logo
Plus   Neg
Share
Email

U.S .Stocks May Give Back Ground In Early Trading

wallstreet july25 30apr21 lt

After ending the previous session mostly higher, stocks may move back to the downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 172 points.

Profit taking may contribute to initial weakness on Wall Street after the upward move seen on Thursday lifted the S&P 500 to a new record closing high.

The tech-heavy Nasdaq also reached a record intraday high during yesterday's trading but pulled back and ended the session only modestly higher.

A steep drop by shares of Twitter (TWTR) may weigh on the markets, with the social media giant plunging by 13.4 percent in pre-market trading.

The nosedive by Twitter comes after the company reported better than expected first quarter results but provided disappointing guidance.

On the other hand, shares of Amazon (AMZN) are likely to see initial strength after the online retail giant reported first quarter earnings that far exceeded analyst estimates.

Early negative sentiment may be partly offset by a report from the Commerce Department showing personal income skyrocketed in March amid the distribution of another round of stimulus checks.

The Commerce Department said personal income soared by 21.1 percent in March after plunging by a revised 7.0 percent in February.

Economists had expected personal income to spike by 20.3 percent compared to the 7.1 percent slump originally reported for the previous month.

The report also showed personal spending jumped by 4.2 percent in March following a 1.0 percent decrease in February. Personal spending was expected to surge up by 4.1 percent.

Just after the start of trading, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of April.

The Chicago business barometer is expected to edge down to 65.0 in April from 66.3 in March, but a reading above 50 would still indicate growth.

The University of Michigan is also scheduled to release its revised reading on consumer sentiment in the month of April.

The consumer sentiment index for April is currently expected to be upwardly revised to 87.5 from the preliminary reading of 86.5, which was up from 84.9 in March.

Stocks showed wild fluctuations over the course of the trading session on Thursday but managed to end the day mostly higher. With the upward move on the day, the S&P 500 ended the session at a new record closing high.

The major averages all closed in positive territory, although the Nasdaq underperformed its counterparts. While the Nasdaq edged up 31.52 points or 0.2 percent to 14,082.55, the Dow climbed 239.98 points or 0.7 percent to 34,060.36 and the S&P 500 advanced 28.29 points or 0.7 percent to 4,211.47.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index and China's Shanghai Composite Index both slid by 0.8 percent, while Hong Kong's Hang Seng Index plunged by 2 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is down by 0.1 percent, the U.K.'s FTSE 100 Index is up by 0.3 percent and the German DAX Index is up by 0.4 percent.

In commodities trading, crude oil futures are tumbling $1.48 to $63.53 a barrel after jumping $1.15 to $65.01 a barrel on Thursday. Meanwhile, after falling $5.60 to $1,768.30 an ounce in the previous session, gold futures are inching up $1.60 to $1,769.90 an ounce.

On the currency front, the U.S. dollar is trading at 108.96 yen versus the 108.93 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.2083 compared to yesterday's $1.2121.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT