U.S. Stocks Likely To See Further Upside In Early Trading

wallstreet sept05 09oct20

Stocks are likely to move higher in early trading on Friday, extending the upward move seen over the two previous sessions. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 119 points.

Continued optimism about a new stimulus bill is likely to contribute to initial strength on Wall Street, as traders keep a close eye on the latest developments in Washington.

In a post on Twitter, House Speaker Nancy Pelosi's deputy chief of staff Drew Hammill said the Democratic leader spoke with Treasury Secretary Steven Mnuchin for 40 minutes on Thursday.

"Their conversation focused on determining whether there is any prospect of an imminent agreement on a comprehensive bill," Hammill said. "The Secretary made clear the President's interest in reaching such an agreement."

Hammill said Pelosi trusts Mnuchin speaks for President Donald Trump even though White House Communications Director Alyssa Farah contradicted that assertion.

Farah told reporters that Trump wants a "skinny package" that is limited to stimulus checks, small business loans and an "airline bailout."

The mixed messages from the White House may lead to some uncertainty about the prospects for a new relief package, potentially keeping buying interest somewhat subdued.

Shortly after the start of trading, the Commerce Department is scheduled to release its report on wholesale inventories in the month of August. Wholesale inventories are expected to climb by 0.5 percent.

Following the rally seen on Wednesday, stocks saw further upside during trading on Thursday. With the upward move on the day, the major averages reached their best closing levels in over a month.

The major averages all ended the day in positive territory. The Dow rose 122.05 points or 0.4 percent to 28,425.51, the Nasdaq climbed 56.38 points or 0.5 percent to 11,420.98 and the S&P 500 advanced 27.38 points or 0.8 percent to 3,446.83.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index edged down by 0.1 percent, while China's Shanghai Composite Index jumped by 1.7 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has inched up by 0.1 percent, the French CAC 40 Index is up by 0.6 percent and the U.K.'s FTSE 100 Index is up by 0.8 percent.

In commodities trading, crude oil futures are slipping $0.22 to $40.97 a barrel after jumping $1.24 to $41.19 a barrel on Thursday. Meanwhile, after rising $4.30 to $1,895.10 an ounce in the previous session, gold futures are spiking $27.90 to $1,923 an ounce.

On the currency front, the U.S. dollar is trading at 105.86 yen versus the 106.03 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1806 compared to yesterday's $1.1759.

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