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

wallstreet nov01 12aug20 lt

Following the pullback seen late in the previous session, stocks may move back to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 241 points.

Continued optimism about a potential coronavirus vaccine may lead to a rebound on Wall Street, with airlines and cruise operators seeing notable strength in pre-market trading.

Airlines and cruise operators, which are among the companies that have been hurt the most by the coronavirus pandemic, largely resisted the pull back seen late in the previous session after Russia claimed to have approved an effective vaccine.

The markets may also benefit from a rebound by technology stocks, which helped to lead the late-day sell-off on Tuesday.

Tech giants like Apple (AAPL), Facebook (FB), and Microsoft (MSFT) are moving notably higher in pre-market trading following the sharp pullback seen in recent days.

Buying interest may be somewhat subdued, however, as lawmakers in Washington remain at a stalemate over a new coronavirus relief bill.

On the U.S. economic front, the Labor Department released a report showing consumer prices increased by more than anticipated in the month of July.

The Labor Department said its consumer price index climbed by 0.6 percent in July, matching the increase seen in June. Economist had expected consumer prices to rise by 0.3 percent.

Excluding food and energy prices, core consumer prices still advanced by 0.6 percent in July after inching up by 0.2 percent in the previous month. Core prices were expected to edge up by another 0.2 percent.

After turning in a mixed performance for most of the session, the major U.S. stock averages came under pressure late in the trading day on Tuesday. The Dow and the S&P 500 pulled back into negative territory, joining the tech-heavy Nasdaq, which posted a particularly steep loss.

The major averages ended the session just off their worst levels of the day. While the Nasdaq tumbled 185.53 points or 1.7 percent to 10,782.83, the Dow fell 104.53 points or 0.4 percent to 27,686.91 and the S&P 500 slid 26.78 points or 0.8 percent to 3,333.69.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index rose by 0.4 percent, while China's Shanghai Composite Index fell by 0.6 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.'s FTSE 100 Index has jumped by 1.4 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 climbing $0.61 to $42.22 a barrel after falling $0.33 to $41.61 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,941, down $5.30 compared to the previous session's close of $1,946.30. On Tuesday, gold plummeted $93.40.

On the currency front, the U.S. dollar is trading at 106.88 yen compared to the 106.49 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1786 compared to yesterday's $1.1740.

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